Market's view on Bivictrix Thera
Published on April 2024
- 2024 is anticipated to be a pivotal year for the company, especially if BVX001 enters clinical trials, potentially causing significant share price movements due to current interest in the ADC sector.
- There have been criticisms regarding a recent fundraising approach where directors and large shareholders were allowed to participate in a placement at 13p, which was below the market price, without an option for smaller shareholders.
- The company has reported that BVX001 induced a 97% tumour regression after all scheduled doses in a recent study, highlighting strong preclinical efficacy.
- Earlier results had shown that BVX001 achieved up to 93% tumour regressions in an Acute Myeloid Leukemia model, further substantiating the data package supporting clinical progression.
- The company expressed confidence in securing a partnership rather than seeking additional market funding due to the robust demand in the ADC market.
- A financial analysis by Panmure Gordon initiated coverage of the company with a ‘buy’ rating, setting a price target that suggests a substantial increase from the previous close.
- The Chairman’s statement emphasized the potential of short-term data to attract significant commercial partnerships and licensing opportunities, aiming to position the company attractively within the sector.
- A significant trade at 31.5p led to a quick price rise to 35p, with expectations that positive clinical updates could substantially increase the share value.
- Comparisons were drawn with US-listed companies in similar sectors, suggesting a significant undervaluation of the company’s market cap compared to its peers.