A strong and diversified pipeline has led Pitt Street Research to value Prescient Therapeutics Ltd (ASX:PTX, OTC:PSTTF) at up to 16.4 cents per share, using a Sum of the Parts/DCF valuation.
With the company currently trading at around $0.042, this valuation represents considerable upside.
Advanced flagship asset
The research report positions PTX as one of the more advanced oncology biotechs on the ASX, standing out against many of its competitors who are still in pre-clinical or Phase 1 stages.
Prescient’s lead drug PTX-100 is targeting T-Cell Lymphomas and the company is set to start a Phase 2 trial by the end of 2024.
The initiation of the Phase 2 trial and an expected recovery in the life sciences sector looks set to boost the company’s valuation.
What’s more, PTX-100, which blocks the GGTase I enzyme, could potentially receive FDA approval after this trial, skipping the need for a Phase 3 due to the lack of treatment options for this cancer.
“In our view, shareholders can be very confident in the drug’s success given its Phase 1 results, as well as for potential interest from commercial partners, if market precedent is anything to go by,” the report said.
The analysts estimate the US market opportunity for PTX-100 at around US$2.5 billion, based on a potential penetration rate of 50% and pricing guidance from similar drugs.
“Not a one-trick pony”
And Prescient is not solely reliant on PTX-100. The company is also advancing its CellPryme and OmniCAR platforms, which aim to improve CAR-T therapies by enhancing their efficacy and control.
“PTX is nearing completion of pre-clinical development of CellPryme and is preparing regulatory packages for both CellPryme-M and CellPryme-A so that these may enter the clinic in due course,” the report noted.
“The advantage of these platforms is that they can integrate easily into partner programs without highly disruptive changes to manufacturing processes or protocols mid-stream.
“PTX is progressing platform optimisation of OmniCAR to investigate unarmed T-cell activity and improving control features. As a unique and multi-modal platform, this program is involving domain experts across protein and cell engineering and other areas.”
These platforms could significantly augment the company’s long-term potential.
All these factors position PTX as a promising biotech company with multiple avenues for growth, both through its leading PTX-100 drug and its broader portfolio.