Agenus Inc (AGEN): QVT Financial Trims Its Passive Stake as It Gains Value

Agenus Inc (NASDAQ:AGEN) is engaged in development and commercialization of different technologies aimed towards treating cancer and infectious diseases. During last year, the company reported strong financial performance with its revenue for the first nine months jumping to $5.36 million from $2.65 million a year ago, while its net loss narrowed to $0.28 per share from $0.99 per share. Aside from financial situation, the company has also had some positive developments over the last year, such as the submission of regulatory application of a malaria vaccine candidate to the European Medicines Agency by its partner GlaxoSmithKline plc (ADR) (NYSE:GSK). In addition, in December, Agenus Inc (NASDAQ:AGEN) reported that GSK had obtained successful results from its ZOE-50 Phase 3 study of the Shingles Vaccine. Both vaccines contain GSK’s Adjuvant System, AS01, one of the key components of which is QS-21 Stimulon developed by Agenus, with the latter being able to receive royalties from the future sales of the vaccines.

Moreover, as the stock of Agenus Inc (NASDAQ:AGEN) managed to return 90% over the last year, beating the biotechnology industry, which have had an average return of 30% over the last 52 weeks, analysts also seem to be bullish on the company’s prospects as the stock currently sports a consensus ‘Buy’ rating and a price target of $7.60. Last week, HC Wainright, MLV & Co, and Maxim Group, set their price targets for the stock that amount to $6.00, $9.00 and $11.00 with ‘Buy’ ratings.

In this way, even though QVT Financial has trimmed its position in Agenus Inc (NASDAQ:AGEN), it still has reasons to be bullish on the company, although its risk is pretty small, since the position amasses around 1% of its total equity portfolio value.

Disclosure: none