Paradigm Capital analyst Christoper Lam says today’s news from ProMetic Life Sciences (TSX:PLI) is yet another de-risking event for the Quebec-based company’s stock.
This morning, ProMetic released new data from its plasma-derived plasminogen-replacement therapy phase 1 clinical trial for the treatment of congenital plasminogen deficiency. The results, said the company, confirm that the therapy is safe, well tolerated and does not have any serious side effects.
“The pharmacokinetic profile of our plasminogen drug has been established to the point that our team was able to provide the necessary clinical insight to enable the dramatic rescue of the critically ill 20-month-old infant in Germany, announced last month,” said CEO Pierre Laurin. “We are also very pleased to see a second patient immediately respond following infusion of the drug.”
Lam says today’s news should soon bring interest in the form of new partners.
“The successful completion of the Phase I trial marks another de-risking event for what should be PLI’s first plasma drug on the market in 2017,” says the analyst. “The announcement of the remarkable results from the second patient treated with plasminogen are encouraging and there should be little doubt that this drug works for plasminogen-deficient patients and that the likelihood of a successful Phase II/III trial next year is very high. If you include the diabetic foot ulcer market, plasminogen has the potential to easily reach $200–$300M in annual sales within the first few years on the market. With a clear line of sight on potential commercialization within 12–16 months, we expect commercial partnership discussions to intensify.”
In a research update to clients today, Lam maintained his “Buy” rating and on-year target price of $5.50 on ProMetic Life Sciences, implying a return of 82 per cent at the time of publication.
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