Roth MKM analyst Dr. Jonathan Aschoff, in a research report published on July 8, 2024, provided an update on Bio-Path Holdings Inc. (BPTH:NASDAQ) following the company's announcement of progress in its cancer clinical trials and plans to begin preclinical obesity studies. The analyst maintained a Buy rating and a 12-month price target of US$20.00 on the stock.
Bio-Path reported the development of a molecular biomarker package for prexigebersen to select patients with genetic profiles most likely to respond better to the drug in oncology trials.
"Upon implementing the new biomarker screen, we expect BPTH to then require about 18 months to complete Phase 2 enrollment for cohorts 1 and 2 of AML patients," Aschoff noted.
The analyst highlighted progress in the BP1002 trial, stating, "The progress with BP1002 is that cohort 2 enrollment has started, which should complete and allow for data review by YE24."
Regarding the company's prexigebersen-A trial in solid tumors, Aschoff commented, "The Phase 1/1b prexigebersen-A monotherapy trial in advanced or recurrent solid tumors, which includes ovarian, uterine, pancreatic, and breast cancer, safely completed dose cohort 1 (60mg/m2) and is currently treating patients in dose cohort 2 (90mg/m2)."
Bio-Path is also preparing for preclinical studies to develop prexigebersen for obesity and obesity-related cancers.
"The drug targets the mRNA of Grb2, which is involved in activating the RAS/ERK pathway that promotes cell growth. Given that two such pathways are related to leptin and insulin in obesity, activation of leptin or insulin receptors can stimulate the RAS/ERK pathway via Grb2i," Aschoff explained.
The company's strategic plans include advancing its oncology pipeline, with a focus on prexigebersen in AML and BP1002 in relapsed/refractory lymphoma and CLL. Bio-Path is also expanding its research into obesity and obesity-related cancers.
Roth MKM's valuation methodology for Bio-Path Holdings is based on a discounted cash flow (DCF) analysis. "Our Buy rating and 12-month price target of US$20 is based on a DCF analysis using a 25% discount rate that is applied to all cash flows and the terminal value, which is based on a 5x multiple of our projected 2031 operating income of US$121 million," Aschoff stated. "We arrive at this valuation by projecting future royalty revenue from prexigebersen in AML and from BP1002 in relapsed/refractory CLL."
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Disclosures for Roth MKM, Bio-Path Holdings Inc., July 8, 2024
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Disclosures: Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Bio-Path Holdings, Inc.. Shares of Bio-Path Holdings, Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
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