Corporate broker finnCap has raised its price target for Poolbeg Pharma PLC (AIM:POLB, OTCQB:POLBF) in the wake of encouraging data from the drug developer’s lead asset.
Earlier, the company described POLB 001 as a potential "blockbuster" after it announced results from its bacterial lipopolysaccharide human challenge trial for POLB 001.
The small molecule immunomodulator is being developed to treat severe influenza and other acute inflammatory conditions.
The study involved 36 healthy volunteers, who were aged between 18 and 55.
POLB 001 was found to be safe and well-tolerated, and it had a “potent effect on systemic and localised inflammatory response” in a dose-dependent manner.
“The positive data validates the POLB 001 mechanism of action as an acute anti-inflammatory approach, de-risks the programme and increases the likelihood that it could be partnered and generate a good return on investment for shareholders,” said finnCap in a note to clients.
It has raised its discounted cash flow price target to 19p from 15p a share.
In morning trade, Poolbeg stock was changing hands for 10.03p, up 1.53p.