In valuing Prescient Therapeutics Ltd (ASX:PTX, OTC:PSTTF) at A11.6 cents per share in its base case and A16.3 cents in its bull case, Pitt Street Research said the ASX-listed oncology drug developer was set for major milestones in the coming months and was, therefore, on the cusp of value creation.
In a research report, Pitt Street said the company had several platforms and products in its portfolio, led by PTX-100, which was targeting T-Cell lymphoma.
Prescient also had two cell therapy platform technologies, it said - CellPryme, which enhanced adoptive cell therapy performance; and OmniCAR, which allowed next-generation cell therapy products to be developed.
PTX-100 most advanced
Pitt Street said that PTX-100 was closer to creating value for the company after noting in its initiation report last November that this was the most advanced asset the company had.
Since then, it said preliminary Phase 1 data had been encouraging and was presented at the prestigious American Society of Hematology meeting held in the US in December.
READ: Prescient Therapeutics’ PTX-100 Phase 1b study shows excellent safety and promising efficacy in T-cell lymphoma patients
At the time, Prescient said that Phase 1 demonstrated an “excellent safety profile, with no drug-related SAEs”.
Prospects “bright”
The research report stated that as well as the efficacy results and PTX-100’s safety profile, the current lack of treatment options for T-Cell Lymphomas, the dire outlook for those diagnosed with it and clinical data to date, made Prescient’s prospects bright, if and when it could take the product to market.
It said that although it had only completed Phase 1, there was potential for PTX-100 to be granted FDA approval after Phase 2, which the company planned to initiate before the end of 2024.
CellPryme and OmniCAR
While CellPryme and OmniCAR were not as developed, Pitt Street said they also represented improvements on existing CAR-T technologies.
In this way, they presented “appetising commercial opportunities if and when the company can commercialise them”.
They were not CAR-T therapies in their own right, but Pitt Street said they had potential to improve CAR-T efficacy when used in combination with them.
Valuation reiterated
For these reasons, Pitt Street has reiterated its valuation of Prescient contained in the initiation report.
Using a ‘Sum of the Parts’ rationale with 2 risk-adjusted DCFs for PTX-100 and CellPryme, Pitt Street has valued Prescient at A11.6 cents per share in its base case and A16.3 cents per share in its bull case.
It said the total valuation was the sum of the NPV if PTX-100 and CellPryme as well as the company’s net cash position (worth A0.7 cents per share).
Prescient ended the December quarter with cash reserves of A$18.4 million of which A$12 million was held in term deposits with maturities of between six and 12 months.
The company has today traded up to A$0.053 and the market cap is approximately A$37.69 million.