Corporate broker finnCap provided positive commentary around peer-reviewed research on one of Destiny Pharma PLC's (AIM:DEST, OTC:DTTYF) lead assets.
The report in Microbiology Spectrum assessed NTCD-M3’s potential efficacy in C. difficile infections treated with a next-generation antibiotic called fidaxomicin, which has been included in US clinical guidelines for CDI treatment.
This new drug and its active metabolite stay in the gut longer, which could inhibit colonisation by bacteria such as Destiny's phase III-ready infection prevention drug, NTCD-M3.
Readers of the article were presented with research from the microbiology research laboratory at the Edward Hines, Jr. VA Hospital in the US. The study examined NTCD-M3 colonisation in a CDI model after administering fidaxomicin.
The paper concluded that NTCD-M3 effectively colonises the gut after fidaxomicin treatment, indicating that NTCD-M3 would work well in patients receiving this antibiotic and older antibiotics, such as vancomycin and metronidazole.
finnCap analysts told investors: “The demonstration of NTCD-M3’s ability to re-colonise the gut regardless of which anti-bacterial drug has been used first as a potential treatment for Clostridioides difficile infection further enhances NTCD-M3’s profile, and adds to the confidence of a positive outcome from the soon-to-be started Phase III programme with Destiny’s partner in the US, Sebela Pharmaceuticals.”
The broker repeated its 285p price target, a near ten-fold premium to the current price of 29p.