Over the last two months, there have been some strong price movements in several major and minor biotech stocks. Following a downturn that has lasted almost two years, has the Australian sector finally bottomed?
We reviewed Clinuvel Pharmaceuticals, Dimerix, Imugene, and Neuren.
Dimerix (DMX) – Up 130% (up 34 million)
One of the standout performers across the smaller market cap biotech companies has been Dimerix. The company's share price is up 146% equating to a $38 million increase in market value following the announcement of a licensing deal for its lead drug candidate, DMX-200.
DMX-200 is currently being assessed in a global phase III study for the treatment of the kidney disease FSGS (Focal Segmental Glomerulosclerosis) with Part 1 assessment expected in mid-March. The company licensed rights to this drug candidate to Advanz Pharma for Europe, the UK, Canada, Australia and New Zealand. Dimerix received an upfront payment of $10.8 million with up to $219 million in future milestone payments as well as 15% - 20% royalties from net product sales.
The initial data assessment will be a major event for the company. Dimerix recently received approval to expand its study in China, which will occur pending the release of data in March. Depending on the quality of results, the company may be able to file DMX-200 for accelerated market approval based on changes in proteinurea levels at the completion of Part 2 of the study. In both Part 1 and Part 2, 72 patients are expected to be recruited (total 144) and treated for just 35 weeks. The full study is expecting to recruit 286 patients to be treated for two years.
Dimerix recently appointed Dr David Fuller as its Chief Medical Officer. Mark Diamond, the former CEO of Antisense Therapeutics, has been installed as a non-executive chairman.
Bioshares recommendation: Speculative Buy Class B
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