Entera Bio Ltd. (a subsidiary of DNA) has announced a research and development agreement with pharmaceutical giant Amgen for pre-clinical drug candidates, attesting to the economic and clinical potential of Entera already included in our valuation model and therefore the target price remains unchanged.
TEL AVIV, Israel, Dec. 12, 2018 /PRNewswire/ -- 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
Entera, a subsidiary of DNA, announced a research collaboration regarding inflammatory disease and other serious illnesses on December 11th, 2018. As part of the agreement, Entera will use its proprietary drug delivery platform to develop oral versions of one preclinical large molecule program selected by Amgen. Amgen has the option of selecting two other programs to add to the collaboration. Entera will be eligible to receive up to $270 million in aggregate payments, along with tiered royalties up to mid-single digits upon reaching various milestones. It will retain IP rights to its technology.
Amgen is a 'big pharma' company, traded at a value of $125 billion at the time of our analysis report. These kind of companies are constantly exploring in search of acquisitions of companies at very early stages all around the world and choose to diversify risks through various investments in technologies that offer both scientific and economic potential. Therefore, this agreement bears witness to the clinical potential of Entera.
On the economic side, this is an insignificant investment at this preliminary stage, as reported by Entera, which we have already taken into consideration in our economic models under the technological platform considerations.
Thus, we maintain DNA's value at $48.5 million (NIS 175M) corresponding to a target price of $0.33 (NIS 1.19) per share.
About the company - Israeli holdings firm DNA Biomedical Solutions Ltd. was founded in 2004 and went public on the Tel Aviv Stock Exchange in 2007. DNA has two key holdings, respective 35% and 40% stakes (both fully diluted) in biomedical companies - Entera Bio and BeamMed.
Entera Bio Ltd. is a drug development company, founded in 2009 by DNA and Oramed, the latter from whom it has licensed a unique drug delivery platform for oral administration of pharmaceutically active large molecule proteins that are nowadays injected. Entera is conducting clinical trials for two candidate drugs treating three indications: hypoparathyroidism, osteoporosis, and non-union fractures.
BeamMed Ltd. and its global subsidiaries, are medical device companies that deliver an ultrasound based screening solution for determining a patient's risk of developing osteoporosis, with unique additional product features. Please click here (https://ww2.frost.com/research/equity-research/)
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion
SOURCE Frost & Sullivan