HCW starts Biophytis at buy; PT $15


H.C. Wainwright initiated coverage of Biophytis SA of France (NASDAQ:BPTS) with a “buy” rating and $15 price target. The stock closed at $6.09 on Oct. 22.

As a spin-off from Sorbonne University in 2006, Biophytis has built out a portfolio of therapeutics based on phytochemicals, or compounds derived from plants. 

Using a proprietary platform, the company focuses on targeting pathways that slow the degenerative processes associated with aging and improving functional outcomes in patients, writes analyst Joseph Pantginis, Ph.D. 

The company’s lead asset, Sarconeos is purified from the plant Stemmacantha carthamoides, cultivated in China and used for medicinal purposes in traditional Chinese medicine. Sarconeos targets the MAS receptor of the renin angiotensin system, a complex hormonal signaling pathway implicated in several physiological processes, including blood pressure, inflammation and fibrosis. 

“This mechanism of action allows it to be leveraged across a growing range of indications,” Dr Pantginis said, adding that the furthest along in clinical development is the company’s COVID-19 program, COVA, aimed at treating severe respiratory failure in COVID-19 patients. 

He said Sarconeos also is being developed for sarcopenia, a disorder involving skeletal muscle degeneration, and Duchenne muscular dystrophy (DMD), a rare genetic neuromuscular disease in male children. 

“We believe the shares should be attractive to investors based on the potential commercialization of Sarconeos for COVID-19 on the horizon; upcoming clinical milestones across multiple programs; and an expanding portfolio in several indications, which could further value of the shares over the long term,” Dr. Pantginis said.