Trillium Therapeutics, a clinical-stage immuno-oncology company developing innovative therapies for the treatment of cancer, said it received an equity investment of $25 million from the pharma giant Pfizer Inc; also investors remain upbeat over the impressive safety profile of TTI-622, an antibody-like fusion protein to be used for treating cancer, sending the stock soaring in after-hours trading on Tuesday.
Trillium Therapeutics’ shares jumped over 40% to $13.37 in after-hours trading. Also, the stock is up over 800% so far this year after closing at $1.03 in 2019.
Trillium Therapeutics said that it has agreed to sell nearly 2.3 million of its common shares at a price of $10.88 per share to Pfizer for gross proceeds of $25.0 million. The offering is expected to close on or about September 10, 2020.
Moreover, the company said in the phase 1 portion of the study of TTI-622, the safety assessment of the 8 mg/kg dosing cohort has been successfully completed. One Grade 4 thrombocytopenia dose-limiting toxicity was reported among the six evaluable patients; no additional Grade 3 or higher thrombocytopenia events have been observed.
“We are exceedingly encouraged by the evolving profile of TTI-622, our SIRPa-IgG4 Fc fusion protein, as demonstrated in the ongoing dose-escalation study in relapsed and refractory lymphomas,” said Jan Skvarka, Trillium’s President and Chief Executive Officer.
“TTI-622 is showing substantial monotherapy activity in highly pre-treated patients, with a broad therapeutic window, a rapid onset of action, and across a range of lymphoma indications. With no significant safety signals observed, we are further escalating the dose. TTI-621, our SIRPa-IgG1 Fc fusion protein, is showing a strong safety profile, and we have not observed any dose-limiting thrombocytopenia for doses up to 1.4 mg/kg.”
Trillium Therapeutics stock forecast
Three analysts forecast the average price in 12 months at $15.00 with a high forecast of $15.00 and a low forecast of $15.00. The average price target represents a 58.56% increase from the last price of $9.46. From those three analysts, two rated “Buy”, one rated “Hold” and none rated “Sell”, according to Tipranks.
Craig-Hallum set the price target for Trillium Therapeutics at $15 and gave the company ‘Buy’ rating. Jonestrading initiates with buy rating and $15 price target.
Other equity analysts also recently updated their stock outlook. JMP Securities issued an “outperform” rating and a $10.00 price target for the company. BidaskClub downgraded shares of Trillium Therapeutics from a “Hold” rating to a “sell” rating. At last, Zacks Investment Research raised shares of Trillium Therapeutics from a “strong sell” rating to a “Hold” rating.
“We continue to be impressed by the safety profile of TTI-622 and believe this is the strongest monotherapy data shown by a CD47 targeting candidate. Our KOLs have previously suggested that early monotherapy activity for any novel IO drug is important and can be an early sign of success. We believe that even if the higher dose of 12 mg/kg is not tolerable, the 50% ORR achieved at the 8mg/kg level is sufficient to advance this drug further,” said Boris Peaker, equity analyst at Cowen.
“Previous discussions with management indicate that TTI-622 enrollment has been less impacted by COVID-19 since it is targeting a more aggressive tumor type (DLBCL) thanTTI-621 (CTCL). Taking into account both the timing of enrollment and today’s impressive update, we continue to believe that TTI-622 could become the lead drug candidate,” Peaker added.
Risks to Trillium Therapeutics
Clinical Trial Risk: Trillium Therapeutics will require FDA approval to market its products in the U.S. and EMEA in Europe. Failure to gain such approvals would significantly impact the value of the company, Cowen highlighted.
Competitive Risk: There are multiple competing agents in development, for indications in which SIRPαFc is being studied. The success of such agents could significantly affect SIRPαFc market share should it be approved.
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