OSE Immunotherapeutics — OSE-127 Phase II study enrolment completed

OSE Immunotherapeutics (PAR: OSE)

Last close As at 12/06/2024

EUR7.21

−0.14 (−1.90%)

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EUR157m

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Research: Healthcare

OSE Immunotherapeutics — OSE-127 Phase II study enrolment completed

OSE Immunotherapeutics (OSE) completed patient recruitment in its Phase IIa study (NCT04605978) investigating its monoclonal antibody therapy, OSE-127/S95011, for the treatment of the autoimmune disease, primary Sjögren’s syndrome (pSS). The trial is sponsored and conducted by OSE’s partner, Servier, and will look to assess the efficacy and safety of OSE-127 in pSS patients with readouts expected in FY23. The drug has already demonstrated a promising safety and tolerability profile in a Phase I study in healthy volunteers. Existing standard-of-care regimes for pSS only treat symptoms of the condition. However, OSE-127 is being developed with the objective of becoming the first disease-modifying therapy for pSS, which may offer significant market differentiation, in our view. We continue to value OSE at €398.4m or €21.5 per share.

Soo Romanoff

Written by

Soo Romanoff

Managing Director - Head of Content, Healthcare

Healthcare

OSE Immunotherapeutics

OSE-127 Phase II study enrolment completed

Clinical trial update

Pharma and biotech

3 November 2022

Price

€6.61

Market cap

€122m

Net cash (€m) at 30 June 2022

0.3

Shares in issue

18.5m

Free float

65%

Code

OSE

Primary exchange

Euronext Paris

Secondary exchange

N/A

Share price performance

Business description

OSE Immunotherapeutics is an immunotherapy company based in Nantes and Paris, France and listed on the Euronext Paris exchange. OSE is developing immunotherapies for the treatment of solid tumours and autoimmune diseases and has established several partnerships with large pharma companies.

Analysts

Soo Romanoff

+44 (0)20 3077 5700

Dr Adam McCarter

+44 (0)20 3077 5700

OSE Immunotherapeutics is a research client of Edison Investment Research Limited

OSE Immunotherapeutics (OSE) completed patient recruitment in its Phase IIa study (NCT04605978) investigating its monoclonal antibody therapy, OSE-127/S95011, for the treatment of the autoimmune disease, primary Sjögren’s syndrome (pSS). The trial is sponsored and conducted by OSE’s partner, Servier, and will look to assess the efficacy and safety of OSE-127 in pSS patients with readouts expected in FY23. The drug has already demonstrated a promising safety and tolerability profile in a Phase I study in healthy volunteers. Existing standard-of-care regimes for pSS only treat symptoms of the condition. However, OSE-127 is being developed with the objective of becoming the first disease-modifying therapy for pSS, which may offer significant market differentiation, in our view. We continue to value OSE at €398.4m or €21.5 per share.

Year end

Revenue
(€m)

PBT*
(€m)

EPS*
(€)

DPS
(€)

DPS
(%)

Yield
(%)

12/20

10.4

(18.5)

(1.02)

0.0

N/A

N/A

12/21

26.3

(16.5)

(0.89)

0.0

N/A

N/A

12/22e

16.0

(27.8)

(1.28)

0.0

N/A

N/A

12/23e

0.0

(44.2)

(2.42)

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

pSS is an autoimmune disease affecting up to 3.1 million adults globally, with symptoms ranging from mild (dry eyes and mouth) to severe (organ dysfunction). As a reminder, OSE-127 is a monoclonal antibody that acts as an antagonist of the interleukin-7 receptor (CD127) present on the surface of certain immune system T-cells, targeting which results in a downregulation in inflammatory immune response.

OSE is developing OSE-127 in partnership with Servier for the treatment of both pSS and a second Phase II study (NCT04882007) in ulcerative colitis (US) being funded by OSE. Servier has a two-step option to in-license the drug after the completion of the Phase II trials. Having already received a €5m milestone payment in Q321 following inclusion of the first patient in the Phase II pSS study, OSE is still entitled up to a further €250m in milestone payments plus royalties. The next potential milestone is a €15m payment, which OSE would receive should Servier exercise the remainder of the licensing option on completion of the two Phase II studies. Readouts from the UC study are expected in FY23.

The Phase IIa pSS study is a randomized, double-blind, placebo-controlled study and has recruited 48 patients in centres across the United States, Europe and Australia. The trial’s primary endpoint will assess the change in ESSDAI total score at week 13. Additionally, we believe that by targeting niche indications where no disease-modifying treatment options currently exist, OSE-127 may represent a potential first-in-class market opportunity, if positive clinical results are achieved.

General disclaimer and copyright

This report has been commissioned by OSE Immunotherapeutics and prepared and issued by Edison, in consideration of a fee payable by OSE Immunotherapeutics. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

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London +44 (0)20 3077 5700

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London, WC1V 7EE

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1185 Avenue of the Americas

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United States of America

Sydney +61 (0)2 8249 8342

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by OSE Immunotherapeutics and prepared and issued by Edison, in consideration of a fee payable by OSE Immunotherapeutics. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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