Copyright © 2021. Inderes Oyj. All rights reserved.

Novartis reported negative data from its Phase III CANOPY-2 trial for canakinumab in 2nd/3rd-line NSCLC; canakinumab targets the same IL-1 pathway as CAN04, but in a more restricted way. This has triggered negative sentiment towards Cantargia’s share price. However, we note that the readout coincided with the ongoing correction in the European and US biotechnology subsectors as well as in the broader technology sector. Starting in mid-February 2021, the biotechnology indexes retreated by as much as 15%, which continues to keep pressure on Cantargia’s share price.

Ultimately, we believe CAN04 is differentiated and Novartis’s results should add to the data that will help Cantargia define CAN04’s positioning. We value Cantargia at SEK6.86bn or SEK68.5/share.

Lähde: Finwire News

Cantargia AB is engaged in the development of products used in the treatment of cancer. It has developed specific antibodies against IL1RAP to treat serious, life-threatening diseases. The company's first product candidate, CAN04, has also been designed to treat different forms of cancer, with the initial focus on the treatment of non-small cell lung cancer and pancreatic cancer.