Our primary play in the cancer immunotherapy field, Argos Therapeutics (ARGS), issued its third quarter results this morning that were in line with expectations. Shares of ARGS were down slightly in early trading this morning. The company reported a net loss of $0.32 per share compared a loss of $0.97 in the same quarter last year, and showed twice as much total income so far in 2016 compared to the first nine months of 2015. R&D (research and development) expenses for the quarter were $9.3 million versus $17.2 million during the same quarter last year, and have totaled $28 million so far this year compared to $48.1 million last year.

With the operating results coming in where they were expected to be at this point, attention has turned to the much-anticipated outcome of the company’s trial study of its advanced renal cell drug treatment, which company CEO Jeff Abbey addressed thusly: “Our Phase 3 ADAPT study of AGS-003 in advanced renal cell carcinoma continues to progress and we look forward to the next Independent Data Monitoring Committee meeting in February, followed by anticipated top-line data in the first half of 2017.”

That statement doesn’t tell us much, so it looks like we’ll have to wait a few a weeks to see if Argos offers up any more details when they host an “Investor Day” on December 7^th in New York City. According to the company’s press release accompanying today’s quarter results, “Argos’ management will review the scientific, clinical and commercial opportunity behind the company’s lead product candidate, AGS-003, which is currently being evaluated in the pivotal ADAPT Phase 3 clinical trial for the treatment of advanced renal cell carcinoma. Gerald Linette, MD, PhD, chief medical officer for cancer immunotherapy at the University of Pennsylvania Abramson Cancer Center, and Christopher Wood, MD, FACS, professor of urology, division of surgery at the University of Texas MD Anderson Cancer Center will join management in discussing AGS-003 and the treatment landscape.”

Of course, the other “x factor” that we cannot yet quantify is the extent to which the incoming Trump administration will be perceived as friend or foe to the healthcare sector, and how that might impact equity investment in companies such as Argos. Until we know more, we continue to believe that Argos is a likely takeover target in 2017 if the AGS-003 trial is successful so we maintain our buy recommendation on ARGS up to $8.