OncoSec Medical Inc
For over four years, OncoSec (ONCS) has been a somewhat ignored and under-appreciated stepchild in the immuno-oncology world, but that is about to change. Born of a technology license from DNA vaccine company Inovio, which has achieved a $564 million market capitalization based on the same electroporation technology as was licensed to OncoSec in other diseases, OncoSec has plodded along with various changes in therapeutic strategy, management turnover in key scientific positions, a reverse stock split that is still cannon fodder on message boards, a young CEO who has been the target of a largely retail shareholder base's ire, and a months-long delay in starting an important combination trial with anti-PD1 agent Keytruda.
However, as discussed in detail below, the tide is turning for OncoSec as all of these overhangs are either currently, or are on the verge of being resolved, and the next six to nine months should prove the value of the Company's technology in many ways, including a near-term update of efficacy in a second tumor type (Merkel cell cancer). In last week's biotech sell-off, many high-fliers went from being very expensive to just being expensive, reversing big gains generated over just the previous 1-3 months, but OncoSec started the week as cheap and ended it ridiculously so.
With many of its biotech peers still not sufficiently undervalued to warrant purchase, OncoSec finds itself on sale (a paltry $44 million enterprise value) with a clear therapeutic focus, a star Chief Scientific Officer and Chief Medical Officer steering development strategy (neither of whom has had much exposure to investors), two large biotech funds as new investors, a $700 million deal between AstraZeneca and Inovio that validates electroporation of IL-12 as an immunotherapy approach, and a development partnership possible much sooner than anticipated. After a brief company description and a recap of data generated to date, presented below are ten reasons to buy OncoSec.
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