PAION AG Aachen (PAIOF)

[rk091161]

First Berlin Equity Research has published a research update on PAION AG (ISIN: DE000A0B65S3).

Analyst Simon Scholes reiterated his BUY rating and maintained his EUR 4.60 price target.

Abstract: Paion has published comprehensive peer-reviewed results of its phase III trial of remimazolam in procedural sedation of colonoscopy patients in the USA. The results spectacularly confirm the conclusion we drew in June following the headline results - that remimazolam will produce substantial time savings for physicians in comparison with its prospective main competing product, midazolam. While the headline phase III results in combination with the phase IIb results published in 2010 suggested a time saving on a typical 30-60 minute colonoscopy procedure of over six minutes, the comprehensive phase III results show a total combined onset/offset time saving versus midazolam of over 23 minutes! The US colonoscopy market is currently seeing trends towards lower reimbursement per procedure. In this environment, physicians are looking for ways to maintain their income. Remimazolam, which has the advantage over midazolam of shorter onset/offset times and over its other main prospective rival product, propofol, of not requiring an anaesthetist, is a clear potential answer to this problem. In June Paion signed a U.S. licensing deal with Cosmo Pharmaceuticals on the strength of the headline phase III data. We continue to expect late 2017 for filing and late 2018 for approval of remimazolam in the U.S. We maintain our Buy recommendation and price target of EUR4.60.