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Highlights

  • Immutep shares up 3.4% on Monday, outperforming the flat ASX 300 Index.

  • Phase II cancer trial shows promising results in treating soft tissue sarcoma.

  • Stock has surged 33.6% since mid-April, driven by clinical progress and investor optimism.

Shares of clinical-stage biotech Immutep Ltd (ASX:IMM) have jumped 3.4% to 30.5 cents in Monday morning trade, bucking the broader market trend and extending a the recovery for the stock since mid-April.

While the S&P/ASX 300 Index (ASX: XKO) is treading water today, Immutep’s gains bring its total rise to 33.6% since hitting a one-year low of 22.5 cents on 16 April. Over the same period, the ASX 300 has only gained 7.8%.

The  performance follows the company’s announcement of encouraging Phase II clinical trial results for its investigational cancer immunotherapy, eftilagimod alpha (efti). The therapy, tested in combination with radiotherapy and Merck & Co.’s KEYTRUDA (pembrolizumab), met its primary endpoint in the treatment of resectable soft tissue sarcoma (STS)—a rare and aggressive cancer.

According to Immutep, the trial demonstrated a significant increase in tumour hyalinization/fibrosis, an early indicator of treatment success, showing a median rate well above the 35% benchmark and far outperforming the 15% historical rate associated with radiotherapy alone.

Tumour hyalinization/fibrosis at the time of surgery is considered a valuable surrogate endpoint, often correlating with improved overall survival and recurrence-free outcomes in STS patients. These results suggest that the triplet therapy approach could provide a new, more effective option for treating this orphan disease, which affects roughly 13,520 people annually in the U.S., with 5,420 deaths expected in 2025, according to the American Cancer Society.

The study was conducted at the Maria Skłodowska-Curie National Research Institute of Oncology in Poland, the country’s reference centre for STS treatment. Investigators plan to share more detailed results at an upcoming medical conference.

Immutep's breakthrough has caught the attention of investors not just for the promising clinical data, but also for the broader potential of efti, which is being investigated across multiple cancer types. The drug acts as a first-in-class LAG-3 immunotherapy, designed to boost immune system responses against cancer cells.

Despite remaining in the clinical trial phase, Immutep has gained a reputation as a high-potential ASX 300 healthcare stock, particularly for investors seeking exposure to the fast-evolving field of cancer immunotherapy.