Post by JHam on Jul 22, 2014 8:20:38 GMT
It is a little old, but I think it is a good breakdown of the differences in the two companies (INO is the main competition to ONCS). The big difference being INO's approach is a vaccine. This is an interview with Rahul Jasuja, managing director and senior biotechnology analyst with Noble Financial Capital Markets. I'll copy and paste the most important parts below:
www.thelifesciencesreport.com/pub/na/13899
TLSR: Let's move on to immunotherapy.
RJ: Sure. This is where I cover a couple of micro-cap companies. One of them is Inovio Pharmaceuticals Inc. (INO:NYSE.A). Inovio has made notable progress with its DNA vaccine platform. One of the goals of developing a vaccine is to trigger a strong T-cell response. Vaccines have historically been efficient in inducing an antibody response by activating the humoral side of the immune system. However, most vaccines have not produced a potent cell-mediated immune response, such as a T-cell-driven immune response. Cell-mediated immunity is needed for viral- and cancer-based therapies.
"Sophisticated biotech investors are at ease with micro caps and may see opportunities at low valuations."
Inovio has developed a proprietary engineered DNA plasmid (circular DNA that is translated into amino acids/protein outside of the nucleus and chromosome). The plasmid is delivered by electroporation (an electrical pulse given topically at the injection site) to induce dendritic cells and antigen-presenting cells (immune cells) to take up the DNA plasmid and synthesize antigens (amino acid sequences/proteins) in a manner that mimics a natural immune response. The outcome is a strong T-cell response. Early studies show robust antigen-driven T-cell responses in clinical trials. If successful, Inovio's technology platform could revolutionize the future of vaccines, both therapeutic and preventative. Such innovation in micro caps may be risky and face hiccups along the way, but it also has the potential to reward investors in the long term.
OncoSec Medical Inc. (ONCS:OTCBB) is a spinoff of Inovio and uses the same electroporation delivery technology as Inovio. However, instead of delivering a DNA plasmid that codes for an antigen sequence to trigger an immune response, it delivers the DNA sequence of a potent cytokine, IL-12, locally at the tumor site by topical electroporation injection. Electroporation enhances the cellular uptake of the DNA plasmid. IL-12 is toxic if administered systemically, and past attempts at IL-12 delivery by intravenous injection have been hindered by safety and tolerability issues. The power of IL-12 could not be harnessed with systemic intravenous injection. But when delivered locally by electroporation as a DNA plasmid, IL-12 can modulate immune pathways in the tumor microenvironment and induce an antigen-driven, regulated and systemic tumor response. In other words, IL-12 may reverse the immune-suppressed state in the tumor environment and realign the immune system to destroy the tumor.
TLSR: Is there any indication that localized drug delivery with electroporation might elicit an immune response to inhibit metastasis or aggressive tumor expansion?
RJ: A topical delivery that drives the immune system? The electroporation injection has the potential to be administered intratumorally to internal organs as well. OncoSec is first focusing on those tumors that manifest on the skin—melanoma, Merkel cell carcinoma and cutaneous T-cell lymphoma are most amenable to topical electroporation delivery. OncoSec has shown early proof-of-concept in phase 1 data. We need more data points, but the technology is extremely promising. The ongoing phase 2 studies will be crucial.
TLSR: One final question on OncoSec. It has an $18–19M market cap currently. Does this represent deep value?
RJ: OncoSec is mispriced and understandably so. One cannot expect the Street to gauge the potential of OncoSec's platform because the technologies are complex and difficult to understand. And, as we discussed earlier, given market conditions, micro caps with significant associated risk are not of interest to public investors. A valuation of $18M or $19M is clearly a sign that if OncoSec succeeds in phase 2 for either one of its oncology studies, the stock could react nicely. For such micro caps or nano caps, market valuation at this stage is an inefficient metric. Once clinical data is understandable and can be digested by the large majority of investors, the valuation will likely be healthier.
www.thelifesciencesreport.com/pub/na/13899
TLSR: Let's move on to immunotherapy.
RJ: Sure. This is where I cover a couple of micro-cap companies. One of them is Inovio Pharmaceuticals Inc. (INO:NYSE.A). Inovio has made notable progress with its DNA vaccine platform. One of the goals of developing a vaccine is to trigger a strong T-cell response. Vaccines have historically been efficient in inducing an antibody response by activating the humoral side of the immune system. However, most vaccines have not produced a potent cell-mediated immune response, such as a T-cell-driven immune response. Cell-mediated immunity is needed for viral- and cancer-based therapies.
"Sophisticated biotech investors are at ease with micro caps and may see opportunities at low valuations."
Inovio has developed a proprietary engineered DNA plasmid (circular DNA that is translated into amino acids/protein outside of the nucleus and chromosome). The plasmid is delivered by electroporation (an electrical pulse given topically at the injection site) to induce dendritic cells and antigen-presenting cells (immune cells) to take up the DNA plasmid and synthesize antigens (amino acid sequences/proteins) in a manner that mimics a natural immune response. The outcome is a strong T-cell response. Early studies show robust antigen-driven T-cell responses in clinical trials. If successful, Inovio's technology platform could revolutionize the future of vaccines, both therapeutic and preventative. Such innovation in micro caps may be risky and face hiccups along the way, but it also has the potential to reward investors in the long term.
OncoSec Medical Inc. (ONCS:OTCBB) is a spinoff of Inovio and uses the same electroporation delivery technology as Inovio. However, instead of delivering a DNA plasmid that codes for an antigen sequence to trigger an immune response, it delivers the DNA sequence of a potent cytokine, IL-12, locally at the tumor site by topical electroporation injection. Electroporation enhances the cellular uptake of the DNA plasmid. IL-12 is toxic if administered systemically, and past attempts at IL-12 delivery by intravenous injection have been hindered by safety and tolerability issues. The power of IL-12 could not be harnessed with systemic intravenous injection. But when delivered locally by electroporation as a DNA plasmid, IL-12 can modulate immune pathways in the tumor microenvironment and induce an antigen-driven, regulated and systemic tumor response. In other words, IL-12 may reverse the immune-suppressed state in the tumor environment and realign the immune system to destroy the tumor.
TLSR: Is there any indication that localized drug delivery with electroporation might elicit an immune response to inhibit metastasis or aggressive tumor expansion?
RJ: A topical delivery that drives the immune system? The electroporation injection has the potential to be administered intratumorally to internal organs as well. OncoSec is first focusing on those tumors that manifest on the skin—melanoma, Merkel cell carcinoma and cutaneous T-cell lymphoma are most amenable to topical electroporation delivery. OncoSec has shown early proof-of-concept in phase 1 data. We need more data points, but the technology is extremely promising. The ongoing phase 2 studies will be crucial.
TLSR: One final question on OncoSec. It has an $18–19M market cap currently. Does this represent deep value?
RJ: OncoSec is mispriced and understandably so. One cannot expect the Street to gauge the potential of OncoSec's platform because the technologies are complex and difficult to understand. And, as we discussed earlier, given market conditions, micro caps with significant associated risk are not of interest to public investors. A valuation of $18M or $19M is clearly a sign that if OncoSec succeeds in phase 2 for either one of its oncology studies, the stock could react nicely. For such micro caps or nano caps, market valuation at this stage is an inefficient metric. Once clinical data is understandable and can be digested by the large majority of investors, the valuation will likely be healthier.