Frost & Sullivan Publishes Initial Coverage Report on Kadimastem Ltd.: Kadimastem offers treatment of diabetes and neurological diseases such as ALS by cellular therapy; Company is pursuing clinical trial (ALS), and pre-clinical processes (diabetes); target price set at NIS 0.85.
Equity Research is published in the framework of the Tel Aviv Stock Exchange (TASE) Analysis Program
TEL AVIV, Israel, July 5, 2018 /CNW/ -- The TASE analysis project was launched in 2016 in order to raise investors' awareness to TASE listed technology and life-science companies and the markets in which these companies operate, thus creating appropriate pricing and increasing the exposure of investors from Israel and abroad. Its goal is to encourage investments in these companies by improving understanding of these industries and companies in the market.
In order to maintain professional, independent and unbiased analysis, the companies signed an agreement with the TASE to receive the analysis services for an obligatory period of two years. The companies cannot withdraw from the project during this period. The analysis is funded by the companies surveyed with funding from the Chief Scientist and the TASE.
Summary of Highlights
- Kadimastem addresses the global ALS therapy market, which stood at $53M in 2016 and is expected to grow to between $468M and $840M million by 2021, as new therapies enter the market.
- According to the company, ALS also has a heavy economic burden with estimated healthcare expenditure at $6B p.a. in the US alone.
- The company expects to complete phase I/IIa clinical trials by August 2020. If it is able to demonstrate the efficacy and safety of AstroRx in treating ALS patients, it can further evaluate its AstroRx therapy for treating other neurological disorders.
- Research suggests that astrocytes can play a positive role in Alzheimer's disease, Parkinson's disease, multiple sclerosis and epilepsy – diseases with no cure and pressing unmet needs.
- The market for insulin is expected to grow at a CAGR of 8.3% and reach $43.6 billion by 2021. Although the market is highly competitive, we assume there is room for innovative companies, to enter and grow.
- The company is developing its diabetes program in collaboration with French based medical device manufacturer Defymed.
- The companies' plan to conduct a joint proof of concept pre-clinical test to combine the former's stem cell derived - islet-of-Langerhans-like cell clusters (insulin secreting beta cells) with the latter's medical device (MailPan) and evaluate the efficacy of the combination in treating diabetes.
- We estimate the company's equity value at NIS 52.11M ($14.64M) corresponding to a target price ranging between NIS 0.77 and NIS 0.93; a mean of NIS 0.85
- 2019 will be a crucial year for Kadimastem with the forecasted release of one early-stage clinical trial results and a POC trial, both which have the potential to impact the company's strategic position within the stem cells domain.
- We see both short and long term investment potential in Kadimastem stock
About the company - Kadimastem Ltd. (hereinafter "Kadimastem" or "the company") is a clinical stage biopharmaceutical company that specializes in developing different types of human body cells (known as differentiated cells) – such as neural cells (e.g. oligodendrocytes and astrocytes) and insulin secreting beta cells, derived from human embryonic stem cells. The company has its technological platform and two current stem cell based therapies in research phase – AstroRx (consists of astrocytes, a type of brain cell) and Encapsulin (insulin secreting beta cells) for treating amyotrophic lateral sclerosis (ALS) and diabetes respectively.
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Corporate Communications - Frost & Sullivan, Europe
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SOURCE Frost & Sullivan
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