CZO: update from NOBLE CAPITAL.
Ceapro Potential Therapy for Pulmonary Fibrosis in COVID-19 Patients Ceapro expands collaboration with McMaster University. Under the new collaboration agreement, Ceapro will sponsor the development of an inhalable therapeutic based on PGXprocessed yeast beta glucan (PGX-YBG) for the treatment of pulmonary fibrosis in COVID19 patients. In preclinical models, PGX-YBG has shown immunomodulatory properties. Versatility of Ceapro's proprietary PGX Technology. PGX technology utilizes the unique properties of a PGX liquid consisting of pressurized carbon dioxide and ethanol to dry aqueous polymer solutions at mild operating conditions in a spray chamber, which allows the production of ultra thin, high value biopolymers with multiple medical and industrial applications. Transition to become a Biopharmaceutical Company. While continuing to grow its active ingredients base business, Ceapro's management plans to leverage its proprietary PGX technology to develop novel products to pursue nutraceutical, cosmeceutical and biopharmaceutical multibillion dollar markets. Reiterating Outperform Rating. In our view, the potential entry into COVID-19 therapeutic area bodes well for Ceapro's transition into biopharmaceuticals. Through its growing base business, Ceapro has built a strong relationship with global leaders in the industry. Given the value of its PGX technology and lead products, we believe the Company could sign a high value partnership, which could potentially spark a rally in the shares. We are reiterating our Outperform rating and US$1.08 target price. Equity Research Cosme Ordonez, MD, Ph.D., Senior Life Sciences Analyst (561) 998-5487, cordonez@noblelsp.com