Zacks SCR reiterates 400% upside call on Nurexone Biologic for risk-tolerant investors
In a recent note, Zacks Small-Cap Research (Zacks SCR) has valued Canadian drug developer Nurexone Biologic, which trades in the U.S., at $2.55 per share, more than five times the current share price. In the over-the-counter market on Tuesday, December 3, the stock was quoted at $0.50 per share.
Details
Zacks SCR believes Nurexone Biologic stock should be $2.55 per share, 410% higher than the current share price. In over-the-counter trading on Tuesday, the stock was changing hands at $0.50 per share, having advanced more than 131% since the beginning of the year.
The company is developing a drug, known as ExoPTEN, to treat patients with acute spinal cord injuries. Zacks SCR points out that this is an enormous market, with about 50,000 new cases globally per year, while Nurexone itself estimates the market’s size at $2.9 billion.
ExoPTEN has recently received orphan drug designation in the EU, according to Zacks SCR. This provides 10 years of market exclusivity after regulatory approval, meaning no other company can sell a similar drug in the region during that period. Developers of orphan drugs may qualify for grants and, in some EU countries, tax incentives, Zacks SCR adds, noting that ExoPTEN has also received orphan drug designation in the U.S., where the exclusivity period is limited to seven years.
According to MarketWatch, apart from Zacks SCR, there is one more analyst covering the company, who has a “buy” recommendation with a target price of $1.80 per share.
About Nurexone Biologic and ExoPTEN
Nurexone, with a market capitalization of $26.4 million, is working on ExoPTEN, a drug, in the words of the company, “born in the labs of Israel’s Technion” and later licensed by Nurexone. ExoPTEN uses exosomes — microscopic vesicles that play a pivotal role in cell-to-cell communication. Exosomes act as vehicles for the patented sequence of siRNA (small interfering RNA), which produces the therapeutic effect. ExoPTEN has been tested on animals, showing significant nerve regeneration and functional recovery.
“It was the test results from the use of ExoPTEN that sparked our enthusiasm for the company, because the initial test results are, in our view, truly remarkable,” notes Zacks SCR.
During the trials, the spinal cords of rats were completely severed, and the drug was administered nasally. The testing showed significant motor improvement, sensory recovery, and faster urinary reflex restoration, reports Zacks SCR.
“We continue to be enthusiastic about the prospect for Nurexone… We urge investors with a higher risk tolerance to take a look at NRXBF and consider whether this compelling story may be of interest,” Zacks SCR concludes.
