Gritstone initiated with an Outperform at Evercore ISI

Evercore ISI initiated coverage of Gritstone (GRTS) with an Outperform rating. Merck’s (MRK) announcement last year of an opt-in with Moderna (MRNA) on a personalized cancer vaccine that achieved "dramatic results" in adjuvant melanoma was followed by a breakthrough designation from the FDA and "reinvigorated interest in the entire oncovaccine field," the analyst tells investors. Gritstone has a "high-risk, high-reward" next-gen approach focused on smart antigen selection, T-cell stimulation, and an aggressive development plan that "could leapfrog leaders in the field by showing benefits in cold, late-stage tumors," Evercore contends.