ProMIS Neurosciences Inc (PMN)

[noretreat]

ProMIS Neurosciences Is ProMIS’ Alzheimer’s Antibody Better Than Biogen’s?

ProMIS advances ALS Program.  ProMIS Neurosciences yesterday announced it has generated antibody candidates for the treatment of neurodegenerative diseases known as amyotrophic lateral sclerosis and frontotemporal dementia. We believe this is a positive development as the company nears completion of preclinical development and prepares to start human clinical trials.

ProMIS' differentiation. ProMIS is developing a novel therapeutic approach targeting a distinctive molecular entity, known as toxic oligomers, which the scientific literature recognizes as the true culprits of neurodegenerative diseases such as ALS, FTD, Alzheimer’s and Parkinson’s diseases. In contrast, competitor Biogen’s aducanumab is targeting amyloid-beta plaques for the treatment of Alzheimer’s. ProMIS’ lead drug PMN310 does not bind amyloid-beta plaques.

Impact of Biogen’s news. In a reversal of fortunes, Biogen’s stock gained 25% over the last two trading sessions after the company announced that it plans to file for FDA approval of aducanumab for the treatment of Alzheimer’s. On March 21, 2019, Biogen’s stock lost 29% after the company discontinued two Phase III clinical trials on the use of aducanumab. In our view, the news is positive for the sector. However, we still believe that ProMIS’ PMN310 is a superior drug.

Reiterating Outperform Rating.  We believe ProMIS’s currently deflated share price does not reflect the potential of its lead drug PMN310 and versatility of its antibody platform technology. In our opinion, PMN310 has a unique mechanism of action targeting the true culprit of Alzheimer's disease, which makes it potentially superior to aducanumab. We are reiterating our Outperform rating and $1.00 target price on the stock.

Equity Research Cosme Ordonez, MD, Ph.D., Senior Life Sciences Analyst [phone] [e-mail]
Noble Capital Markets, Inc. Trading: [phone] Sales: [phone] www.noblecapitalmarkets.com