Morgans initiates coverage of commercial stage drug development company Pharmaxis with a Speculative Buy rating and $0.58 target price. Cancers and inflammatory conditions are the target of its clinical pipeline, while a respiratory franchise generates income.
There are two approved respiratory products, Bronchitol and Aridol, with sales forecast of over $10m in FY22 and there’s upside from US$15m in milestone payments (linked to sales), explains the analyst.
The lead drug candidate PXS-5505 is targeting the rare cancer Myelofibrosis, which has a market opportunity exceeding $US1bn.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $0.58.Current Price is $0.09. Difference: $0.49 – (brackets indicate current price is over target). If PXS meets the Morgans target it will return approximately 84% (excluding dividends, fees and charges – negative figures indicate an expected loss).
