Monoclonal antibodies are a >US$70bn drug class. This Aussie company is set to revolutionise that market
AT NDF Research we love being the first to cover promising Life Sciences companies. Today we're initiating on AdAlta, a Melbourne-based drug developer that did its IPO last month with Platinum Asset Management as a substantial shareholder. AdAlta is focused on a new class of protein therapeutic called the i-body. Monoclonal antibodies are a workhorse of modern medicine with global sales of >$US70bn pa. But they are expensive to make and their molecule size makes them too big for use against many important drug targets. They also require heavy dosing and this must be delivered by intravenous infusion. AdAlta's antibody-like drugs, called i-bodies, have the same target specificity and affinity as monoclonal antibodies, but are about 90% smaller. They will also likely be cheaper to make, easier to administer and capable of addressing difficult-to-treat diseases such as fibrosis. We see considerable upside for AdAlta given the high valuation that validated antibody and antibody-like platforms tend to trade for. Like a Belgian company called Ablynx, market cap US$770m. At the moment you can get AdAlta for just A$24. Visit (VIEW LINK)
I am an equity research professional who worked in stockbroking from 2001 to 2015. After 15 months doing investor relations I returned to equity research with the founding of NDF Research. With Marc Kennis I founded Pitt Street Research in July 2018.