Promis Neurosciences (TSX:PMN) is sitting on an Alzheimer’s drug candidate that could prove to be best-in-class, says Mackie Research Capital analyst André Uddin.
In a research report to clients today, Uddin inititated coverage of Promis Neurosciences with a “Speculative Buy” rating and one-year price target of $0.50, implying a return of 104 per cent at the time of publication.
Uddin notes that 99 per cent of Alzheimer’s drug candidates have failed, but Promis’s PMN310 has a chance because it is centered around new information about the disease and new methods.
“Promis’ lead program PMN310 is a preclinical stage, novel mAb being developed to modify Alzheimer’s disease (AD),” the analyst notes. “The development of PMN310 is based on a new AD theory – the disease is primarily caused by toxic beta amyloid (Aβ) oligomers (also known as prions) whereas the classic AD theory argues Aβ plaques are the primary cause. Discovered via Promis’s high throughput computational modeling platform, PMN310 is engineered to selectively target toxic Aβ oligomers without binding to Aβ monomers or plaques. The selectivity of PMN310 for Aβ oligomers is expected to result in more effective targeting of oligomers and greater efficacy.”
Uddin notes that there is already some promising developments around PMN310.
“In pre-clinical studies with mice, PMN310 demonstrated efficacy in preventing loss of short-term memory caused by toxic Aβ oligomers (Figure 2). When mice were injected with toxic Aβ oligomers, they lost their ability to discriminate between known and novel objects and spent equivalent amount of time exploring both. PMN310 completely protected the ability of discrimination in these oligomer-injected mice and maintained their short-term memory.”
If successful, Uddin thinks PMN310 would launch in various markets in 2026 and 2027. He sales estimates (all figures CDN) for the treatment are zero for both 2017 and 2018, and $2.5-million in both 2019 and 2020. He then expects the company’s topline will ramp up, achieving $$27.5-million in 2021, and then ramping to $517.6-million in 2028 and $638.5-million in 2029.