Y-mAbs Therapeutics: Impressive Data In Multiple Oncology Indications, Regulatory Submissions Loom

Summary

• Shares have risen by over 25% since IPO pricing in September of last year.
• Given indications of severe unmet need and drastically improved patient outcomes, I'm optimistic on initial regulatory approvals in 2020 and hope lead product candidates make it to patients soon.
• Multiple data readouts and regulatory submissions later this year could drive more interest to the stock.
• Management team has significant depth and experience, with several members hailing from Danish pharmaceutical giant Genmab.
• Competition in certain indications (from larger pharmaceutical companies) is a principal risk factor to consider.
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Shares of Y-mAbs Therapeutics (NASDAQ:YMAB) have risen by over 25% since IPO pricing at $16 in September of last year. While the stock price briefly peaked above $30, it's come back down to a more reasonable level (performance is flat so far in 2019).

The company initially drew my attention given that much of leadership hails from Danish pharmaceutical giant Genmab (OTCPK:GNMSF) (GMXAY) and two lead programs could see regulatory submissions later this year for oncology indications of high unmet need.

The theme the company is operating in (precision medicine/targeted oncology) has been a hot one with a number of winners over the past couple years and my first glance at its JPMorgan presentation revealed significant optionality in the basket trial of B7-H3 positive CNS/LM tumors.

Chart

Figure 1: YMAB daily advanced chart (Source: Finviz)

Figure 2: YMAB 15-minute chart (Source: Finviz)

When looking at charts, clarity often comes from taking a look at distinct time frames in order to determine important technical levels to get a feel for what's going on. In the first chart (daily advanced), we can see that since IPO the stock has bounced around quite a bit and currently appears to be consolidating around the $20 level. In the second chart (15-minute), we can see a bit of weakness and selling pressure taking place (albeit on low volume). In fact, the stock trades just 66,000 shares on average daily and oftentimes much lower.

Overview

One thing that immediately sticks about Y-mAbs is that both lead programs have been granted the coveted Breakthrough Therapy Designation by the FDA, as well as Rare Pediatric Disease and Orphan Drug designations.

Figure 3: Pipeline (Source: corporate presentation)

Naxitamab is an anti-GD2 antibody with multiple advantages over other GD2 targeting therapies, including modest toxicity (allows for 2.5x greater dose) and shorter infusion time (30

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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