Is This California Biopharma Co. In the Right Place at the Right Time?
Research Report

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Disclosures for Roth MKM, GT Bipharma Inc., December 2, 2024

Disclosures: Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from GT Biopharma, Inc.. ROTH makes a market in shares of GT Biopharma, Inc. and as such, buys and sells from customers on a principal basis. ROTH and/or its employees, officers, directors and owners own options, rights or warrants to purchase shares of GT Biopharma, Inc. stock.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may

Roth MKM analyst Dr. Jonathan Aschoff, in a research report published on December 2, 2024, initiated coverage on GT Biopharma Inc. (GTBP:NASDAQ) with a Buy rating and a price target of US$11.00. The report was titled "GTBP: Initiate at Buy - Activating NK Cells In
The Right Place At The Right Time." The report highlights the company's development of unique precision therapeutic agents using camelid-derived nanobodies.

Aschoff emphasized the company's technology platform, stating, "Clinical-stage GT Biopharma is developing unique precision therapeutic agents using camelid-derived nanobodies. These drugs, called second-generation TriKEs (Tri-specific Killer Engagers), leverage the distinct properties of camelid antibodies, which are smaller and more stable when stored than traditional human monoclonal antibodies."

The analyst highlighted recent progress, noting that "The IND for GTB-3650 (targets CD33 to treat AML & high-risk MDS) was cleared by the FDA in late 2Q24 with Phase 1 initiation expected by YE24." He added that "the IND submission for GTB-5550 (targets B7-H3 to treat solid tumors) is expected in 1H25."

Regarding market potential, Aschoff referenced peer transactions, stating, "GTBP's closest peers with early-stage NK cell activating technology have already garnered substantial interest from larger players such as Sanofi Pharmaceuticals and Roivant Sciences licensing drugs from Affimed N.V. for US$96M upfront (2018; multiple drugs) and US$60M upfront (2020; single drug), respectively."

Roth MKM's valuation methodology is based on a DCF analysis. Aschoff explained, "Our valuation 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 2033 operating income of US$113 million."

The company currently has US$6.5M in cash, which funds operations into 2Q25, and no debt. The share price at the time of the report of US$2.80 represents a potential return of approximately 293% to the analyst's US$11.00 target price.