Innate Pharma BMS Initiates Two First Phase Trials

Innate’s partner Bristol Myers Squibb has started two large Phase I studies with the anti-KIR antibody IPH2102 given in combination with Yervoy (ipilimumab) and separately with the high-profile anti-PD-1 antibody nivolumab in solid tumours, marking a significant expansion of the programme. Innate has also started a Phase II trial of IPH2102 in AML, following promising Phase I data. A single-agent Phase IIa trial of IPH2101 in MM has rendered disappointing data, but interim results from a Phase I trial in combination with lenalidomide were more encouraging.

Two new Phase I combo trials for solid tumours
BMS has initiated two large Phase I trials with IPH2102 (BMS-986015) in combination with two different immunotherapies, ipilimumab and anti-PD-1 (nivolumab), in solid tumours. These include non-small cell lung cancer (NSCLC), renal cell carcinoma (RCC), melanoma, colorectal cancer and serous ovarian carcinoma. Results of both studies are expected in Q415. Ipilimumab is approved as monotherapy for advanced melanoma, while nivolumab is in Phase III trials for NSCLC, RCC and melanoma.

Phase II trial in AML starts
Meanwhile, Innate has started a Phase II trial of IPH2102 monotherapy in acute myeloid leukaemia (AML), following encouraging Phase I data. Data are expected in Q316. The Phase I trial demonstrated median progression-free survival (PFS), relapse-free survival (RFS) and overall survival (OS) of 7.7, 10.8 and 12.7 months respectively. Single-agent Phase IIa trial results in smouldering and multiple myeloma (MM) did not show significant reductions in M-protein levels, but interim Phase I data from an MM trial with IPH1201 and lenalidomide (Revlimid, Celgene) appeared more encouraging.

Funded to 2015
Innate ended Q3 with cash of €32.3m. Our financial model suggests Innate will not need to raise capital until 2015.

Valuation: Risk-adjusted NPV of €110m
We have revised our valuation and now indicate a risk-adjusted NPV of €110m (including cash), based on prudent assumptions of probabilities of success, launch dates, pricing and market penetration. While the share price is approaching its fair value, we view the investment case more positively as a result of Innate’s low-risk profile associated with its partnerships. The rNPV will rise as products successfully progress through development.

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