MACKIE RESEARCH REPORT SUMMARY
ALGERNON PHARMACEUTICALS INC. – SPECULATIVE BUY
- We are initiating coverage of Algernon Pharmaceuticals (AGN-CSE) with a SPECULATIVE BUY recommendation and a target price of $0.80/share.
- Banking on a Unique Drug Repurposing Strategy: Algernon is focused on developing repurposed small molecules for new disease indications – these drug candidates have been already approved in ROW markets (but not approved in the U.S. or Europe).
- Near-term Catalysts: Algernon’s lead product, ifenprodil (a marketed drug in Japan for circulatory disorders) is being repurposed for COVID-19, idiopathic pulmonary fibrosis (IPF) and chronic cough. A Phase 2b/3 COVID-19 trial is underway – Phase 2b data is expected in Q4 2020.
- A Phase 2 trial in IPF patients with chronic cough has also been initiated – results are expected in Q1 2021 for early chronic cough data and Q2 2021 for full study data. Besides ifenprodil, Algernon has positive animal data on three additional repurposed drug candidates for NASH, chronic kidney disease and inflammatory bowel disease – the three candidates could directly enter into Phase 2 trials in the future.
- We believe Algernon’s unique drug repurposing strategy can generate decent shareholder value going forward. Our $0.80/share valuation is based on a probability-adjusted NPV analysis of ifenprodil.
By Andre Uddin & Yue Ma – 2020/08/19
FOR MORE INFORMATION CONTACT:
ANDRÉ UDDIN, Ph.D.
Managing Director Healthcare