Canaccord target revised to $4.75 Raising Target Price
How do you like me now? PBI-4050 shows a clear
signal of efficacy
Investment Recommendation
ProMetic has announced positive data from its Phase II open-label study in patients
with metabolic syndrome and type II diabetes, which have exceeded our expectations.
The study demonstrated a statistically and clinically significant improvement in glycemic
control in only 11 patients (HbA1c decrease of -0.6, p=0.03), based on a per protocol
analysis. Following these results, ProMetic has closed patient enrollment in this study
and plans to transition to a pivotal placebo-controlled study in type II diabetes.
The stock has had a strong run into this data (up 20.0% in less than a week); we
continue to be very constructive on the name. We expect that some investors are likely
to ‘sell on news’, which could result in some weakness today; however, we believe that
investors focused on the value of the plasma-derived therapeutics business could now
be looking to get into the stock without the fear of getting run over by this catalyst.
We expect that this evidence of efficacy for ‘4050 should unlock significant value for
shareholders, and we are therefore raising our target price to C$4.75 (from C$4.25).