Canaccord still likes PLI and changes nothing in the reportCompany Update Stay on target... ProMetic has announced the filing of the first module of its rolling BLA (Biologics License Application) for plasminogen with the FDA. While this was expected, we believe it represents an important milestone towards the commercialization of ProMetics first major drug product (the first of several, in our view). Further, we believe that the company remains on track to complete this BLA filing in early 2017, which is supported by strong clinical data, Orphan Drug designation, and an Accelerated Approval pathway. As such, we see a strong likelihood that plasminogen could receive a Priority Review from the FDA, which would shorten the review time from ten months to six months. We see a number of catalysts lined up for ProMetic including the filing of the BLA for plasminogen with the FDA (along with the potential for a Priority Review), and more clinical data from PBI-4050 in IPF (expected in February) and Alstrm syndrome over coming months. Investment highlights PPPS is a differentiated technology. Many fractionation processes require cryoprecipitation to remove lipids, which means that the starting material will generally have lower protein concentration compared to PPPS. In the case of the Cohn process, proteins are then extracted from waste streams, which mean that a significant portion of these proteins are discarded. PPPS doesnt need cryo-precipitated plasma, nor does it use any part of the Cohn process (and therefore does not expose the proteins to alcohol); as such, we believe PPPS can achieve higher yields, while being gentler on the targeted protein drug. Partnerships validate ProMetics resin technology. Our view that ProMetic has a differentiated technology is supported by the use of ProMetics filters by GSK, Octapharma, and CSL Behring (a large plasma fractionator competitor), amongst others. In fact, ProMetics resins are used in the manufacturing process of ~14 FDAapproved drugs. Expanding the immediately addressable market for plasminogen. Although congenital plasminogen deficiency is a relatively small market, we believe that there are other opportunities (including Kawasaki disease, severe burn patients, and pediatric indications) that could significantly expand the near-term addressable market for this drug. Wound healing represents a blockbuster opportunity for plasminogen. ProMetic has provided substantial background and clinical data supporting the efficacy of plasminogen in wound healing. Regardless of how small one may view the initial opportunity for plasminogen in congenital deficiency, we believe the blockbuster indication represents significant value driver that cannot be ignored. Ring-fencing the plasminogen opportunity. We believe ProMetics plasminogen market is protected by orphan drug exclusivity in both the US and EU, ProMetics ability to achieve high yields through a superior PPPS process protected by patents and proprietary know-how, as well as patent protection around method of use (particularly for the blockbuster wound healing indication). 4050 has value, which is not reflected in the stock. While one can debate the merits of the 4050 clinical data that has been presented to date (which we believe show signals of efficacy), we believe most observers would be hard-pressed to argue that this drug should represent as little value as is likely being reflected in the stock. Remaining focused on the important value-drivers. At the current share price of ~$1.80, we believe that shares of ProMetic present investors with a compelling opportunity. Based on our sum-of-the-parts analysis, we believe that investors are likely paying for plasminogen only ($1.73 per share), with the remainder of the plasma therapeutics pipeline and PBI-4050 representing a very inexpensive option. Valuation We value ProMetic based on a sum-of-the-parts. We value the resin business using a DCF analysis (8.1% WACC and 2.0% terminal growth), plasma-derived therapeutics with an explicit NPV, and the small molecule pipeline with a pNPV. We have made no changes to our analysis, as the fundamentals for ProMetic remain unchanged. Based on this methodology, we arrive at a target price of C$4.75, which implies a 164% annualized return and continues to support our BUY recommendation.