In an April 9 research note, analyst Rahul Sarugaser reported that Paradigm Capital raised its target price on Tetra Bio-Pharma Inc. (TBP:TSX.V; TBPMF:OTCQB) to CA$1.75 per share from CA$1.50 after "the excellent news" it was restarting its Phase 3 clinical trial of PPP-001. The company's current share price is around CA$0.66 per share.
"The resumption of this Phase 3 trial, particularly now that it is registered with the U.S. Food and Drug Administration as well as Health Canada—increasing its market by 10 times—when it begins would likely be significantly accretive to our valuation," Sarugaser commented.
He explained that Tetra's study was put on hold in January because two microbial contaminants were discovered in batches of its PPP-001 cannabis pellet drug, which the company had sourced from Aphria. At the time, it was estimated the issue would delay the trial by six months, until July. However, Tetra is back on track, three months earlier than expected, and is ready to relaunch the study.
Now called SERENITY, the clinical trial will test PPP-001, now called CAUMZ, in 300 patients with advanced cancer pain, enrolled at 20 sites across the U.S. and Canada, Sarugaser explained. CAUMZ will be administered via a Health Canada-approved vaporizer.
If patient registration starts in June, the trial could be completed by year-end 2019. Accordingly, Tetra could then apply to both regulatory agencies for approval of CAUMZ by early 2020.
Paradigm has a Buy rating on Tetra.[NLINSERT]
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Disclosures from Paradigm Capital, Revival Gold Inc., Research Note, April 9, 2019
The analyst (and associate) certify that the views expressed in this report accurately reflect their personal views about the subject securities or issuers. No part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations expressed in this research report.
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