Cantor analyst Mara Goldstein raised her price target on NewLink, citing her "increased conviction about" its indoximod drug "and overall IDO program." The analyst thinks that the market is misinterpreting data presented on indoximod at AACR. Specifically, she says that the drug's 12% complete response rate validates it, given its 52% overall response rate and 73% disease control rate. She adds that the drug has better tolerability than the CTLA-4 and PD-L1 inhibitor combination., The analyst believes that this discrepancy could give indoximod "a significant advantage." Goldstein raised her price target on the stock to $32 from $20 and keeps a Buy rating.

Stifel analyst Stephen Willey continues to believe the initial reaction to indoximod/pembrolizumab melanoma data and continued weakness is significantly overdone. Willey said NewLink is the exclusive owner of what is now the most-robust IDO-related data set generated to date and collaborator Genentech/Roche will present the most-comprehensive IDO-related data set across multiple tumor types with immunological correlate data in mid-FY17, which could be a catalyst for a go-forward decision into a large registrational Phase 3 development program. The analyst would like to hear management articulate a clear registrational development plan before assigning a significant value related to indoximod, but even without this, he believes the valuation disconnect remains "egregious" and reiterates his Buy rating and $26 price target on shares.

SunTrust analyst Peter Lawson says that interim data on NewLink's Indoximod is "encouraging." The analyst says that "Indoximod + IO has comparable efficacy to approved IO combos, but is more tolerable," and he expects the data to improve going forward. He adds that the drug's "durability is encouraging." He reiterates a $30 price target and a Buy rating on the shares. ,

Stifel analyst Stephen Willey said NewLink Genetics' (NLNK) combination of indoximod and Merck's (MRK) pembrolizumab in patients with treatment-naive melanoma demonstrated an overall response rate, or ORR, that is "essentially identical" to the previously-reported results from the Incyte (INCY)-Merck study of epacadostat/pembrolizumab. The lower rate of complete responses he doesn't "find terribly surprising" given what is already known about the current indoximod formulation, he tells investors. Willey, who views today's weakness as an interesting buying opportunity ahead of P1/2 data on the atezolizumab + GDC-0919 combination, keeps a Buy rating on Newlink shares.