Echelon Capital Markets initiated coverage of Antibe Therapeutics (TSX:ATE) with a “speculative buy” rating and price target of $15 (Canadian). The stock was quoted at $3.70 in afternoon trading on Jan. 29.
Antibe is developing drugs for pain and inflammation that have improved side-effect profiles based on the company’s platform of hydrogen sulfide-releasing (H2S) analogs. Its lead drug, otenaproxesul, is an H2S-releasing analog of naproxen, a widely used non-steroidal anti-inflammatory drug that causes significant gastrointestinal side effects.
“Otenaproxesul has demonstrated strong efficacy and limited GI side effects in Phase 2b trials with osteoarthritis patients, which position it as a potential blockbuster treatment,” writes analyst Stefan Quenneville.
Mr. Quenneville said Antibe is currently engaged in partnership discussions for the commercialization rights to otenaproxesul for major markets, including the U.S., Europe and Japan. “We anticipate a deal with a Big Pharma partner in the next year, which should be a meaningful catalyst for the stock,” he added.
“While we are bullish on otenaproxesul’s clinical success, the key risks center on Phase 3 results that will only read out in 2023, proving an attractive entry point for investors in the interim,” Mr. Quenneville said.
