Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

TELESTA THERAPEUTICS INC T.TST

"Telesta Therapeutics Inc is a biopharmaceutical company. The Company is engaged in the research, development, manufacturing and commercialization of human health products and technologies."


TSX:TST - Post by User

Post by TheRock07on Aug 24, 2016 7:51am
297 Views
Post# 25170843

Beacon Report on PLI...$10 target

Beacon Report on PLI...$10 target

buy low, sell high

this is when u buy;) Beacon Update
ProMetic Life Sciences (PLI - T)
August 18, 2016

Doug Cooper, MBA

(416) 643-3863

dcooper@beaconsecurities.ca

ProMetic recently reported Q2/FY16 results. From a pure financial

perspective, we primarily pay attention to the company’s cash

position and secondarily to product sales and their ability to reduce

the burn rate (note that product sales to 3rd party pharma play

essentially no role in our valuation). From that perspective, period

ended cash was $64 million, the highest in the company’s history,

while product sales were weaker than expected, implying the burn

rate was higher than our forecast at ~$7.5 million/month.

At this level of R&D spend, and with the assumed exercise of $21

million of in-the-money warrants that expire in February 2017,

ProMetic has enough cash to fund itself to mid-2017. We believe

there is a strong possibility that the R&D development, both on its

protein and 4050 segments, could be advanced enough to

conclude favourable partnerships deals with upfront cash to fund

the company in a non-dilutive manner.

In our view, investors should be focused on 2 primary events:

a) Plasminogen (Pg) Potential to be a Blockbuster Drug: PLI

should finish its clinical trial program by the end of October

and file its BLA by year-end, which would set-up

commercialization of the product (for deficiency) by mid-

2017. ProMetic is the only company in the world that can

produce Pg in volume with high yields. Furthermore, ongoing

R&D has uncovered numerous other indications, all having to

do with healing, that could make this a blockbuster (ie. over

US$1 billion in sales) drug. We believe PLI’s commercial focus

will be within hospital settings while indications such as

diabetic wound healing (US$3+ billion opportunity) would be

partnered with companies such as Smith & Nephew (SN-US,

not rated), which has strong distribution networks outside of

hospitals to service patients. Once Pg is approved by the FDA,

we believe 3 things could/will happen: a) PLI will start to

generate meaningful revenue b) doctors can start using it “off

label” opening-up other indications and c) with risk profile

dramatically reduced, probability of near-term partnership for

distribution outside of hospitals is increased dramatically. With

Pg on cusp of commercialization, multiple indications, an

essential monopoly and partnership potential, we believe this

protein alone could be worth multiples of the current stock

price.

b) 4050 Clinical Trial Results: We anticipate Phase 2 results from

PLI’s ongoing Alstrom trial before year-end. Given this is

essentially fibrosis of multiple organs, if the drug shows positive

efficacy (it has already demonstrated multiple times its safety

profile), we believe the market should start to discount some

success of the drug. In our opinion, at current prices, the

market is giving minimal, if any, value to 4050.

While ProMetic has other milestones (ie. ivig trials, AAT and C1 IND

filings, IPF, CKD, MS and diabetes trials), we believe the above two in

particular have the ability to drive significant shareholder returns in

the near-term. Maintain Buy and $10.00 target price.

Read more at https://www.stockhouse.com/companies/bullboard#So5EBOkwgMRc4Xc7.99
<< Previous
Bullboard Posts
Next >>