ProMetic’s deal with ProThera gets thumbs up at Paradigm

Paradigm Capital analyst Christopher Lam likes the partnership ProMetic Life Sciences (TSX:PLI) signed today and expects similar deals will happen in the future.

This morning, ProMetic announced it had entered into a strategic partnership with ProThera Biologics Inc. for the development and commercialization of human plasma-derived interalpha inhibitor proteins.

“We are very pleased to be collaborating with ProThera on the development of IAIP. The combination of our proprietary PPPSTM manufacturing platform and clinical development expertise with ProThera’s world-class understanding of IAIP and unique intellectual property will contribute to the successful development and commercialization of this plasma-derived protein”, said CEO Pierre Laurin. “We look forward to pursuing multiple unmet medical needs to be treated with IAIP by both ProMetic and ProThera”

Lam, who explains that inter-alpha inhibitor proteins play a key role in fighting inflammatory diseases and notes that decreased levels of are correlated with increased mortality in a number of diseases, says there may be multiple applications for the them.

“This deal further demonstrates PLI’s new model for developing novel plasma proteins,” says the analyst. “Signing partnerships with research groups provides ProMetic with world-class research teams that already have IP/patents and body of research that may already show promising therapeutic effects of new drugs. We believe this approach may save time and money, and could accelerate development timelines with regulators. Furthermore, PLI is leveraging its PPPS platform and providing unique value to its partners who do not have a commercially viable solution to manufacture the products they have been researching.We believe this is prudent strategy to and expect more partnerships like this in the future.”

In a research update to clients this morning, Lam maintained his “Buy” rating and one-year target price of $4.60 on ProMetic Life Sciences, implying a return of 57 per cent at the time of publication.