Poolbeg Pharma PLC (AIM:POLB, OTC:POLBF, FRA:POLBF)shares rose as much as 10% in Tuesday morning trading after the AIM-listed biopharmaceutical company secured its first national patent grant for POLB 001.
This is the drug developer's lead candidate for preventing a serious side effect of cancer immunotherapy.
In a note, Cavendish argues that the patent approval strengthens the asset's appeal to potential licensing partners ahead of a key clinical readout later this year.
IP Australia, the Australian patent office, protection covering the use of any p38 MAPK inhibitor, including POLB 001, for the prevention of cytokine release syndrome (CRS), a potentially life-threatening immune overreaction that can occur in patients receiving cancer immunotherapy treatments.
Cavendish, which acts as corporate broker to Poolbeg and maintains a 'buy' rating with a 19p target price against Tuesday's price of around 4.4p.
It said the grant further strengthens POLB 001's global patent estate and should enhance the asset's value in the eyes of potential strategic partners.
The broker noted that the most significant near-term catalyst remains the TOPICAL clinical trial, which is investigating POLB 001 as a preventative treatment for CRS in patients with relapsed or refractory multiple myeloma receiving Johnson & Johnson's bispecific antibody teclistamab. Interim data is expected in the second half of 2026.
Cavendish argued that a positive trial readout could trigger partnering discussions and represent a material value inflexion point, noting that pharmaceutical companies typically require demonstrated clinical efficacy as a de-risking condition before committing to licensing agreements.
The broker also pointed to favourable sector timing, with major pharmaceutical companies facing an estimated $300 billion patent cliff between 2025 and 2030, a dynamic it said was already driving a noticeable increase in partnering and merger activity.
Cavendish estimated the total market opportunity for POLB 001 in cancer immunotherapy-induced CRS at more than $10 billion, based on independent research commissioned by Poolbeg.
The company also has an oral GLP-1 proof of concept trial underway, targeting obesity treatment, with data also expected within the next six to 18 months and a cash runway extending into 2027.