Medicago’s flu vaccine posts “solid immune response”; Dundee sets price target

A Phase 1 trial of Medicago’s plant-based vaccine against H5N1 avian flu found it to induce a “solid immune response,” as well as being safe and well-tolerated.

“We are very pleased with the results from this study,” Medicago (TSX-V:MDG) CEO Andy Sheldon said in a statement.

The trial was the first ever clinical evaluation of a plant-based “influenza virus-like particle” vaccine. The company’s Proficia platform has been shown to be a rapid response and low cost manufacturing system that can increase the speed of a public health response in the event of a pandemic outbreak.

Looking ahead, Mr. Sheldon said the successful completion of this trial should enable Medicago to formalize various partner agreements and tap new sources of non-dilutive funding available through U.S. grant programs. Based on the results, Medicago will proceed with a Phase 2 clinical trial, expected to start during the first half of 2010.

In a new report, Dundee Capital Markets analyst David Martin reiterated his “buy, speculative risk” rating on the stock and set the 12-month price target at $1. He previously didn’t have a target. The stock closed at 78 cents on Friday.

Mr. Martin writes that Medicago delivered a stronger antibody response than Novavax, Baxter, Sanofi and CSL of Australia, but below Glaxo in testing against H5N1.

While Medicago did not deliver the “knockout punch” of one dose efficacy, he said the safety and activity reported for H5N1 are, in our opinion, “competitive with major players in the vaccine space.”

http://biotuesday.ca/2009/12/21/medicagos-flu-vaccine-posts-“solid-immune-response”-dundee-sets-price-target/