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Friday, February 25, 2022 12:36:25 PM
by Can-Fite BioPharma, Contributor
February 24, 2022 1:09 PM | 3 min read
https://www.benzinga.com/amp/content/25808959
Summary
We are CORRECTING our initiating coverage of Can-Fite BioPharma Ltd. (“Can Fite” or the “company”), a clinical-stage pharmaceutical company, with an OUTPERFORM rating and $6.00 price target (CORRECTION from the previous, initiated $2 price target). With a pipeline of proprietary small molecule drugs treating inflammation, cancer and liver diseases, we believe Can-Fite is poised to register material progress in commercializing its compounds in 2022, including the imminent release of Phase III trial data for the treatment of psoriasis. Further, with a business model predicated on licensing compounds to leading international pharmaceutical players, we believe new contracts and territory expansion will refocus investors on Can-Fite’s myriad positives. As such, we view the risk/reward in CANF as impressive and are initiating coverage with an OUTPERFORM rating and a $6.00 price target.
Key Points
Focused on A3 adenosine receptor (“A3AR”). A3AR has a high incidence in cancer and inflammatory cells, which allows the company’s compounds to target A3AR and destroy the corresponding cells. Given the low expression of A3AR in normal cells, Can-Fite’s proprietary products have demonstrated high levels of safety.
Demonstrating efficacy: First up, psoriasis. The Phase III COMFORT study, which is designed to test Can-Fite’s Piclidenoson compound superiority in treating moderate to severe plaque psoriasis (versus the placebo) and non-inferiority compared to Amgen’s Otezla®®, was completed in January 2022. We expect 120M release of the data, which is set for 1Q22, to be a material catalyst. Psoriasis is a projected $40 billion + market.
Next in cue: Compounds to combat Hepatocellular Carcinoma (“HCC”) and Nonalcoholic steatohepatitis (“NASH”), a type of non-alcoholic fatty liver disease (“NAFLD”). Can-Fite’s second key compound, Namodenoson, is focused on treating HCC (liver cancer) and NASH. After a successful Phase II trial for HCC, Can-Fite is preparing to launch a Phase III Liver cancer study in 1Q22; the liver cancer market is estimated at approximately $3.8 billion.
In January 2022, Can-Fite enrolled their first patient for a Phase IIb trial to test the efficacy and safety of Namodenoson in treating NASH, a growing disease for which there is currently no FDA approved treatment, The market size is projected to be approximately $35 billion by 2025.
Erectile disfunction, cannabis and animal osteoporosis treatments are all in preclinical development.
Can-Fite business models sharesrisks,still offers impressive rewards. Can-Fite is entirely focused on achieving approval for its compounds. The company licenses the commercialization of its compounds for specific territories and ailments, which includes up front and milestone payments and a double-digit royalty rate. Given that there are still crucial territories unpartnered (United States, Western Europe, United Kingdom, Ireland, Japan among others) we see the signing of future licensing deals as key catalysts.
Strong, effective management team.
We project the company will need approximately $10 million in incremental financing in 2023, via either equity offerings or milestone/new territory licensing expansion.
Our Discounted Cash Flow model registers a CANF value of $7.09. We have conservatively projected only Piclidenoson for psoriasis receives regulatory approval in the projected time period and have assumed further dilutive equity raises.
Recent CANF News
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/16/2024 11:07:52 AM
- Can-Fite: Pancreatic Carcinoma Phase IIa Clinical Study with Namodenoson Received Regulatory Authorization from the Israeli Ministry of Health • GlobeNewswire Inc. • 09/16/2024 11:00:00 AM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 09/09/2024 04:15:08 AM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 09/06/2024 08:30:17 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/30/2024 08:18:30 PM
- Form F-3 - Registration statement by foreign private issuers • Edgar (US Regulatory) • 08/30/2024 08:18:01 PM
- Form POS AM - Post-Effective amendments for registration statement • Edgar (US Regulatory) • 08/30/2024 08:16:15 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 08/30/2024 08:15:30 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/29/2024 12:46:20 PM
- Can-Fite Reports First Half 2024 Financial Results & Progress in Two Pivotal Phase III Clinical Studies • GlobeNewswire Inc. • 08/29/2024 12:15:57 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/12/2024 10:45:11 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/09/2024 10:07:53 AM
- Can-Fite Announces Exercise of Warrants for Approximately $5.0 Million in Gross Proceeds • GlobeNewswire Inc. • 08/08/2024 11:01:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/29/2024 11:03:27 AM
- Can-Fite Provides Namodenoson Patent Update • GlobeNewswire Inc. • 07/29/2024 11:00:00 AM
- Join Can-Fite’s Exclusive Live Investor Webinar and Q&A Session on August 8 • GlobeNewswire Inc. • 07/17/2024 11:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/11/2024 11:05:26 AM
- Can-Fite Applies for FDA Orphan Drug Designation for Namodenoson in the Treatment of Pancreatic Cancer • GlobeNewswire Inc. • 07/11/2024 11:00:00 AM
- Improvement in Patient with Decompensated Liver Cirrhosis Upon Treatment with Namodenoson • GlobeNewswire Inc. • 07/01/2024 11:00:00 AM
- Positive Results from Osteoarthritis Clinical Study in Dogs Reported by Can-Fite’s Partner Vetbiolix • Business Wire • 06/28/2024 11:00:00 AM
- Can-Fite: Breakthrough Findings Demonstrate Namodenoson Anti-cancer and Protective Effect Mechanism in the Liver • Business Wire • 06/24/2024 11:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/10/2024 11:05:22 AM
- Can-Fite Received IRB Approval for the Treatment of Pancreatic Cancer with Namodenoson in a Phase IIa Study • Business Wire • 06/10/2024 11:00:00 AM
- Form 6-K/A - Report of foreign issuer [Rules 13a-16 and 15d-16]: [Amend] • Edgar (US Regulatory) • 06/07/2024 08:15:12 PM
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