Motif Biosciences 'grossly undervalued' in antibiotic space

27 May 2015

Iclaprim, a new antibiotic from UK-based Motif Biosciences (AIM: MTFB), could fill a major market void and achieve over $1 billion in sales per year, according to analysts at Northland Capital Partners.

With antibiotic resistance a growing public health concern, specialist drug developers could stand to gain with innovative medicines. Iclaprim’s safety and efficacy is well-supported from tests in more than 1,000 patients, and could achieve $1 billion in annual sales. Phase III trials are expected to start in the second half of 2015.

Northland’s analyst Vadim Alexandre said in a research note that the company was ‘grossly undervalued’ and that its risk-adjusted discounted cash flow analysis indicates a fair value of 89 pence per share, indicating an upside of 187% to the current share price. Motif’s closest peer, Paratek (Nasdaq: PRTK), trades at a substantial premium to Northland’s target value for Motif.

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