SeeThruEquity Initiates Coverage on Sernova Corp. (TSX: SVA, OTCQB: SEOVF) with a Price Target of CAD $0.76
October 5, 2015 9:00 AM
NEW YORK, NY / ACCESSWIRE / October 5, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it recently initiated coverage of Sernova Corp. (TSX: SVA, OTCQB: SEOVF) with a Price Target of CAD $0.76.
The report is available here: SVA Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
With headquarters in London, Ontario, Sernova is a clinical stage medical company focused on developing disruptive platform technologies that use regenerative medicine to treat chronic diseases. Initially Sernova is developing medical technologies aimed at treating chronic metabolic diseases including Type 1 and Type 2 diabetes, blood disorders such as hemophilia, thyroid disease, and other diseases. We see several potential catalysts ahead for the company as it pursues a partner-based strategy for advancing its clinical development program - and ultimately commercialization – for the treatment of the approximately 30mn people worldwide who suffer from insulin-dependent diabetes.
"The company's patented Cell Pouch System(TM) is a novel, implantable medical device technology for delivering therapeutic cells in a safe and biologically appropriate environment," stated Ajay Tandon, CEO of SeeThruEquity. "We find the technology to be compelling, especially in light of the large market opportunity as 30 million people worldwide suffer from insulin-dependent diabetes. We are initiating coverage with a 12-month price target of CAD$0.76 per share."
Additional highlights from the report are as follows:
Cell Pouch System(TM) offers a novel approach to diabetes treatment
Sernova's Cell Pouch System(TM) is a subcutaneous implantable medical device technology that is designed for the transplantation of therapeutic cells, including donor, xenogeneic, or stem cell derived therapeutic cells to treat chronic diseases. The Cell Pouch System(TM) was custom designed to provide a natural environment for therapeutic cells, which then can produce missing proteins or hormones and release these therapeutics into the bloodstream. The Cell Pouch System™ can also provide local immune protection for the therapeutic cells and includes the full complement of technologies required to develop advanced cell-based treatments with applications in a number of chronic diseases involving the need for a missing protein, hormone or factor – suggesting that the technology has the potential for numerous indications beyond those enumerated by the company. Over the last six years Sernova has made considerable progress on its Cell Pouch System(TM) development program for insulin-dependent diabetes patients, with strong preclinical confirmation of safety and efficacy - as well as clinical success with human islets in brittle diabetics. Sernova recently secured access to a near-infinite supply of cells sourced from its licensed technology with University Health Network (UHN) of Toronto. We next expect the company to move forward to initiate a Phase 2 human trial using the Cell Pouch System(TM) to transplant therapeutic cells to insulin dependent diabetes patients.
Large market for diabetes therapeutics
Initially Sernova is targeting diabetes - a chronic disease that occurs when the pancreas does not produce enough insulin. Diabetes is a widespread and growing disease that affects approximately 387mn across the globe, a figure that is expected to rise to 592mn by 2035, according to the International Diabetes Federation (IDF). The cost of treating diabetes and its side effects represents a massive economic burden on healthcare, having been estimated at over $245Bn in North America alone. The initial target market for Sernova's Cell Pouch System(TM) is the 30mn insulin-dependent Type 1 and Type 2 diabetics worldwide. Although smaller in number, insulin dependent diabetics represent approximately 50% of the multi-billion dollar global market for diabetes. Following diabetes, Sernova's second clinical program for the Cell Pouch System(TM) is hemophilia, and the company also sees potential for the Cell Pouch System(TM) for treatment of thyroid disease, and other chronic diseases.
Initiate coverage with a price target of CAD $0.76
Our analysis indicates a fair value estimate of CAD $0.76 per share for Sernova. If achieved, the target represents potential upside of 145.2% from the recent price of CAD $0.31. We see Sernova as an intriguing speculative story in the healthcare sector with a potentially disruptive platform technology that is initially addressing the $420Bn+ global market for diabetes treatment, with several additional indications planned for the future.
Please review important disclosures on our website at www.seethruequity.com.
About Sernova Corp.
Sernova Corp. is a clinical stage regenerative medicine company developing medical technologies for the treatment of chronic debilitating metabolic diseases such as diabetes, blood disorders including hemophilia and other diseases treated through replacement of proteins or hormones missing or in short supply within the body. Sernova is developing the Cell Pouch(TM), an implantable medical device for therapeutic cells (donor, xenogeneic or stem cell derived therapeutic cells) which then release proteins and/or hormones as required.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.