OncoSec Medical Inc (ONCSQ)

[trading.jeff]

Thanks for posting!! Here are some highlights from the article, imo:

The companies involved in the development of immunotherapy products are diverse, as some are leading innovation while others lag. In the case of OncoSec Medical (ONCS.OB), it appears to be a true leader.
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OncoSec’s OMS uses electrical pulses to create temporary pores in the cell membrane. OncoSec can then locate a tumor, and then create this pore to deliver an agent directly to its root. By doing so, OMS bypasses the body’s natural defense to eliminate foreign objects, as one of the problems with Provenge is that by administering intravenously the drug becomes weaker by the time it reaches its destination.

Therefore, OncoSec is using a proven technology where it does not have to worry about identifying the tumor. The company simply targets where it wants to administer an agent.
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With OMS, OncoSec is able to increase the uptake of an agent by over 1,000 fold, which in turn allows it to use less of an agent, thus limiting side effects. Thus, OncoSec can then use a very powerful and effective agent, because it can essentially remove the drawbacks of using the agent alone.

As a result, OncoSec is using IL-12 in conjunction with OMS. IL-12 is a very powerful immunotherapy candidate that does in fact reduce the size of tumors and extend life. However, it is far too toxic to be given alone. Yet according to clinical data, the combination of OMS and IL-12 not only increases cellular uptake but also leads to efficacy without those harmful side effects.
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Despite OncoSec’s strong data, and its promising approach, the company trades with a market cap of only $50 million. In 2013, shares have risen 30%, and this coming despite financing, as the company now has enough cash to operate through the next year. Regardless, $50 million does not properly value both the data from its clinical programs or its potential in revenue.

MCC is an orphan disease, therefore revenue won’t be large. However, the consensus is for MCC to generate revenue in the range of $100 to $300 million in annual sales. With melanoma, the sales potential is far greater. OncoSec will be targeting those who are in Stages IIIB & IIIC, whose only treatment is surgery and radiation. The blockbuster drug Yervoy targets those who have more advanced stages of the disease. Thus, OncoSec can control a large piece of the space, with peak sales potential between $700 million and $1 billion.

$ONCS