Source: Dr. Tran BioSci
Summary
- As we increase our research efforts in bargain hunting, we notice that a bear market creates many excellent investment opportunities.
- In the midst of a down market, Sesen Bio’s shares are trading in the deep south. And yet, the company is undergoing many positive fundamental developments.
- The lead molecule Viccinium is being innovated as a potential treatment for non-muscle invasive bladder cancer, as an alternative to a bladder removal.
- Back in May, Sesen presented the excellent 3-month interim data of Vicinium in the Phase 3 VISTA trial. Nevertheless, the market misinterpreted the findings.
- Looking ahead, our analysis revealed that Viccinium should deliver the excellent 6-month clinical outcomes. The market and therapeutic demand for Viccinium is substantial.
"Looking out for mispriced betting opportunities and betting heavily when the odds are overwhelmingly in your favor is the ticket to wealth."
- Mohnish Pabrai
Fear is one of the most powerful human emotions because we tend to be most responsive to fear. Notwithstanding, fear can make an investor make an irrational decision. That’s what happening to Sesen Bio (NASDAQ:SESN), a small-cap immuno-oncology innovator seeking to fill unmet medical needs in the bladder cancer market. The company has a stellar drug, Viccinium a strong candidate to treat resistant non-muscle invasive bladder cancer. The interim 3-month data of the ongoing Phase 3 VISTA trial studying Viccinium was excellent. Nonetheless, the stock tumbled due to the market misinterpretation and inefficiency. Interestingly, Sesen is reporting the 6-month data in less than four weeks. Our analysis revealed that the clinical outcomes will be strongly favorable. In the midst of a bear market, Sesen presents itself at a deep discount. In this research, we’ll present an analysis of the upcoming clinical binary of Sesen and reaffirm our bull thesis on this highly promising company.
Figure 1: Sesen chart (Source: StockCharts)
About The Company
As usual, we’ll provide a brief overview of the company for new investors. If you are already familiar with the firm, we recommend that you skip to the subsequent section. Sesen is headquartered in the medical innovation hub (Cambridge MA). With the emphasis on the development and commercialization of advanced medicines to treat various cancers, Sesen is powering Targeted Protein Therapeutic which is similar to the validated antibody-drug conjugate.
As shown in Figure 3, the lead molecule Vicinium is being assessed in the Phase 3 VISTA trial as a potential treatment of bacillus Calmette-Guérin ("BCG") refractory high-grade non-muscle invasive bladder cancer ("NMIBC"). As mentioned, Sesen recently reported the strong interim data for Vicinium. There was a 42% complete response rate for the carcinoma in situ group at the 3-month interim analysis. The most interesting development is the combination of Vicinium and durvalumab (Imfinzi) of AstraZeneca (NYSE:AZN), currently in its Phase 1 trial for the same indication. In our opinion, combination therapy leads to improved clinical outcomes due to the less time that it has for cancer cells to evolve to escape immune detection and thus, preventing treatment relapses.
Figure 2: Therapeutic pipeline (Source: Sesen Bio)
Assessment Of The Third Quarter Earnings
As an earnings report reveals many important developments, we’ll analyze the Third Quarter earnings for the period that ended on Sep. 30. As follows, there is no revenue recorded for the quarter because Sesen is a developmental-stage bioscience company without an approved product. We believe that research and development (R&D) is highly i...
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