Baillieu Holst have re-affirmed Bionomics as a high-risk growth pick, raising the price target to $1.10

Livewire Equities

Livewire

Baillieu Holst have re-affirmed Bionomics as a high-risk growth pick, raising the price target to $1.10. Bionomics secured a new research collaboration with Merck & Co... on BNC375, which in pre-clinical has shown evidence that it can treat Alzheimer's as well as other disorders of the Central Nervous System. Merck will now fund all R&D related to BNC375, and will pay Bionomics US$20m upfront and US$506m in milestone payments. This is a remarkable deal for a drug that has yet to be taken to the clinic and evidence both of the high demand for new Alzheimer's drugs from Big Pharma, and the quality of Bionomics' R&D in the CNS field. Adjusting our model for the new BNC375 deal our probability-weighted DCF valuation is now $1.14 base case and $2.59 optimistic case. Our new target price of $1.10 (was $0.90) sits at around the low point of this range.


Livewire Equities
Livewire Equities
Livewire

The Livewire Equities feed brings you a range of insights that relate to Australian equities

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.