Investing.com — Shares of Replimune Group, Inc. (NASDAQ: NASDAQ:REPL) surged 17% following the announcement that the U.S. Food and Drug Administration (FDA) has accepted the Biologics License Application (BLA) for RP1, the company’s leading oncolytic immunotherapy, for advanced melanoma and granted it Priority Review status. The FDA’s decision, which comes with a Prescription Drug User Fee Act (PDUFA) action date set for July 22, 2025, has sparked optimism among investors and analysts alike.
The BLA submission is based on the primary analysis data of the IGNYTE trial, which evaluated RP1 in combination with nivolumab in patients with advanced melanoma who had not responded to anti-PD-1 therapies. The FDA’s acceptance of the application is particularly significant as the agency has indicated no current plans to hold an advisory committee meeting and has not identified any potential review issues at this stage. This development represents a critical step for Replimune, with a confirmatory Phase 3 trial, IGNYTE-3, already underway involving over 100 global sites.
Sushil Patel, Ph.D., Chief Executive Officer of Replimune, highlighted the importance of this milestone, noting the limited treatment options available for advanced melanoma patients who have previously received an anti-PD-1 containing regimen. The company has also been granted Breakthrough Therapy designation based on the observed safety and efficacy of RP1 in combination with nivolumab in this patient cohort.
Analysts have responded positively to the news, with Barclays (LON:BARC)’ Peter Lawson reiterating an Overweight rating and a $17.00 price target on Replimune stock. Lawson pointed to the potential FDA approval of RP1 as “increasingly de-risked” following the BLA acceptance and priority review. BMO Capital’s Evan Seigerman also raised the price target to $27.00 from $18.00, maintaining an Outperform rating. Seigerman’s comments reflected the sentiment that the acceptance of the BLA has alleviated concerns over the sufficiency of Replimune’s data package, setting the stage for a potential commercial launch in 2025.
Today’s positive share reaction to Replimune’s RP1 BLA acceptance reflects the removal of a key overhang to shares, according to analyst commentary. The market’s response underscores the significance of this regulatory development for Replimune and the potential impact of RP1 on the treatment landscape for advanced melanoma.
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