Roth Capital Partners launched coverage of AIT Therapeutics (OTC:AITB) with a “buy” rating and $14 price target. The stock closed at $5.75 on Sept. 25.
AIT is utilizing nitric oxide-based inhalation technology to treat infectious diseases, including bronchiolitis and nontuberculous mycobacterium abscessus (M. abscessus).
Analyst Scott Henry writes that AIT is addressing large markets with unmet needs. “We estimate the target markets for bronchiolitis and M. abscessus at $750-million and $900-million, respectively, and neither appears to have satisfactory current treatments.”
He said a Phase 3 data read-out for the lead bronchiolitis program (AIT-RSV) is expected in the first half of 2018. “Based on prior Phase 2 data and a similar design, we expect that the Phase 3 trial will be positive,” he added. “The company can likely file an NDA post a confirmatory Phase 3 U.S. trial.”
Mr. Henry said the company’s M. abscessus program (AIT-NTM) is earlier in development with less clinical visibility. “That said, we are optimistic, given results in two cystic fibrosis patients of reducing sputum load,” he added.
