Entera Bio Ltd. (ENTX:NASDAQ) garnered additional analyst coverage; H.C. Wainwright & Co. initiated it with a Buy rating and a $10 per share price target, reported analyst Dr. Ram Selvaraju in a September 6, 2022 research note. In comparison, Entera Bio's current share price is much lower, at about $1.34, implying a significant potential investment return.
This company converts the existing active pharmaceutical ingredients of well-known injectable drugs into pill form and is currently working toward that aim with two biologics, one for osteoporosis (EB613) and the other for hypoparathyroidism (EB612), explained Selvaraju. Both candidates are based on the natural human parathyroid hormone.
"Entera Bio is well-positioned with its focus on these areas since both represent lucrative target markets that are poorly served by existing treatment options," Selvaraju commented. "Clinical data for both lead candidates appear promising and indicative of commercially impactful potential."
Eventually, for the two lead candidates, both of which could be commercialized within a 12-month period, the analyst sees "EB613-generated revenues providing a cushion and EB612-related revenues largely falling to the bottom line," he wrote. Beyond that, with both drugs approved in the U.S., Entera Bio would be an attractive takeout target to potential acquirers.
Selvaraju reviewed both markets and the potential for EB613 and EB612 in them.
As for osteoporosis, tens of millions of people in the U.S. alone suffer from it, he relayed. Several treatments available for the indication are not ideal. The oral drugs on the market do not rebuild bone, just inhibit its breakdown. The available agents that can induce new bone formation, including teriparatide, romosozumab, and abaloparatide, must be injected. Thus, few osteoporosis patients who could benefit from such a drug, less than 10%, actually use one.
Therefore, Entera Bio's candidate EB613, teriparatide in pill form, has great potential, Selvaraju wrote.
It "could be positioned as the sole anabolic pill for the treatment of osteoporosis," he added. "We think this agent could reach peak sales of over $2 billion in the U.S. alone by 2035."
Selvaraju purported that Entera Bio would likely need a well-established biopharma partner to fully penetrate the commercial market with EB613.
The biopharma completed a dose-ranging Phase 2 study of EB613, which met primary and secondary endpoints, and the company has designed a Phase 3.
Regarding hypoparathyroidism, it affects more than 100,000 individuals in just the States, and the only available treatment for it is calcium and vitamin D supplementation, Selvaraju relayed. An injectable drug, Natpara, once on the market, is no longer available because of potential contamination issues.
Entera Bio's EB612 is an orally administered treatment containing the same active pharmaceutical ingredient as Natpara, noted Selvaraju. Because hypoparathyroidism constitutes a niche market, the biopharma could likely commercialize this drug itself, using a specialty sales force targeting endocrinologists. The company could be ready to advance EB612 into Phase 3 next year.
"We think EB612 could achieve peak U.S. sales of nearly $350 million by 2033," Selvaraju wrote.
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Disclosures For H.C.Wainwright & Co., Entera Bio Ltd., September 6, 2022
H.C. WAINWRIGHT & CO, LLC RATING SYSTEM: H.C. Wainwright employs a three tier rating system for evaluating both the potential return and risk associated with owning common equity shares of rated firms. The expected return of any given equity is measured on a RELATIVE basis of other companies in the same sector. The price objective is calculated to estimate the potential movements in price that a given equity could reach provided certain targets are met over a defined time horizon. Price objectives are subject to external factors including industry events and market volatility.
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