" We're CALM Yet Excited; Interesting Times Coming; Reiterate Buy", page-2

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"Impact

With the final CALM results in hand and the broad potential profile of CAVATAK, we believe positioning for the company is strong. CALM represents an important springboard, in our belief, to the planned and ongoing clinical programs as well as potential business development opportunities. Bolstering this thesis, we believe, is the recent success of Amgen's (AMGN-NC) talimogene laherparepvec (T-Vec) at an FDA AdCom and an October 27, 2015 PDUFA date. We believe T-Vec's AdCom success provides therapeutic approach validation for what we consider to be a differentiated product in the form of CAVATAK. Visibility should be further increased June 13-16 at the International Conference on Oncolytic Virus Therapeutics. At this conference we expect to receive further tumor microenvironment data, an update from the STORM study, updated preclinical checkpoint combination data and an update from the CANON study. These updates point to the potential ability to support the three dosing modalities of CAVATAK (intralesional, systemic and intravesicle) relative to only the intralesional potential of T-Vec. Recall that both clinical and preclinical data suggest a two-pronged mechanism of action including 1) direct killing of the infected cell through the virus' inherent "lytic process" and, 2) an adaptive immune response caused by the breaking apart of tumor cells and antigen presentation. We believe that this increased visibility on oncolytic viruses also significantly increases the partnering potential for CAVATAK, which is being supported by a broad clinical program."