In a July 18 publication, Research Capital Corp. Healthcare Analyst Andre Uddin, Ph.D. commented that recently released topline data from clinical-stage pharmaceutical development and drug repurposing company Algernon Pharmaceuticals Inc.'s (AGN:CSE; AGNPF:OTCQB; AGN0:XFRA) Phase 2a ifenprodil study for use in treatment of idiopathic pulmonary fibrosis (IPF) in patients with chronic cough hit its mark.
Research Capital stated that the initial data should have investors and patients breathing easier after the Phase 2a study of ifenprodil (NP-120) successfully hit its primary endpoint which shows promising initial efficacy.
The analyst explained that the Phase 2a trial enrolled a total of 20 IPF patients with chronic cough. Patients in the study were administered three daily doses of 20mg ifenprodil over a period of 12 weeks. The primary endpoints were established to measure reduction in 24-hour and waking cough counts for the cough indication and forced vital capacity (FVC) of the lungs for the IPF indication. Other key secondary endpoints included biomarkers of fibrosis.
According to the analyst, the IPF data achieved one of its primary endpoints as 13 (65%) of the 20 participants enrolled in the trial were shown to have had statistically significant improvement in FVC throughout the 12-week treatment period.
Research Capital mentioned that in the Phase 2 trial, ifenprodil did not meet its primary endpoint for the IPF with chronic cough part of the study but did return some positive findings as 35% of subject patients did achieve the predetermined endpoint identified as a 50% reduction in the average number of coughs per hour over 24 hours. On a bright note, the trial was able to meet a key secondary goal of reduction in actual cough counts during the 12-week evaluation period with subjects experiencing a 24% (mean) and 38% (median) reduction in 24-hour cough count at week 12. Importantly, 75% of those in the trial saw solid improvements in their cough over 12 weeks.
Research Capital Corp. stated that Algernon presents an opportunity for a high-risk/high-reward investment as it believes that the company is incredibly undervalued since it currently has a market cap of just CA$6 million. The research firm noted that considering ifenprodil's well-established safety profile and the newly released positive topline data from the Phase 2 IPF study, Algernon is headed in the right direction in its efforts to develop a therapeutic treatment for an orphan indication that offers a very large market opportunity.
Research Capital stated in the report that, "We expect AGN to trade up on these positive results and we recommend investors with a higher risk tolerance to aggressively purchase the stock."
The report described IPF as a scarring of the lungs with unknown (idiopathic) origins. The disease causes progressive loss in the lungs ability to absorb oxygen which often leads to respiratory failure and eventually death. IPF usually occurs in individuals over 50 years old and may be linked to cigarette smoking, genetics and environmental factors.
Algernon Pharmaceuticals is a clinical-stage pharmaceutical development company based in Vancouver, B.C. that concentrates its activities on finding new uses (drug repurposing) for small molecule drugs. The company typically focuses on medicines that were approved in countries outside of the U.S. that are off-patent and show promise for use in new indications in the U.S. market.
Research Capital Corp. advised that it is maintaining its "Speculative Buy" rating and CA$25.00 price target on Algernon Pharmaceuticals Inc. The research firm indicated that it arrived at its target price by employing a probability-adjusted net present value (NPV) analysis of ifenprodil.
Algernon Pharmaceuticals Inc. shares trade on the Canadian Securities Exchange under the symbol "AGN" and last closed for trading at CA$3.20 on Tuesday, July 19, 2022. The company's shares also trade under the ticker symbol "AGNPF" on the OTCQB Market and "AGW" on the Frankfort Stock Exchange.
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Disclosures for Research Capital Corp., Algernon Pharmaceuticals Inc., July 18, 2022
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