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Bioasis Technologies gets US$0.60 price target in initiation from Zacks Small-Cap Research

Published: 15:01 21 Oct 2020 EDT

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The company has preclinical programs underway targeting breast cancer metastases and treatment of Gaucher disease, both of which Zacks expects to reach clinical trials in 2021

Bioasis Technologies Inc (CVE:BTI) (OTC:BIOAF) could ultimately be worth double its current share price if analysts at Zacks Small-Cap Research are correct in the recent coverage initiation report. 

The firm gave Bioasis a US$0.60 price target in a note published Monday, suggesting more than 100% upside on its Wednesday afternoon price of $US0.26. 

Bioasis is developing a program called xB3 that enables drugs to cross the blood-brain barrier (BBB). The company has preclinical programs underway targeting breast cancer metastases and treatment of Gaucher disease, both of which Zacks expects to reach clinical trials in 2021.

READ: Bioasis Technologies secures US patent for its xB3 blood-brain barrier drug delivery platform

In the long term, Zacks estimates a 2030 approval and launch of the two candidates, known as xB3-001 and xB3-007, respectively.

“Our model forecasts an eight-year clinical development and regulatory approval timeline followed by commercialization using estimates based on average drug revenues,” Zacks wrote. “As we do not expect Bioasis to commercialize approved candidates itself, we assume a royalty payment from partners of 33% for internally developed assets and a 10% royalty for partner-developed candidates. 

“Revenue forecasts assume average global drug revenues are achieved after a two-year ramp. Our price target forecasts revenue contribution from six in-development candidates and applies a weighted average 8% probability of ultimate commercialization.”

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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