William Blair initiated coverage of Brickell Biotech (NASDAQ:BBI) with an “outperform” rating and fair value estimate of $2. The stock closed at 21 cents on March 7.
Brickell is a biopharmaceutical company focused on developing novel therapies for inflammatory and immune disorders.
Beyond NDA-ready sofpironium bromide for primary axillary hyperhidrosis, which the company plans to out-license for commercialization, Brickell’s lead asset is BBI-02, which is expected to enter the clinic in the first half 2022 with Phase 1 single ascending dose/multiple ascending dose data by yearend in atopic dermatitis.
“Pending positive data, we believe BBI-02 has development potential in a range of blockbuster autoimmune and inflammatory diseases, where its differentiated mechanism of action could confer significant value,” writes analyst Tim Lugo.
“With what we view as a differentiated NDA-ready asset for hyperhidrosis and an early-stage pipeline targeting novel mechanisms in autoimmune and inflammatory conditions, we believe Brickell is executing on its pivot from dermatology drugs to early-stage autoimmune and inflammatory development,” he added.
And while the early stage of the pipeline carries risk, “we believe the current valuation holds a strong risk/reward profile with comparable companies trading at a lower bound of valuations, representing a 10-fold increase from Brickell’s current levels,” Mr. Lugo said.
