Fund manager James McDonald of the Pengana High Conviction Equities Fund provides an overview of some of the current opportunities for the Fund.
In particular, James explains why the sample share Immutep is uniquely positioned to take advantage of the current environment and how it fits into the structure of the portfolio. With a focused portfolio of less than 20 stocks, Immutep is one of the stocks held by investors in the Pengana High Conviction Fund and is one of our best performers which we are very excited about.
The Fund first invested in this company in November of last year when the share price was $ 0.25. It’s now around $ 0.53, which is nice. The business had a very low market value compared to the income opportunity.
Their main drug, Eftilagimod, is not licensed, making the company an attractive acquisition target. It has encouraging clinical data in three indications. Breast cancer, lung cancer, and head and neck cancer.
It has partnered with two of the world’s largest pharmaceutical companies, Merck USA and Merck Kgab, Germany, to conduct joint clinical studies, both of which could be potential acquirers of the company. Recently Bristol Myers Squibb recorded positive phase three data with a similar class of drug, which has generated great interest in this industry.
About two months ago, the FDA granted fast-track approval for DF in head and neck cancer, which will speed up the rate at which the drug could be approved. This is a market opportunity of around $ 2 billion, so very significant in itself regardless of other indications. We will continue to get more data on this drug over the next 12 months, which could generate substantial value.
Watch fund manager James McDonald’s latest webinar, “Growing Opportunities for Healthcare Investors” to learn more about Immutep and other stocks that are doing well for the fund.