Waiting on Protox Phase 2b clinical results

Dundee Capital Markets says upcoming Phase 2b clinical results from Protox Therapeutics (TSX:PRX) may validate its prostate-targeted bacterial toxin PRX302 in men with benign prostate hyperplasia (BPH).

In a New Idea of Interest, analyst David Martin writes that prior Phase 2a data supports the drug’s positive profile compared with leading minimally invasive therapies and BPH drugs.  He points out that the safety and tolerability of PRX302 are emerging as superior and other advantages including, cost effectiveness.

Mr. Martin doesn’t rate the stock, which finished trading at 65 cents on Tuesday, or have a price target.  But he says that clearly positive Phase 2b results, expected by January, “would support PRX stock value in the $1.30-to-$1.80 range,” citing competitor Nymox (NASDAQ:NYMX), which started Phase 3 testing of its drug NX-1207 in the summer.

He pegs Protox’s North American market opportunity at $200-million (U.S.) a year based on the number of procedures annually in the U.S. and the potential to expand into the much larger population of drug-treated BPH patients.