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Paradigm Biopharmaceuticals shines under broker spotlight

Paradigm has been attracting the attention of brokers.

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Baker Young has a Buy Recommendation on the stock

Paradigm Biopharmaceuticals (ASX:PAR) is focused on repurposing the historic drug PPS (Pentosan Polysulfate Sodium) as a potential new treatment for Bone Marrow Edema (BME) lesions following traumatic injury.

The company has recently come under the spotlight of brokers.

Baker Young has a Buy Recommendation on the stock with a $1.16 per share price target, while DJ Carmichael applying a Speculative Buy and a risked valuation of $1.32 per share.

Paradigm last traded at a significant discount to these prices, at $0.40 per share.

Following are some key finding from the broker reports.


Baker Young

Hay fever Phase II Trial Nears Completion – Results Readout Q2/Q3 CY2017

We maintain coverage of Paradigm with a BUY recommendation and have increased our valuation to $1.16 per share due to Phase II hay fever trial nearing completion.

Our valuation is derived from using a combination of probability weighted DCF methodology ($1.18) and peer group valuation ($1.14 implied PAR share price).

Our target price of $1.16 per share sits in the midpoint of our valuation range.


DJ Carmichael

Phase 2 hay fever clinical trial on schedule and budget

We maintain our Speculative Buy recommendation. We stress that PAR is significantly under-valued compared to peers who have compounds undergoing Phase II trials.

We believe a successful outcome will be a major catalytic event for PAR and is likely to initiate interest from big pharma who are looking to replace revenues from drugs going off-patent.

Our valuation remains between A$120M and A$152M which corresponds to share price of A$1.18 and A$1.50 respectively, or a mid-point of $1.34 per share.

Quick facts: Paradigm Biopharmaceuticals Ltd

Price: 1.69 AUD

ASX:PAR
Market: ASX
Market Cap: $334.31 m
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