Cantargia

The key milestone during the third quarter was the interim CANFOUR ph I data presented at ESMO in October, indicating that CAN04 has generally been well tolerated. In addition, the company presented encouraging biomarker results. A maximum tolerated dose has not yet been established and the last cohort has been enrolled, with final dose results expected in Q4, followed by the initiation of ph IIa of the clinical programme. Moreover, Cantargia joined the main list on Nasdaq OMX Stockholm on 24 September, exposing it to a broader group of potential investors. Upcoming triggers in 2018 include ph I data on the final dose level, the initiation of ph IIa and the company releasing its US regulatory and clinical strategy. Marketing material commissioned by Cantargia.

Cantargia delivered a Q2 with slightly higher R&D spending than we had anticipated. Otherwise, there was limited news in the report, as the delay in the results from the ph I part of the CANFOUR study, as well as preclinical progress, had already been announced. CAN04 has shown a good safety profile so far, however, and the company presented new preclinical findings and improved its patent situation during the quarter. We make slight positive revisions to our milestone assumptions following the report, and raise our estimates due to the stronger USD. Marketing material commissioned by Cantargia.

Cantargia reported Q1 EBIT of SEK -15.3m, compared with our estimate of SEK -19.6m and SEK -18.4m in Q1 2017. The better result was attributable to lower R&D spending in the quarter y/y and versus our estimates. Marketing material commissioned by Cantargia.

Immuno-oncology is a rapidly evolving field and has recently experienced a flurry of partnership deals. In the last five years, the segment accounted for 32 of the 35 multi-billion dollar oncology licensing deals. Cantargia’s lead candidate is the antibody CAN04, which has a dual mechanism of action, as it fights cancer by activating the immune system and by blocking signals that lead to tumour growth. It is currently undergoing a phase I/IIa trial within NSCLC and pancreatic cancer. Marketing material commissioned by Cantargia.