Late-stage biotech OncoSec Medical (ONCS) has announced that it has entered into purchase agreements for an aggregate 4,608,589 of its shares at an offering price of $3.25 per share.This will generate aggregate gross proceeds of approximately $15 million, says ONCS, before placement agent fees and other offering expenses. The offering is expected to close on or about August 19, 2020.According to the statement, ONCS intends to use the net proceeds for clinical, regulatory, manufacturing and, if and when approved, potential commercial activities of its product candidates; research and development activities, including potential acquisitions and in-licensing; and other general corporate purposes.OncoSec is focused on developing cytokine-based intratumoral immunotherapies to stimulate the body’s immune system to target and attack cancer. Its lead product candidate, TAVO, is designed to enable the immune system to target and attack tumors throughout the body.The company is currently evaluating TAVO in combination with the anti-PD-1 checkpoint inhibitor, Keytryda (pembrolizumab), in two KEYNOTE clinical trials, including a pivotal trial in patients with anti-PD-1 checkpoint resistant metastatic melanoma and a phase 2 trial in metastatic triple negative breast cancer.Shares in the company fell 6% on Friday- but are still up over 114% year-to-date at $3.90. Plus all three analysts covering OncoSec rate the stock a buy, giving it a Strong Buy Street consensus. That’s with an average analyst price target of $8.17- suggesting shares can again double from current levels.On July 27, Dawson James analyst Jason Kolbert initiated coverage on ONCS with a buy rating and $10 price target (156% upside potential). He praised encouraging trial results so far, noting that TAVO has been well tolerated, and writing “Initial evidence suggests that this gene therapy has the potential to not only treat cancer cells in the target area but to also trigger immune responses affecting remote cancer cells outside the direct treatment area, including distant lesions.”He ultimately expects to see expansion into the broader Melanoma market, as well as other indications such as Squamous Cell Carcinoma Head and Neck Cancer (SCCHNCC) and Triple Negative Breast Cancer (TNBC).As a result, in respect of the company’s valuation, Kolbert projects revenues in Melanoma, initially in Phase III/IV patients, and then assumes broader adoption in earlier-stage patients followed by entry in the SCCHNCC and TNBC markets. He applies probabilities of success in his therapeutic models of 70% to just 50%. (See ONCS stock analysis on TipRanks).Related News: Masimo Gets FDA Clearance For Tracking Tool In Ventilated Adult Patients Novavax Pops 7% On South Korea Deal For Global Covid-19 Vaccine Supply Inovio: Valuation and Volatility Keep This Analyst Sidelined More recent articles from Smarter Analyst: * Barclays Lifts NetEase's PT On Gaming Sales Growth Bet * Wedbush Lifts Nvidia’s PT Ahead Of 2Q Results * Sanofi Inks Deal To Buy Principia Pharma For $3.68 Billion * Microsoft Looking To Snap Up TikTok’s UK Services As Well - Report
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