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