PaxMedica (NASDAQ: PXMD) Featured in H.C. Wainwright Report with ‘Buy’ Rating, $3 PT

December 5, 2023 11:31:47

PaxMedica (NASDAQ: PXMD), a biopharmaceutical company focused on advancing treatments for neurological disorders, is spotlighted in a recent H.C. Wainwright & Co. research report. The report “is initiating coverage on PaxMedica, an emerging firm developing novel formulations of suramin for treatment of neurological disorders with intractable symptoms,” which is “attacking autism with a novel approach.” The report noted that PaxMedica was the first company to design and execute a controlled clinical study based on the agency’s inputs, with top-line data based on retrospective analysis of medical records being presented in November 2023 that “showed PAX-101 (intravenous suramin) clinical meaningfulness in S1 TBR HAT, suggesting clinical derisking was achieved.” The report stated that the company is planning to file a New Drug Application (“NDA”) next year that will make PaxMedica eligible to receive a Priority Review Voucher (“PRV”) that could be sold for more than $100 million if approved. “We have assessed PaxMedica using a discounted cash flow -based valuation methodology, which ascribes an 11% discount rate and 2% terminal rate of decline to the company’s future cash flows,” the report states.

“In our view, these parameters appropriately define the risk associated with the company’s PAX-101 program in [autism spectrum disorder] (‘ASD’), while also taking into account the future generic erosion that may occur at the end of the lifespan of PaxMedica’s intellectual property estate. We also utilize a 30% probability of approval for PAX-101 in ASD, which reflects the well-characterized nature of suramin as a compound with a long history of usage in human subjects as well as the proof-of-concept data from earlier-stage studies in patients with autism. Our assumptions derive a $60M total risk-adjusted value for PAX-101. This yields a 12-month price objective of $3 per share, assuming roughly 19.2M fully-diluted shares outstanding as of end-2024. . . . Our rating is Buy with a 12-month price target of $3 per share.”

To view the full research report, visit https://ibn.fm/XMAnK

About PaxMedica Inc.

PaxMedica is a forward-looking, clinical-stage biopharmaceutical firm specializing in cutting-edge, anti-purinergic drug therapies (“APT”) aimed at addressing a range of challenging neurologic disorders, including autism spectrum disorder (“ASD”) and human African trypanosomiasis (“HAT”). The company’s portfolio encompasses critical areas within the neurology field, with a focus on pioneering advancements in both ASD and HAT treatments. PaxMedica is dedicated to the continuous development and evaluation of its pioneering program, PAX-101, an intravenous suramin formulation that lies at the heart of the company’s efforts, particularly focused on innovative ASD and HAT treatment solutions. The company’s ongoing research initiatives not only prioritize the needs of ASD and HAT patients but also extend to exploring potential therapeutic applications for related conditions. For more information about the company, visit www.PaxMedica.com.

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