September 8, 2022 (Investorideas.com Newswire) This Israeli firm recently attracted the attention of the US-based financial institution, H.C. Wainwright & Co., which launched analyst coverage of it.
Entera Bio Ltd. (ENTX:NASDAQ) garnered additional analyst coverage; H.C. Wainwright & Co. initiated it with a Buy rating and a $10 per share price target, reported analyst Dr. Ram Selvaraju in a September 6, 2022 research note. In comparison, Entera Bio’s current share price is much lower, at about $1.34, implying a significant potential investment return.
This company converts the existing active pharmaceutical ingredients of well-known injectable drugs into pill form and is currently working toward that aim with two biologics, one for osteoporosis (EB613) and the other for hypoparathyroidism (EB612), explained Selvaraju. Both candidates are based on the natural human parathyroid hormone.
“Entera Bio is well-positioned with its focus on these areas since both represent lucrative target markets that are poorly served by existing treatment options,” Selvaraju commented. “Clinical data for both lead candidates appear promising and indicative of commercially impactful potential.”
Eventually, for the two lead candidates, both of which could be commercialized within a 12-month period, the analyst sees “EB613-generated revenues providing a cushion and EB612-related revenues largely falling to the bottom line,” he wrote. Beyond that, with both drugs approved in the U.S., Entera Bio would be an attractive takeout target to potential acquirers.
Selvaraju reviewed both markets and the potential for EB613 and EB612 in them.
As for osteoporosis, tens of millions of people in the U.S. alone suffer from it, he relayed. Several treatments available for the indication are not ideal. The oral drugs on the market do not rebuild bone, just inhibit its breakdown. The available agents that can induce new bone formation, including teriparatide, romosozumab, and abaloparatide, must be injected. Thus, few osteoporosis patients who could benefit from such a drug, less than 10%, actually use one.
Therefore, Entera Bio’s candidate EB613, teriparatide in pill form, has great potential, Selvaraju wrote.
It “could be positioned as the sole anabolic pill for the treatment of osteoporosis,” he added. “We think this agent could reach peak sales of over $2 billion in the U.S. alone by 2035.”
Selvaraju purported that Entera Bio would likely need a well-established biopharma partner to fully penetrate the commercial market with EB613.
The biopharma completed a dose-ranging Phase 2 study of EB613, which met primary and secondary endpoints, and the company has designed a Phase 3.
Regarding hypoparathyroidism, it affects more than 100,000 individuals in just the States, and the only available treatment for it is calcium and vitamin D supplementation, Selvaraju relayed. An injectable drug, Natpara, once on the market, is no longer available because of potential contamination issues.
Entera Bio’s EB612 is an orally administered treatment containing the same active pharmaceutical ingredient as Natpara, noted Selvaraju. Because hypoparathyroidism constitutes a niche market, the biopharma could likely commercialize this drug itself, using a specialty sales force targeting endocrinologists. The company could be ready to advance EB612 into Phase 3 next year.
“We think EB612 could achieve peak U.S. sales of nearly $350 million by 2033,” Selvaraju wrote.
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Disclosures For H.C.Wainwright & Co., Entera Bio Ltd., September 6, 2022
H.C. WAINWRIGHT & CO, LLC RATING SYSTEM: H.C. Wainwright employs a three tier rating system for evaluating both the potential return and risk associated with owning common equity shares of rated firms. The expected return of any given equity is measured on a RELATIVE basis of other companies in the same sector. The price objective is calculated to estimate the potential movements in price that a given equity could reach provided certain targets are met over a defined time horizon. Price objectives are subject to external factors including industry events and market volatility.
H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.
I, Raghuram Selvaraju, Ph.D. and Boobalan Pachaiyappan, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of Aeterna Zentaris Inc. and Radius Health, Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of August 31, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Aeterna Zentaris Inc. and Radius Health, Inc.. Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.
A research analyst of the firm and/or the research analyst’s household has a financial interest in and own the securities of BridgeBio Pharma, Inc. (including, without limitation, any option, right, warrant, future, long or short position). As of August 31, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of BridgeBio Pharma, Inc..
Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report. None of the research analysts or the research analyst’s household has a financial interest in the securities of Oramed Pharmaceuticals, Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of August 31, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Oramed Pharmaceuticals, Inc.. Affiliates of H.C. Wainwright beneficially own 1% or more of the common equity securities of Oravax Medical Inc., a joint-venture that is majority-owned by Oramed Pharmaceuticals Inc. Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The firm or its affiliates received compensation from Aeterna Zentaris Inc., BridgeBio Pharma, Inc. and Oramed Pharmaceuticals, Inc. for non-investment banking services in the previous 12 months. The Firm or its affiliates did not receive compensation from Aeterna Zentaris Inc., BridgeBio Pharma, Inc. and Radius Health, Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm or its affiliates did receive compensation from Oramed Pharmaceuticals, Inc. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report. H.C. Wainwright & Co., LLC managed or co-managed a public offering of securities for Oramed Pharmaceuticals, Inc. during the past 12 months.
The Firm does not make a market in Aeterna Zentaris Inc., BridgeBio Pharma, Inc., Oramed Pharmaceuticals, Inc. and Radius Health, Inc. as of the date of this research report. The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person. Electronic versions of H.C. Wainwright & Co., LLC research reports are made available to all clients simultaneously.
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