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Biotech Analysis Central Preview Series: Molecular Templates

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This is a preview blog series on what you can expect when subscribing to my "Biotech Analysis Central" service marketplace. For the full article you must subscribe to my service. This is just an intro of two snippets on the research articles that are written. Thus far, there are about 300+ research reports on both both small-cap and mid-cap biotech stocks with full analysis of the pipeline, catalysts, financials, and clinical trial analysis. If you want to read more then please subscribe to my marketplace service. As always I offer a 2-week free trial just to show you how helpful my service is. You can cancel anytime before the 2-week free trial is up and never be charged a dime.

First Section Of Marketplace Article (This article piece was originally written on December 7, 2020)

The next article I wanted to discuss for the "Biotech Analysis Central Stock Insight Series" is a biotech by the name of Molecular Templates, Inc. (MTEM). The reason why I want to go over this biotech next is because it will have additional data to report from its phase 1 study using its drug MT-5111, which is being developed to treat HER2 expressing solid tumors. This data is expected any day now in Q4 of 2020 and could shed light on whether or not this product is suited to move forward towards phase 2 clinical testing. This is a 2nd generation ETB inhibitor drug from the company. In essence, it is designed to overcome tumor resistance of other HER2 tumor therapies. If proven to work, it's possible it could compete well against other agents. The lifeline of this company lies with its main drug MT-3724, which is being developed to treat B-Cell malignancies. I consider this to be the main drug of the pipeline, because it has potential to obtain approval earlier than expected. Meaning, that MT-3724 is currently being explored in a phase 2 study but may potentially turn into a pivotal one depending upon the data. However, for the time being there is a partial clinical hold which may or may not be lifted. If the hold is lifted, then it is very good news. There are also two other combinations being explored for MT-3724. One is a phase 2 targeting DLBCL in combination with GEMOX and the other phase 2 is using the drug in combination with Lenalidomide. There is actually even a partnered phase 1 study with Takeda Pharmaceuticals (OTCPK:TKPHF), which is using TAK-169 to treat patients with Multiple Myeloma (MM). Not only that, but there is a preclinical program to develop a PD-L1 drug as well to treat patients with solid tumors. This drug is known as MT-6402. With all this potential, I believe this is a good speculative biotech to look into. The most important item to watch out for would be the partial clinical hold currently placed on MT-3724.

Conclusion Of Marketplace Article

The Final Verdict is that Molecular Templates is a good speculative biotech to look into. I think it is worth it for a trade based around the catalysts. It may not be a hold until the situation with MT-3724 is cleared up. As I stated above, if the FDA does remove the partial clinical hold then it becomes a long-term hold. That's because the data to date for this particular drug has been good. All that remains now is the investigation surrounding the patient that had a grade 5 CLS. There are several other candidates in the pipeline which act as backup. Those are currently being explored in a phase 1 study though. That means it will take time to ramp up the other 2nd generation and 3rd generation ETB drugs. For instance 2nd generation ETB MT-5111 if it continues to advance in the clinic targets the solid tumor market, which is good news. The estimated global solid tumor cancer treatment market size could be worth $424.6 billion by 2027. Then, you have the TAK-169 drug which is being partnered with Takeda. This particular drug targets the MM market, which is estimated to be worth $27.8 billion by 2027. I think that Molecular Templates holds potential. Even if MT-3724 was to get axed the next generation drugs appear to be more solid options in terms of not creating such an unwanted immune response. If clinical trials for several of the candidates prove themselves, then this stock has a chance to trade much higher.

Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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