Harpoon Therapeutics' Platform To Drive Significant Value, Wedbush Says In Bullish Initiation

Harpoon Therapeutics Inc HARP, a clinical-stage immunotherapy company working on therapies for solid tumors and hematological malignancies, recently offered 5.4 million shares in an IPO, pricing the shares at $14 each. 

The Analyst

Following the expiration of the IPO quiet period, Wedbush analyst Robert Driscoll initiated coverage of Harpoon with an Outperform rating and $23 price target.

The Thesis

Harpoon's initial focus on clinically validated targets increases the probability of success, and its next-gen bispecific platform TriTACs will likely drive additional value as novel candidates are advanced into clinical trials, Driscoll said in the Tuesday initiation note. 

Harpoon's lead candidate HPN424 is a PSMA-targeted TriTAC for treating metastatic, castration-resistant prostate cancer. Preliminary Phase 1 data supported once-weekly dosing and demonstrated a favorable safety profile, with evidence of T cell activation, the analyst said. Additional data from the dose-escalation study is expected in the second half of 2019 at a medical meeting, he said. 

Harpoon expects to initiate a Phase 1 study for HPN536, another asset which is being evaluated for solid tumors expressing mesothelin, in the second half of 2019, he said. 

A ProTriTAC platform Harpoon is developing uses a prodrug approach, Driscoll said. An initial ProTriTAC candidate is likely to begin IND-enabling studies in 2019, the analyst said. 

Wedbush sees the collaboration agreement Harpoon has with AbbVie Inc ABBV as offering non-dilutive capital and platform validation.

The Price Action

Harpoon Therapeutics shares were down 3.7 percent at $16.38 at the time of publication Tuesday. 

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