RE:Bloom Burton and Co.: Hold rating and $2.00 target for PLIthe anal yst who wrote this is David Martin he graduated from UWO all his credentials are on linkedin
https://ca.linkedin.com/in/david-martin-23620b34
another report just after the anal yst day in ny which also have a very negative tone
https://www.bloomburton.com/research/PLI20161122.pdf
imo with all the negative comments from this surprised there call is not sell....crazy we need fred to clarify all this asap
stockmaster989 wrote:According to Bloom Burton and Co.
https://www.bloomburton.com/research/PLI20161130.pdf
ProMetic Life Sciences Inc. (TSX:PLI, C$2.46)
Rating: HOLD
Risk: Above Average
12-month Price Target: $2.00 (was $2.30)
Missing Patients and PBI-4050 Structure.
Last week following ProMetic’s Analyst Day, we reiterated our opinion that the market is overvaluing ProMetic: www.bloomburton.com/research/PLI20161122.pdf. This is based on our view that numerous pre-clinical PBI-4050 data releases helped boost PLI stock starting in early 2013, however, the recent slate of phase 2 trials prove little about the drug, in our opinion.
Recent press releases touting activity are drawing on results that may represent nothing more than placebo effect or artefact. We take this stance because we believe that trials were too small, too short, without placebo controls, and with endpoints that may be influenced by subjective factors.
We believe the company missed an opportunity at the Analyst Day to provide additional details which could have helped further the understanding of PBI4050.
In our opinion, a convincing, novel, differentiated and well-described mechanism has not yet been elucidated for PBI-4050, and we find this atypical for a biotech drug at this stage of development.
Digging deeper, it also appears that groups of patients may have been excluded from several data presentations, which could lead to unwarranted enthusiasm for the results.
On a separate note, we believe that PBI-4050 may be an analogue of phenylacetic acid – implications discussed on the next page.
We believe it is important for Bloom Burton and investors to gain a fuller picture of PBI-4050 results and mechanism, to properly assess risk/reward, especially in the context of ProMetic’s $1.5 B market cap. Until key gaps are filled, we are discounting our valuation of PBI-4050 by 50%, which lowers our PLI 12-month target price to $2.00 (was $2.30). Maintaining HOLD (Above Average risk).
Missing Patients
As we have previously noted, data for ~30 PBI-4050-treated IPF patients was super-imposed on results for 500+ patient phase 3 registration trials for pirfenidone and nintedanib, which is scientifically misleading in our opinion. Additionally we note that results for approximately 1/3 of PBI-4050-treated IPF patients were left out of the graphic. For the metabolic syndrome and type 2 diabetes study, HbA1c changes for 17 patients were presented at the Analyst Day, even though the trial ended in October with 24 patients. Alstrm Syndrome results also appear to have excluded at least one patient (data was presented for patients 1-5 and 7). We have asked the company for an explanation re: the possible omissions, but have not yet heard back.