Rakovina Therapeutics Inc (TSX-V:RKV) is a catalyst-heavy oncology story, analysts at Atrium Research believe.
As noted by the analysts in a note to clients, the drug developer’s portfolio is based on three novel series of DNA Damage Response Inhibitor (DDRi) drug candidates: kt-2000, kt-3000, and kt-4000, each of which targets a specific shortcoming of existing Food and Drug Administration (FDA)-approved PARP inhibitor (PARPi) treatments for cancers.
They pointed to upcoming catalysts for Rakovina, the first being its lead program kt-3000, designed to inhibit both PARP and HDAC enzymes, entering human clinical trials in the first half of 2024.
Another catalyst is lead candidate optimization and partnership opportunities for its kt-2000 program expected in the second half of 2024, the analysts said.
Rakovina’s team has a strong track record, they also noted.
“Rakovina’s board and management team brings over 290 years of experience in the pharma industry with much of the team leading, creating, and building several successful drugs that were sold to big pharma firms,” they wrote.
They also highlighted the company’s collaboration with the University of British Columbia (UBC), which gives Rakovina access to world-class research infrastructure.
“RKV’s management team and partnership with UBC far exceed what we would expect from a less than $10 million market capitalization company,” the analysts wrote.
At its current valuation, the analysts wrote that Rakovina presents a tremendous upside potential if its management team can execute.
“Rakovina is currently only trading a $8.7 million market cap despite making major developments across all three of its kt series of compounds and being backed by a world-class team,” they wrote.
“DDRi is dominated by Big Pharma firms that have acquired and invested in many prospective candidates, making RKV a potential takeout candidate.”
Contact the author at emily.jarvie@proactiveinvestors.com
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