Newly-floated Motif Bio (LON:MFTB) has ‘considerable potential upside’, according to the number crunchers Shard Capital.
The company is developing a best-in-class antibiotic called iclaprim that it is hoped will be able to target resistant strains of bacteria.
Not just that, in iclaprim it has a drug candidate that is ready to go into the final phase of clinical trials and could be out in the market in 18 months.
Shard estimates Motif will probably need to spend around £20mln to carry out these studies, which might mean tapping investors. But more likely it will find an industry partner to foot the bill.
Motif’s current market capitalisation is just £21.2mln, which Shard points out points values the business at a fraction of its closest benchmark company, the US firm Paratek, which is worth £310mln.
“This strongly suggests that there is considerable upside potential in Motif,” said analyst Mark Brewer.
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