Immutep : Maxim Group - The Case for LAG-3 is Building

EQUITY RESEARCH

COMPANY UPDATE

Biotechnology

Immutep Limited

Buy

IMMP - NASDAQ			September 20, 2021	The Case for LAG-3 is Building
Intraday Price 9/20/21				$3.65	Summary
Rating:					Buy	•	Could a LAG-3 be the next approved checkpoint? This morning, Bristol-
12-Month Target Price:					$8.00
52-Week Range:				$1.53 - $7.95		Myers Squibb (BMY - NR) announced that the FDA had accepted Bristol's
Market Cap (M):					278.1		Biologics License Application (BLA) for LAG-3 (relatlimab) / PD-1 (nivolumab)
Shares O/S (M):					76.2		combination as treatment for patients with metastatic melanoma for Priority
Float:					NA		Review. PDUFA is March 19, 2022.
Avg. Daily Volume (000):				341.5	•	This follows shortly after an update on the Phase 2/3 RELATIVITY-047 study
Debt (M):					$6.2		at this year's ESMO Congress (being held from Sept. 16-21), where prolonged
Dividend:					$0.00
					benefit was reported with relatlimab/nivo combination vs. nivo monotherapy
Dividend Yield:					0.0%
					(see details below).
Risk Profile:					Speculative
				•	Recall, LAG-3 as a checkpoint has generated significant interest since
Fiscal Year End:					June
								Bristol's initial RELATIVITY data release on March 25, 2021.
	Total Expenses ('000)		•	What about Immutep's eftilagimod ('efti')? Immutep currently has the most
	2021A		2022E	2023E		LAG-3 products (four in total) and is the only company exploring the utility
H1			of LAG-3, both in immune-oncology and in autoimmune disease. The lead
9,707		9,399	9,948A
		asset, efti, has a differentiated mechanism of action, as a soluble LAG-3 fusion
H2	7,462		9,799	10,777
FY	17,169		19,198	20,726		protein that acts as an antigen-presenting cell (APC) activator (vs. a direct
								inhibitor). To date, efti has demonstrated activity and a good safety profile
	IMMP							in multiple trials (such as TACTI-002 currently underway in combination with
							Merck's {MRK - NR} Keytruda).
6	Price (USD)	Source: Factset	Volume (MM) 300
•	Conclusion. Bristol's LAG-3 is set for regulatory review, ahead of the
5						250		checkpoint TIGIT, which may come as a surprise to some. While Bristol's
						200		relatlimab may be the first-to-market, there is room for multiple LAG-3 players
4							(just like PD-1/PD-L1s), in our view.
						150	Details
3						100
							RELATIVY-047 study is a	positive readthrough for	efti. The	Phase	2/3
2						50
						RELATIVITY study (N=714)	is evaluating fixed dose	relatlimab	(anti-lag	3)
1						0		in combination with anti-PD-1 antibody, nivolumab (nivo), in 1L metastatic or
	Nov-20Jan-21Mar-21	May-21	Jul-21	Sep-21		unresectable melanoma patients. The trial design is also stratified by both PD-L1
	Price		Volume				and LAG-3 expression. Data from the RELATIVITY study reported at the 2021 ASCO
								Annual Meeting reported significant PFS (progression-free benefit) benefit seen with
Immutep is listed on the ASX (IMM) and with ADR's traded		the combination of relatlimab + nivo (n=355) over nivo monotherapy (n=359): 10.12
	months vs. 4.63 months. (HR=0.75). There were also no significant safety signals
on NASDAQ (IMMP). 1 ADR= 10 shares of common stock.
	(SAEs Grade 3/4 of 18.9% observed with combo vs. 9.7% with monotherapy). On
								efficacy, 1-year PFS of relatlimab/nivo (47.7%) was numerically lower to cross trial to
								CheckMate-067 comparison of nivo/ipi (50%). On safety, the combo demonstrated
								a significantly better safety profile cross trial (18.9% vs. 59%, respectively). At this
								year's ESMO Congress (Sept. 16-21), Bristol reported additional efficacy results.
								Prolonged benefit was observed with combination treatment vs. single agent nivo.
								The combination led to a longer treatment-free interval (TFI), as well as a reduction
								in risk of progression or death following the next line of therapy. Specifically, patients
								that received the doublet and discontinued the treatment (n = 167) experienced a
								longer TFI vs. single-agent nivolumab (n = 151): median TFI of 3.22 (range, 0.1-30.4)
								vs. 1.41 (range, 0.1-25.6), respectively. Relatlimab plus nivolumab also reduced the
								risk of progression following the next line of systemic therapy (PFS2). The median
								PFS2 in the doublet arm had not yet been reached while the single therapy arm was

20.04 months. While we await overall survival (OS) data, we believe the positive combination broadly validates LAG-3 as a checkpoint target and continues to build the case for LAG-3 and for Immutep's eftilagimod. With a PDUFA data of March 19, 2022, LAG-3 appears to be on the road to becoming the third approved checkpoint.

Naureen Quibria, Ph.D.	Near-termcatalysts for Immutep. While multiple operational updates are expected
[phone]	(such as trial initiations and recruitment updates), we are watching for data readouts
[e-mail]	on:

SEE PAGES 3 - 4 FOR IMPORTANT DISCLOSURES AND DISCLAIMERS

Immutep Limited (IMMP)

1. AIPAC final overall survival (OS) data - multicenter, placebo-controlled, randomized trial (N=227) of efti in combination with chemotherapy in HER2-/ HR+ metastatic breast cancer patients; final OS data is expected in 2H21.
2. TACTI-002(KEYNOTE-798) - the ongoing Phase 2 study is evaluating efti with pembrolizumab in 1L non-small cell lung cancer (NSCLC), 2L in NSCLC in PDX-refractory patients, and 2L head and neck squamous cell carcinoma (HNSCC); potential update in 2H21.

Company overview: Immutep is a clinical-stage biotechnology company that is focused on developing LAG-3 both as an immune stimulator and an immune suppressor, for cancer and for autoimmune diseases, respectively. The company's lead product candidate is eftilagimod alpha (efti), a soluble LAG-3 fusion protein, that is being evaluated in combination with chemotherapy or immune therapy for multiple advanced cancers. The company also has licensing deals with large pharma for additional LAG-3 products: GSK'781 with GlaxoSmithKline (GSK - NR) and LAG525 with Novartis (NVS - NR).

Maxim Group LLC

2

Immutep Limited (IMMP)

DISCLOSURES

Immutep Limited Rating History as of 09/16/2021

powered by: BlueMatrix

	Buy:$4.00		Buy:$2.00		Buy:$4.00		Buy:$8.00
	07/31/19		04/06/20		11/11/20		12/10/20
$10
$8
$6
$4
$2
$0
Oct		18		Jan		19		Apr		19		Jul		19		Oct		19	Jan		20	Apr		20	Jul		20	Oct		20		Jan		21	Apr		21	Jul		21
																					Closing Price					Target Price

Maxim Group LLC Ratings Distribution		As of: 09/19/21
			% of Rating for which Firm
		% of Coverage	Provided Banking Services
		Universe with Rating	in the Last 12 months
Buy	Fundamental metrics and/or identifiable catalysts exist such that we	87%	53%
expect the stock to outperform its relevant index over the next 12 months.
Hold	Fundamental metrics are currently at, or approaching, industry averages.	13%	44%
Therefore, we expect this stock to neither outperform nor underperform
	its relevant index over the next 12 months.
Sell	Fundamental metrics and/or identifiable catalysts exist such that we	0%	0%

expect the stock to underperform its relevant index over the next 12 months.

*See valuation section for company specific relevant indices

I, Naureen Quibria, Ph.D., attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report.

The research analyst(s) primarily responsible for the preparation of this research report have received compensation based upon various factors, including the firm's total revenues, a portion of which is generated by investment banking activities.

Maxim Group makes a market in Immutep Limited

Maxim Group expects to receive or intends to seek compensation for investment banking services from Immutep Limited in the next

3 months.

IMMP: For Immutep, we use the BTK (Biotechnology Index) as the relevant index.

Valuation Methods

IMMP: We forecast sales for efti in metastatic breast cancer in 2025 (EU, US) and in 2027 (China), in non-small-cell lung cancer in 2025 (EU, US), and in head and neck in 2024 (EU, US). We assume royalty revenues for LAG525 in 2025 (EU, US) and for GSK'781 in 2027 (EU, US). We use a 30% discount rate and attribute equal weighting to our FCF, discounted EPS and SOTP to derive our price target.

Price Target and Investment Risks

IMMP: Aside from general market and other economic risks, risks particular to our price target and rating for Immutep include: (1) Development-To date, LAG-3 checkpoint modulators have not been approved; (2) Regulatory-The company's ongoing and future studies may not be sufficient to gain approval; (3) Commercial-The company lacks commercial infrastructure to support a launch if approved; (4) Financial-The company is not

Maxim Group LLC

3

Immutep Limited (IMMP)

yet profitable and may need to raise additional capital to fund operations; (5) Collaborative-The company has ongoing collaborations with large pharmaceutical companies who could back out of the partnerships, setting back development on product lines and increasing costs; (6) Foreign exchange fluctuations as the company is domiciled in Australia; (7) High volatility of the company's stock price.

RISK RATINGS

Risk ratings take into account both fundamental criteria and price volatility.

Speculative - Fundamental Criteria:This is a risk rating assigned to early-stage companies with minimal to no revenues, lack of earnings, balance sheet concerns, and/or a short operating history. Accordingly, fundamental risk is expected to be significantly above the industry. Price Volatility:Because of the inherent fundamental criteria of the companies falling within this risk category, the price volatility is expected to be significant with the possibility that the investment could eventually be worthless. Speculative stocks may not be suitable for a significant class of individual investors.

High - Fundamental Criteria:This is a risk rating assigned to companies having below-average revenue and earnings visibility, negative cash

flow, and low market cap or public float. Accordingly, fundamental risk is expected to be above the industry. Price Volatility:The price volatility of companies falling within this category is expected to be above the industry. High-risk stocks may not be suitable for a significant class of individual investors.

Medium - Fundamental Criteria:This is a risk rating assigned to companies that may have average revenue and earnings visibility, positive cash flow, and is fairly liquid. Accordingly, both price volatility and fundamental risk are expected to approximate the industry average.

Low - Fundamental Criteria:This is a risk rating assigned to companies that may have above-average revenue and earnings visibility, positive cash flow, and is fairly liquid. Accordingly, both price volatility and fundamental risk are expected to be below the industry.

DISCLAIMERS

Some companies that Maxim Group LLC follows are emerging growth companies whose securities typically involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Maxim Group LLC research reports may not be suitable for some investors. Investors must make their own determination as to the appropriateness of an investment in any securities referred to herein, based on their specific investment objectives, financial status and risk tolerance.

This communication is neither an offer to sell nor a solicitation of an offer to buy any securities mentioned herein. This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or disclosed to another party, without the prior written consent of Maxim Group, LLC ("Maxim").

Information and opinions presented in this report have been obtained or derived from sources believed by Maxim to be reliable, but Maxim makes no representation as to their accuracy or completeness. The aforementioned sentence does not apply to the disclosures required by FINRA Rule 2241. Maxim accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Maxim. This report is not to be relied upon in substitution for the exercise of independent judgment. Maxim may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views and analytical methods of the analysts who prepared them and Maxim is under no obligation to ensure that such other reports are brought to the attention of any recipient of this report.

Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimates contained in this report reflect a judgment at its original date of publication by Maxim and are subject to change without notice. The price, value of and income from any of the securities mentioned in this report can fall as well as rise. The value of securities is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities. Investors in securities such as ADRs, the values of which are influenced by currency volatility, effectively assume this risk. Securities recommended, offered or sold by Maxim: (1) are not insured by the Federal Deposit Insurance Company; (2) are not deposits or other obligations of any insured depository institution; and (3) are subject to investment risks, including the possible loss of principal invested. Indeed, in the case of some investments, the potential losses may exceed the amount of initial investment and, in such circumstances, you may be required to pay more money to support these losses.

ADDITIONAL INFORMATION IS AVAILABLE UPON REQUEST

Maxim Group LLC

4

Corporate Headquarters

New York City	Miami Beach
300 Park Ave., 16th Floor	555 Washington Ave., Suite 320
New York, NY 10022	Miami Beach, FL 33139
Tel: [phone]	Tel: [phone]
Capital Markets/Syndicate: 212-895-3695	Global Equity Trading: 212-895-3623
Corporate Finance: 212-895-3811	Institutional Sales: 212-895-3873
Corporate Services: 212-895-3631	Institutional Sales Trading: 212-895-3873
Equity/Options Trading: 212-895-3790	Portfolio/Transition Trading: 212-895-3567
Equity Research: 212-895-3736	Prime Brokerage: 212-895-3723
Fixed Income Trading: 212-895-3875	Wealth Management: 212-895-3624

Woodbury, Long Island	Red Bank, New Jersey
100 Crossways Park Drive West	246 Maple Avenue
Suite 207	Red Bank, NJ 07701
Woodbury, NY 11797	Tel: [phone]
Tel: [phone]

West Palm Beach, Florida	San Rafael, California
105	South Narcissus Avenue	4040	Civic Center Drive
Suite 222	Suite	200
West Palm Beach, FL 33401	San Rafael, CA 94903
Tel:	561-465-2605	Tel: [phone]

Aventura, Florida	Stamford, Connecticut
20801 Biscayne Blvd	700 Canal Street
Suite 432 / 433	Stamford, CT 06902
Aventura, FL 33180
Tel: [phone]