Outlook: Given the positive recent Phase II data from the VB-111 ovarian cancer study, the expectation of initial analysis results from the Phase III rGBM study within the first half of 2017, and the number of solid cancer and inflammatory diseases that could benefit from this company’s proprietary platforms in the longer term future (assuming initial product success), the company seems to have a reasonable basis for optimism around future earnings and viability. H. C. Wainright initiated coverage on the stock in June of this year with a buy rating and a price target of $11 while noting the company’s novel anti-angiogenesis therapy for solid tumors offers lower toxicity, greater specificity, and simpler dosing regimen than currently available anti-angiogenesis drugs. Wainwrights analyst expects “VB-111, to reach the market in 2019 and achieve risk-adjusted annual sales of $386 million by 2026.”
After the Q2 results were reported, Roth Capital reiterated a Buy rating with a price target of $17. The firm cited both the ongoing Phase III Globe study for rGBM, and the very positive Phase II recurrent Platinum resistant ovarian cancer trial results (e.g. 810 day survival with VB-111 therapeutic dose versus 172 days with a lower dose, and a >50% reduction in the CA-125 biomarker over the current standard of care).
In June, Piper Jaffray’s analyst indicated the company is expected to perform better than the industry sector and mentioned that the Ovarian Cancer Phase 2 results have strengthened their confidence in the platform based on “VB-111’s potential to demonstrate efficacy in a second, challenging indication in addition to GBM.”
Vascular Biogenics has downplayed initial results for its most mature anti-inflammatory VB-201 trial, based upon seeing more effective second generation pre-clinical results. The potential of this secondary platform is still there but even without it, based on the multi-indication cancer fighting promise of VB-111 alone, there is reason to be optimistic about the current risk/reward profile of Vascular Biogenics at current trading levels.