Guggenheim starts Medicenna Therapeutics with a Buy on MDNA11 potential

As previously reported, Guggenheim analyst Charles Zhu initiated coverage of Medicenna Therapeutics (MDNA) with a Buy rating and C$2 price target. The early clinical-stage biotech is focused on next-gen oncology cytokines, an area where investor sentiment remains low following Phase 3 failures for Nektar’s (NKTR) bempeg, strategic discontinuations and modest single-agent activity from other clinical-stage programs, Zhu said. However, he argues that cytokines "may have yet to be properly explored" and that Medicenna’s MDNA11 may be "a mechanistically rational attempt to capture the efficacy of IL-2 while avoiding immune-related toxicities."