H.C. Wainwright initiated coverage of Medivir (NASDAQ, Stockholm:MVIR) with a “buy” rating and price target of SEK 54. The stock closed at SEK 22.55 on June 24.
“With a past centered around antiviral therapies, which included the successful development and commercialization of two products, Xerclear and Olysio, for the past few years, Medivir has suffered from what we believe was the lack of a clear focus in both business and development strategy, which culminated in a major restructuring started in 2015,” writes analyst Joseph Pantginis.
As a result, he said Medivir is now well positioned on a new defined oncology path and based exclusively on the clinical development of four promising assets.
They include remetinostat, which is pivotal ready with FDA guidance in hand for the treatment of the mycosis fungoides form of cutaneous T-cell lymphoma and potential expansion into basal cell carcinoma; birinapant, currently in a Phase 2 trial with Keytruda for microsatellite-stable colorectal cancer; MIV-818, in Phase 1b for the treatment of hepatocellular carcinoma; and MIV-828, which is about to begin IND-enabling studies for AML.
Mr. Pantginis said Medivir is pursuing a partnership in order to begin pivotal studies with remetinostat, and though timing is uncertain, “we believe that the company should sign a partner this year, representing potential upside for the shares.”
As of now, he said the next key catalyst, expected in the fourth quarter of 2019, is the futility analysis of the birinapant-Keytruda combination, which “we believe represents a critical show-me event.”
