Tiziana Life Science PLC (LON:TILS; NASDAQ:TLSA) is worth around 300% more than the current share price based on just two of its potential pipeline developments, according to HC Wainwright.
The broker reiterated its US$25 price target and 'buy' rating for the Nasdaq-listed ADS following the biotech's recent updates on two projects: foralumab and StemPrintER.
This target, though excludes any contribution in future from foralumab beyond Crohn's disease or milciclib in cancers beyond HCC (liver); or indeed anything from StemPrintER or TZLS-501 (coronavirus), said the broker.
“Positive clinical data with foralumab for indications representing massive markets like AD (Alzheimer’s) and MS (multiple sclerosis) could thus constitute a considerable upside to our assumptions,” added analyst Raghuram Selvaraju.
Earlier this week, Tiziana reported that Howard Weiner, the chairman of its scientific advisory board, had received a grant from the NIH to investigate foralumab, its nasally delivered anti-CD3 monoclonal antibody (mAb), as a possible Alzheimer's treatment.
The grant followed a demonstration by Weiner that unexpectedly found that the nasally delivered anti-CD3 modulated brain microglia in animal models.
Activated microglia have been shown in studies to essentially 'erase' memories in mice, said Selvaraju.
Tiziana has a worldwide exclusive licence for nasal administration of anti-CD3 mAbs for the treatment of neurodegenerative diseases including Alzheimer’s, noted the analyst, from Brigham and Women’s Hospital, Harvard Medical School, Boston.
A breakthrough in Alzheimer’s is being urgently sought.
The developments at Tiziana come as Biogen Inc (NASDAQ:BIIB) is readying to launch aducanumab, which, when it goes live will be the only commercially available product developed specifically to treat the disease.
Peak sales are tipped to hit US$10bn, and, with pent up demand worldwide, revenues from the Biogen breakthrough are expected to rise rapidly, analysts said.
Phase I trials of foralumab have focused on its use as a treatment for multiple sclerosis and Crohn’s disease, respectively, said Selvaraju but plans are in train for phase II studies in both conditions for nasally and orally administered formulations.
Selvaraju expects a proof-of-concept study might start for oral foralumab as a treatment for Crohn’s and intra-nasal foralumab for multiple sclerosis within six to 12 months.
Tiziana is also working on an inhaled form to address lung inflammation and dysfunction in patients infected with the SARS-CoV-2 coronavirus, which is responsible for the COVID-19 pandemic.
On StemPrintER, Selvaraju added that validation data presented at ASCO in posters provided compelling evidence of its predictive power for breast cancer and its superiority over the current standard Oncotype DX.
The shares are trading at 96p in London and US$6.50 in ADS form on Nasdaq.