NEW YORK - PaxMedica (NASDAQ: PXMD), a biopharmaceutical company specializing in the development of treatments for neurological disorders, was the subject of a research report by H.C. Wainwright & Co. The report shines a light on the company's innovative suramin-based therapy, particularly its potential to treat Autism Spectrum Disorder (ASD) and Human African Trypanosomiasis (HAT).
H.C. Wainwright & Co.'s analysis used an 11% discount rate and projected a 2% terminal rate of decline to reflect the risks associated with the development of PAX-101, including expected competition from generic drugs post-patent expiration. The financial assessment also considered a 30% probability of approval, based on suramin's extensive historical usage and early-stage study data. This led to a risk-adjusted valuation of $60 million for PAX-101 and set a price target of $3 per share by end-2024, assuming nearly 19.2 million fully-diluted shares.
The report comes on the heels of PaxMedica's announcement today that it plans to file a New Drug Application (NDA) next year for PAX-101, its intravenous suramin treatment. This follows the controlled clinical study results from November 2023, which showed that PAX-101 could have a clinically meaningful impact on ASD symptoms.
The successful filing of the NDA could lead to PaxMedica obtaining a Priority Review Voucher (PRV), which is valued at potentially over $100 million upon approval.
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