Thursday, June 29, 2017 8:48:08 AM
SeekingAlpha.com
Feb 14, 2017
Summary
- On Thursday, February 16, Abeona will present initial data from its clinical trial investigating ABO-102 in Sanfilippo Type A at the WORLDSymposium.
- Clinical validation of a biotechnology company's technology is usually a defining moment in the company's evolution and a highly value-enhancing event for shareholders.
- Clinically validated gene therapy companies trade at around 7-11x the valuation of companies with technologies yet to be validated with human data.
- If successful, I don't see why Abeona won't trade at similar market caps to companies like AVXS and ONCE. Near-term price target is $30/share.
- Sophisticated biotech hedge funds have recently appeared on the shareholder register, insiders have been buying the stock, and a considerable number of call options traded last week.
Executive Summary and Investment Thesis
Abeona Therapeutics (NASDAQ:ABEO) is a biotechnology company with a number of early- and late-stage assets. This week the company will present initial data on its lead compound, ABO-102 for Sanfilippo syndrome at the WORLDSymposium (We're Organizing Research on Lysosomal Diseases) in San Diego (Feb. 13-17).
The validation of a biotechnology company's key technology is usually a defining moment in the evolution of that company and usually creates significant value for the company's shareholders. Like other gene therapy companies with unproven technology, Abeona trades at a substantial discount to those companies with validated technology, and I believe that validation of Abeona's lead technology could drive the company's share price toward $30/share, which would put its valuation in line with those companies that have validated technology - e.g., AveXis (NASDAQ:AVXS), Spark Therapeutics (NASDAQ:ONCE), and Ultragenyx Pharmaceutical (NASDAQ:RARE).
Longer term, I believe ABEO has the technologies that could be worth more than $100 per share, but the purpose of this report is to preview the imminent clinical catalyst, and readers should refer to previous work for the full company background and the longer-term investment thesis.
I note that a number of highly sophisticated biotech hedge funds have recently appeared on the shareholder register, there has been considerable insider buying over the past 18 months, and in recent weeks, a substantial number of March call options have traded.
As with all biotech investments, the outcome of an investment is very dependent on clinical trial outcomes, which is speculative, and the key company specific risk in Abeona is the failure to commercialize any of its clinical programs. Cash on balance sheet of $72m will provide support for the shares at $1.75 if clinical trials fail. That said, this company is investigating drugs for ultra-rare terminal diseases where there is currently no approved agent, and this means the hurdle for approval at the FDA is very low, and the clinical trial data to date is highly encouraging. With cash burn of about $1m per month, the company has over three years of cash burn on balance sheet, so there is no need for near-term funding.
extensive article continues;
https://seekingalpha.com/article/4045696-abeona-preparing-liftoff-next-avexis
Recent ABEO News
- Abeona Therapeutics® Announces Participation in Upcoming Investor Conferences • GlobeNewswire Inc. • 09/03/2024 11:30:00 AM
- Abeona Therapeutics® Announces New Employee Inducement Grants Under Nasdaq Listing Rule 5635(c)(4) • GlobeNewswire Inc. • 09/02/2024 11:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/27/2024 11:10:59 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/27/2024 11:09:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/27/2024 11:08:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/27/2024 11:07:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/27/2024 11:06:06 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/27/2024 11:05:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/14/2024 09:10:27 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/14/2024 09:10:11 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 08/14/2024 09:08:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/14/2024 11:30:37 AM
- Abeona Therapeutics® Announces Appointment of Bernhardt Zeiher, MD, FCCP, FACP, and Eric Crombez, MD to its Board of Directors • GlobeNewswire Inc. • 08/14/2024 11:30:00 AM
- Abeona Therapeutics® Announces Favorable Medicare Reimbursement Decisions for Pz-cel • GlobeNewswire Inc. • 08/13/2024 11:30:00 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/12/2024 11:35:32 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/12/2024 11:30:12 AM
- Abeona Therapeutics® Reports Second Quarter 2024 Financial Results and Concludes Type A Meeting with FDA to Align on Upcoming Pz-cel BLA Resubmission • GlobeNewswire Inc. • 08/12/2024 11:30:00 AM
- Abeona Therapeutics® Announces New Employee Inducement Grants Under Nasdaq Listing Rule 5635(c)(4) • GlobeNewswire Inc. • 08/01/2024 11:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/22/2024 08:30:32 PM
- Abeona Therapeutics and Beacon Therapeutics Announce Non-Exclusive Agreement for Beacon to Evaluate Therapeutic Potential of Abeona's Patented AAV204 Capsid for Select Ophthalmology Indications • GlobeNewswire Inc. • 07/11/2024 11:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/09/2024 08:35:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/09/2024 08:35:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/09/2024 08:35:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/09/2024 08:35:38 PM
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