Echelon Wealth Partners initiated coverage of Kalytera Therapeutics (TSXV:KALY) with a “speculative buy” rating and price target of 30 cents. The stock closed at 8.5 cents on Jan. 14.
Kalytera is developing the naturally occurring cannabinoid, cannabidiol (CBD), to both prevent and treat an immunological condition called graft-versus-host disease (GvHD.
“Our investment thesis for Kalytera rests squarely on the firm’s existing IP, specifically protecting GvHD as a CBD medical market exclusive to Kalytera and on … published Phase 2 data generated by clinical collaborators at Tel Aviv University/Rabin Medical Center,” writes analyst Doug Loe.
Kalytera is conducting a confirmatory 36-patient, three-arm, dose-ranging Phase 2 GvHD trial, with final efficacy data expected in the second quarter of 2019. Positive data could justify advancing CBD into more comprehensive Phase 2/3 GvHD testing as early as second half, he added.
“We believe that interim data from an [initial] 12-patient cohort reported late in the fourth quarter of 2018 were highly positive … providing supporting evidence for our optimism that final analysis could be similarly positive,” Mr. Loe said.
