Vancouver company’s pipeline of drugs and lab technology set it apart with competition, says analyst
Investing within biotechnology stocks can be very risky, but an researcher at Raymond James has discovered one Canadian firm with enough irons in the fire to warrant attention from shareholders.
In an extensive recent research notice, analyst David Novak initiated protection on Vancouver-based Zymeworks Inc., dubbing it “mom of all biotechnology” plays in Canada involving early-stage companies.
Novak said Zymework’s pipe of drugs in discovery or perhaps development and its advance lab technology are what differentiate it from the competition. He has got set a one-year target tariff of US$18 per share.
Founded in ’03, Zymeworks raised US$58.5 million included in the AprilIPO at US$13 per share. But shares have since dropped as low as US$6.25 in Los angeles, before rebounding to around US$11.90, when it currently trades. It is usually listed in Toronto.
Zymeworks’ main product or service, ZW25, is being tested in phase 1 clinical trials for the therapy for breast cancer. By binding in addition to removing proteins called man epidermal growth factor receptor A pair of (HER2), preclinical trails have shown anti-tumour activity.
Raymond Adam said in time, ZW25 could have the possible to compete with Herceptin and Perjeta, not one but two HER2 therapies that last year created US$7.2 billion and US$2.About three billion, respectively.
Its second foremost product, ZW49 is still in the preclinical period but has also shown chance of treatment of tumours related to HER2 proteins.
Raymond John calculated that ZW25 contributed US$8.48 per share to its concentrate on price. ZW49, meanwhile, contributed US$1.Teen.
Other significant factors in the company’s valuation include its a marriage with six other is recommened companies including Celgene and Williams & Johnson Innovations. Raymond James stated these partnerships have the potential to provide a staggering US$5.5 billion in non-dilutive, milestone payments for Zymeworks eventually, and that it expects new licensing deals to be made in the near future.
In the past few years, the utilization of anti-body based therapeutics has dominated modern medicine. According to Raymond James, insix of the top 10 innovative drugs around the world were antibody related molecules.
“In our view, antibody-based therapeutics will continue to dominate slimming pills, with bispecific antibody development holding considerable promise,” the report proclaimed.
Before advancements in biotherapeutics, small atom therapy was the dominant method in modern medicine. Novak said using antibiotics to treat health conditions is the most natural method of treatment. A number of small molecule therapies may come with toxic effects for several patients. He compared them to using treatment at the it is partially level as opposed to other cancer treatments such as chemotherapy.
According to be able to Raymond James, more than 75 antibody-based substances have been approved into the prescription drug market since 1986.