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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