William Blair initiated research coverage of Bionomics Limited (BNOX $11.52), a clinical-stage biopharma company based in Australia with U.S. operations developing small-molecule ion channel modulators to treat central nervous system disorders.
Analyst Myles Minter estimated the company’s lead asset BNC210, which is in trials for the treatment of post-traumatic stress disorder (PTSD) and social anxiety disorder (SAD), could achieve more than $1.5 billion in sales by 2035, given the lack of effective treatments and prevalence of PTSD and SAD.
“BNC210 targets a well-validated pathway in anxiety and emotional learning and has been tested in over 400 patients across 12 clinical trials to date,” Minter said. “The totality of the data demonstrates sound safety relative to current standard of care and signals of anxiolytic activity including in a small placebo-controlled generalized anxiety disorder trial. After the outpatient Phase II RESTORE PTSD study did not meet its primary endpoint, NC210 was reformulated into a tablet with improved pharmacokinetics. A healthy volunteer study confirmed tablet dosing with or without food achieved drug exposure levels in the predicted therapeutic range, based on exposure/efficacy analysis from the initial studies. Ultimately, we believe the improved drug PK profile and trial designs bode well for the ATTUNE and PREVAIL readouts and could position BNC210 as a single pill for both acute and chronic treatment scenarios.”
Minter continued, “In addition, Bionomics has partnered with Merck to develop BNC375 to treat Alzheimer’s disease. BNC375 has completed Phase I safety studies, and a second-generation molecule with improved potency is also being explored. The deal provides validation for Bionomics’ chemistry and is valued at up to $506 million in milestones.”
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Current Ratings Distribution (as of 1/9/21)
Outperform (Buy): 77%
Market Perform (Hold): 23%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 34%
Market Perform (Hold): 12%
Underperform (Sell): 0%
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