Zacks analyst sees promising future for Spring Bank Pharma and its HBV candidate

Zacks Equity Research has initiated coverage of Spring Bank Pharmaceuticals (Nasdaq: SBPH), with a $33.00 price target based on estimates of a 2022 worldwide launch of the firm’s lead compound, SB 9200 either alone or with a global pharmaceutical partner. The stock is currently trading at $12.15.

Zacks analyst John Vandermosten notes that SB 9200 is a small dinucleotide developed as a prodrug using the company’s small-molecule nucleic acid hybrid (SMNH) platform technology. The product is designed to activate specific intracellular sensor proteins including RIG-I, NOD 2 and STING which activate the body’s immune system to fight viral infections including hepatitis B (HBV).

The company’s lead product is in Phase IIa trials for chronic HBV.  SB 9200 is pan-viral and could be a future treatment option in addressing certain viral respiratory diseases, HIV latency, hepatitis D (HDV) and potentially other diseases caused by RNA viruses. The compound functions by selectively modulating the antiviral signaling proteins, RIG-I and NOD2, in virally-infected cells. This selective immune-modulation has the capability to up-regulate the host immune response and potentially destroy the virally-infected cell.

Also has exciting pre-clinical immuno-oncology drug

SBPH also has a very exciting immuno-oncology drug in the pre-clinical phase that targets the STING (STimulator of INterferon Genes) protein. Initial work performed by Spring Bank and others pursuing this pathway have engendered a lot of interest and investment given the promising early-stage preclinical data.