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BioSig Tech. (BSGM) & Electrophysiology Sector (related stock BSGM)
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New Laidlaw report, after ViralClear presentation - $13 price target New Laidlaw report with ViralClear information. Highlights: Details. Management indicated during the call that IND filing of Vicromax is scheduled to take place in a few weeks and potentially commence a Phase I/II study this May. The company plans to raise capital for ViralClear Pharmaceuticals to fund the operation. In addition, the Mayo Clinic also showed interest in investing in this endeavor. Andrew D. Badley, M.D., professor of medicine from the Mayo Clinic at Rochester, will be the lead investigator of the study. The company plans to publish more details about Vicromax in the next few days at an on-line publication called bioRxiv.org. We also anticipate more details regarding trial design later this quarter. Management indicated that Vicromax is an oral IMP dehydrogenase (IMPDH) inhibitor that has exhibited antiviral activities. Vicromax also has shown anti-COVID-19 activities against the strains isolated from the first batch of COVID-19 infected patients in the U.S. IMPDH is a critical enzyme used in the de novo biosynthesis of guanine nucleotides, which are needed for the rapidly proliferating cells. Several proposed antiviral mechanisms include inhibition of viral RNA transcription/elongation, inhibition of the formation of a guanine pyrophosphate “cap” on the 5prime end of viral mRNA; and the depletion of intracellular GTP and dGTP pools since the de novo GTP synthesis is critical in supplying precursors for viral RNA synthesis. BSGM also reported that some of PURE EP system clinical study is halted due to the COVID-19 pandemics but the publication (results from the first 34 patients) will take place shortly.
• Implications. We are encouraged by the rapid progression of Vicromax advancement given that multiple competing programs are in the landscape. Given Vicromax targets a human molecule (IMPDH) instead of a specific viral molecule, it potentially has a different drug resistant profile vs. drugs that target directly against viral molecules. Rapid and frequent mutations of the RNA viruses might render these drugs less effective over time. In addition, there is precedent for an IMPDH inhibitor, Ribavirin, as an approved broad-spectrum antiviral agent for RSV and HCV(in combination with IFN-).
• Action. With the PURE EP system at initial stage of commercialization and a positive outlook for its revenue stream, we believe BSGM shares remain undervalued. We reiterate our Buy rating and 12-month target price of $13 based on our forward P/E and EP space M&A comparable analyses. |
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