Brookline Capital Markets launched coverage of Edesa Biotech (NASDAQ:EDSA) with a “buy” rating and $10 price target. The stock closed at $2.16 on March 27.
Edesa is developing EB01, a topical sPLA2 inhibitor that targets the anti-inflammatory pathway upstream of currently approved nonsteroidal anti-inflammatory drugs for treatment of allergic contact dermatitis.
“In our view, EB01 is expected to have a differentiated product profile, compared with corticosteroids and immunomodulators, with high efficacy and comparatively better side effect profile,” writes analyst Kumaraguru Raja. EB01 is in a Phase 2b trial with interim data expected in the fourth quarter of 2020.
The second product candidate in Edesa’s pipeline is EB02, a topical sPLA2 Inhibitor being developed for treatment of hemorrhoids. EB02 is expected to enter a proof-of- concept Phase 2a study in patients with internal hemorrhoids in Canada near term, with data expected by end of the year, Mr. Raja said.
“We foresee a favorable risk reward as EB01 and EB02 advance through the clinic as there is significant unmet need for non-steroid-based therapeutics for dermatological and gastrointestinal diseases,” he added.
