OncoSec Medical Inc (ONCSQ)

[hschlauch]

Looking at the data from a hypothetical Merck perspective...

Knowing second-line anti-PD-1 non-responder treatments for advanced melanoma are reserved primarily for Yervoy (around 10% ORR in anti-PD-1 non-responder population), you can either go the route of combining Keytruda with Yervoy and get on the order of 50% grade 3-4 AEs, 35% dropouts, and 20% best overall responses, or you put a patient on an ImmunoPulse IL-12/keytruda combination that observes less than 5% grade 3-4 AEs, 0% dropouts, and thus far achieves 30% responses (including complete response).

Merck needs a therapy in the anti-PD-1 non-responder setting for advanced melanoma - they don't have an anti-ctla-4 checkpoint inhibitor like BMY's Yervoy. This is clearly an untapped market for Merck.

Don't ask me why the market reacted the way it did to the data announcement - these aren't treatment naive first-line patients. Existing therapies in the anti-PD-1 non-responder second line setting for advanced melanoma are clearly more toxic and less effective.