Replies to post #90372 on Savvy Trades and Investments

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Jones Trading
Equity Research: Healthcare

COMPANY NEWS

August 16, 2021

Inhibikase Therapeutics, Inc.

NASDAQ: IKT Rating: BUY Price Target: $12.00

Last Price (August 13, 2021): $1.91

NDR—Reiterating BUY/$12 PT. Initial Data in
YE21/1Q22; Efficacy Data in Parkinson’s in Mid-2022

Summary:

Following Inhibikase’s non-deal roadshow we are seeing gaining confidence
and measured optimism among the investors. There are several unknowns at this point and we expect to get clarity in the coming weeks. Inhibikase is a clinical stage company developing a brain penetrant c-Abl kinase inhibitor for the treatment of Parkinson’s disease.

Below are our key takes –

1) Parkinson’s disease patients will start getting dosed for 7 days, followed by 2-3 months of safety observation. There will be three dose cohorts and 8 patients/cohort. We expect to get initial safety data set by YE21/1Q22. 7-day dosing is not likely to show disease modifying effects.

2) Management mentioned the Phase 1b to be placebo controlled – i.e. three IkT-148009 dose cohorts (30 patients/cohort) + placebo arm. We expect to get further details in the coming weeks.

3) The patients on the Phase 1b portion, with a target enrollment of 120 patients, will be on drug for 3 months. We expect Phase 1b portion to start enrolling in 4Q21.

4) The Phase 1b portion (3-month dosing) will be looking into GI effects and cognitive effects in Parkinson disease patients. We believe meaningful GI data to be available in 1H/mid-2022 and meaningful cognition data (UPDRS) to be in 2H/YE22.

5) Additionally, we expect to see a peer reviewed publication in 2H21/1H22 detailing preclinical and healthy volunteer PK/PD data, and possibly chemical structure and kinome tree chart of IkT-148009 – describing the structural differences versus backbone imatinib, and specificity towards Abl kinase versus other non/poorly brain penetrating c-Abl kinase inhibitors.

Previous attempts with partially brain penetrant c-Abl kinase inhibitors have shown encouraging signs of disease modifying effects and we believe Inhibikase’s third generation c-Abl inhibitor will be able to translate preclinical efficacy into clinical benefits. Given the current low implied valuation of IKT and a potential 4X M&A multiple on adjusted peak sales of approx. $1.8BN, we view IKT well undervalued.

Reiterating BUY and $12 Price Target.

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reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Please see the Important
Disclosures Appendix at the end of this report.