RE:Some more positive pressHits the nail on the head.
Some of these biotech’s could very well be the BioNTech of the future.
One I found is Sernova Corp. They date back to the mid 2000’s, so as a team they have arguably well over 15 plus years focused on RM technology. As a very focused biotech that knew they had a long path to follow, they have stuck with it and the results they have attained so far are not fairly represented in their current market cap. They have a high value lead program on Diabetes, that has shown tremendous results all the way through and into to a Phase I/II study currently occurring at the University of Chicago for which positive interim safety and efficacy data has recently been released as presented by the principal investigator at the 2021 ASTS (American Society for Transplant Surgeons) Winter Symposium on January 15, 2021. In this disease indication and using RM, Sernova is on the low end of the scale with respect to its’ market cap verses their main competitors whom sport far less results and little to no clinical data. So, one would ask why the huge spread on market cap? (Sigilon US$1.4bln vs. Sernova US$307M). The reason is that Sernova’s market cap is based on a share price on the Canadian TSX Venture exchange. Traditionally this exchange was, and remains, largely resource based with some technology companies, but very few biotech’s, and attracting a sophisticated biotech investor base is very difficult.
The ability to attract US based individual investors is limited on this exchange and US institutional groups often cannot participate due to their firms’ charters. Not to mention that the US has a plethora of biotech’s to invest in. So, one might ask why am I and Prescient Reports are so bullish on this company? Consider these three very strong markers; 1) Sernova’s data is solid and on track. 2) FDA guidance along the way has been very positive. 3) They have executed an ongoing successful Phase I/II safety/efficacy study of their cell pouch technology with therapeutic cells which is demonstrating clinical benefit in patients, a critical step in making RM for this disease a reality. In looking at comparables in this space, again, I sight Sigilon. This US based RM player just recently hit the NASDAQ public market in December 2020. They’ve yet to start a clinical study and have only recently started to enroll patients in a Phase 1 on one indication. Yet the team gained the interest of some US biotech bankers, led by Morgan Stanley, that propelled this new entry to a market cap of US$1.42bln2 in less than a month! Sernova tracks very well with Sigilon, but comes in at a market cap of CDN$149M. Sernova is clearly a clinical stage biotech with very positive data that I believe will position them as a leader in the RM space.
With the likes of Morgan Stanley, Jefferies, Barclays and other top banking firms, backing a RM biotech who has yet to have clinical data and to drive them to a US$1.4bln market cap, indicates that those firms’ analysts are looking to the RM space to make major moves thru 2021 and beyond. One ponders, that if a relatively unknown German biotech such as BioNTech can achieve the kind of recognition they did, does the data on Canada’s Sernova suggest that they may be poised to do the same within the RM space?