Circadian Technologies (ASX: CIR) is an Australian biotechnology company developing innovative, biologics-based therapies for the treatment of cancer and other serious human illnesses.
Circadian owns an extensive portfolio of products and intellectual property related to Vascular Endothelial Growth Factors (VEGFs), a class of proteins that play a critical role in regulating tumour blood supply.
US Broker: "Circadian Technologies The Cheapest Little Antibody Company on the Planet"
US-based investment bank Merriman Curhan Ford has issued a research report on local biotechnology company Circadian Technologies (ASX: CIR) with a BUY rating and a A$2.20-2.88 price per share target range.
The Circadian share price currently sits at A$0.63.
52-Week Range: $0.56-0.88
Cash (M): $34.8
Book Value/Share: $0.86
Market Cap (M): $29
Merriman Curhan Ford Investment Conclusion
Circadian Technologies is a developmental stage biotech company mainly focuses on the development of antibodies for the treatment of cancer. The company possesses a basket of validated preclinical assets and a strong patent estate. Current valuation provides an attractive entry point for investors interested in an inexpensive antibody company.
The shares are trading well below cash (AUD 0.75/share) and are poised to see near term potential upside on the basis of the company’s minority stake in Antisense Therapeutics, which is on the cusp of a milestone.
We are therefore transferring coverage with a Buy rating and a AUD 2.20-2.88 price target range.
Summary
Circadian Technologies: the cheapest antibody play on the planet?
Circadian Technologies Ltd. is an Australia-based antibody development company that might represent the least expensive way for investors to access an investment in the antibody space. Over the past decade, sales of antibody based products have grown exponentially, and a number of antibody technology and therapeutic companies have been acquired.
Circadian represents the rare opportunity to invest in a company that trades at a negative enterprise value and is in an area of great interest to the biotech and pharmaceutical industries.
Covering the VEGF landscape-easy as 1, 2, 3. The VEGF signaling pathway is represented by a family of three receptors and the proteins that bind them (ligands).
Most investors and physicians know about VEGF based on the success of the success Genentech/Roche’s (ROG.VX CHF 179.40; Not Rated) antibody, Avastin. Avastin is directed at the VEGF-A ligand, which binds the VEGF-1 and 2 receptors. In contrast, Circadian is developing antibodies to the ligands VEGF-C and D, which bind the VEGF-2 and 3 receptors.
This mechanism may offer additional efficacy and/or a reduction in resistance compared to traditional anti-angiogenic approaches.
Circadian’s approach is unique, IP position is strong. Circadian has three internal and one out-licensed development candidates targeting VEGF-C and D providing multiple opportunities for success.
The company’s IP position extends out at least to 2025, providing investors with assurance of sustained revenues for the foreseeable future.
Merriman Curhan Ford concluded:
Transferring coverage with a Buy rating. Circadian may be the least expensive publically-traded antibody we can find. At a valuation of AUD 26M, we see significant upside in the shares.
Circadian Technologies Limited, a biotechnology company, engages in the development and commercialization of angiogenesis-based therapies for the treatment of cancer and other human illnesses. It owns intellectual properties related to vascular endothelial growth factors (VEGFs), a class of proteins that regulate tumor blood supply.
