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'Hot' Alzheimer's market is promising for biotech with 'novel' drug candidate

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0 Comments| November 22, 2017

In a Nov. 13, 2017 research note, analyst André Uddin with Mackie Research Capital Corp. reported that, as expected, ProMIS Neurosciences Inc. (PMN:TSX) announced $0 revenue for Q3/17. Fully diluted earnings per share was ($0.01), which was in line with Mackie's estimate. At the quarter's end, the biotech had CA$3.3 million in cash and no debt. "Financials are less important as ProMIS is still a preclinical biotech company," wrote Uddin regarding the Q3/17 results.

ProMis, Uddin continued, is developing PMN310 as a "novel Alzheimer's drug candidate based on a new amyloid beta theory—the disease is mainly caused by soluble toxic amyloid beta oligomers."

Mackie expects at least two upcoming catalysts for ProMIS. One is that the firm expects ProMIS "to disclose more preclinical results that should demonstrate a better efficacy and safety profile of PMN310 than Biogen's aducanumab," Uddin stated.

The second is that positive PMN310 clinical data will spur a collaborative deal, perhaps as early as next year. "We have assumed ProMIS to outlicense PMN310 in 2019 for an upfront payment of CA$50M; our numbers are likely conservative," said Uddin.

This compares to the US$205 million that AbbVie Inc. (ABBV:NYSE) paid upfront in October to license a preclinical Alzheimer's drug candidate from Alector LLC (private). Similarly, Biogen Inc. (BIIB:NASDAQ) recently committed an additional US$500 million to its Phase 3 Alzheimer's drug candidate aducanumab.

Mackie is maintaining its Speculative Buy rating and CA$0.50 per share target price on ProMIS, whose stock is currently trading at around CA$0.23 per share.

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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Additional disclosures about the sources cited in this article

Disclosures from Mackie Research, ProMIS Neurosciences Inc., Update, Nov. 13, 2017

RELEVANT DISCLOSURES APPLICABLE TO: PROMIS NEUROSCIENCES INC

1. Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com.

ANALYST CERTIFICATION

Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

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