Nanoparticles with mega potential - that’s how the biotech team at American investment bank Jefferies described Nanobiotix SA (EPA:NANO), which has developed a unique method of amplifying radio-therapy.
Jefferies Wednesday initiated coverage of stock in the company with a ‘buy’ rating and €26 a share price target. That’s 32% above the current price of €19.66.
The company has developed NBTXR3, which is injected directly into solid tumours to amplify the effects of tumour shrinking treatment.
It has already demonstrated success tackling soft tissue sarcoma, a cancer that affects muscle, fat and blood vessels.
It is now being trialled across seven separate cancer indications.
Analyst Peter Welford believes the treatment has “blockbuster potential” if is widely adopted.
“As a one-time treatment that is fully compatible with standard radiotherapy protocols, NBTXR3 could be used in around 60% of radiotherapy-treated cancers,” he said.
The analyst estimates worldwide peak sales for use in soft tissue sarcoma (STS) could be in the order of US$175mln, while head and neck cancer is a far bigger market for Nanobiotix at US$550mln a year.
However, the product could generate US$1.4bn a year for the business if it is more widely adopted, Welford reckons.
The current valuation only takes into account NBTXR3’s use in STS and head and neck cancer.
“NBTXR3 could also act as an in situ vaccine with radiotherapy to aid transforming tumours from ‘cold’ to ‘hot’ with highly immunogenic targets, suggesting a potentially lucrative combo with immuno-oncology agents,” the analyst pointed out.