Canaccord commentCompany Update Orphan drug designation provides more validation for 4050 Incremental positive. ProMetic announced this morning that PBI-4050 has been granted orphan drug designation status for the treatment of Alstrm Syndrome (AS) by the EMEA. As part of the decision, it was determined that the potential to treat AS with 4050 is justified based on preliminary clinical data showing improvement in liver fibrosis on a small number of patients. We believe this announcement provides incremental validation of 4050's efficacy as ProMetic continues to investigate the effects of 4050 on multiple organs in AS patients in an ongoing open label Phase 2 clinical study in the UK. Further, we believe this decision could provide a simplified regulatory pathway for 4050, as well as the potential for a 10-year exclusivity period. Looking ahead, 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 EMEA decision further validates 4050. We believe that the orphan drug status granted by the EMEA is supported by evidence of 4050s ability to reduce liver fibrosis in a small number of patients; we believe this validates our view that 4050 could be having a measurable impact on patients with AS. PBI-4050 puzzle starting to fit together, but a few pieces are still missing. While a few incremental data points for IPF and Alstrm were provided at the Analyst Day, we continue to wait for a broader cross section of results to further support 4050s efficacy. And although ProMetic further elucidated the complex mechanism of action for this drug, investors will have to wait a little longer before many of the finer details are provided. 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. 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. Based on this analysis, we arrive at a target price of C$4.75, which implies a 112% annualized return and continues to support our BUY recommendation.