Maxim starts ABVC BioPharma at buy; PT $3

Maxim Group initiated coverage of ABVC BioPharma (NASDAQ:ABVC) with a “buy” rating and price target of $3. The stock closed at 96 cents on June 16.

ABVC is developing assets in ophthalmology, mental health, and oncology.

The company has three unique platforms that continue to evolve and should provide near-, mid-, and long-term value drivers for the company, writes analyst Jason McCarthy, Ph.D. At an approximate $30-million market cap, “we see ABVC shares as undervalued,” he added.

Dr. McCarthy said the company’s Vitargus aims to improve ocular outcomes during, and after, vitrectomy surgery, compared with standard of care. The program is on a PMA device pathway, and a Phase 2 registration trial, comparing the efficacy of Vitargus vs. standard of care is expected in the third quarter of 2022.

The company’s PDC-1421 is an oral botanical drug from the dry root of Polygala tenuifolia being developed for major depressive disorder (MDD) and adult attention deficit hyperactivity disorder (ADHD).

For MDD, with positive Phase 2 data in hand, ABVC is seeking a partner to move the program into Phase 3. In adult ADHD, a Phase 2 trial is ongoing and expected to finish by the end of 2022, Dr. McCarthy added.

He said BLEX404 is an oral liquid botanical drug derived from the maitake mushroom being developed for an oncology pipeline in myelodysplastic syndrome (MDS), pancreatic cancer, and triple-negative breast cancer (TNBC).

Phase 2 clinical trials in MDS, pancreatic and TNBC are all planned to initiate in the fourth quarter of 2022, he added.