Redx Pharma Plc's (LON:REDX) BTK inhibitor progamme is highly promising and should spark interest from potential pharma partners.
That's the view of house broker Cantor Fitzgerald, which says it is a good example of the group targetting an area where resistance in cancer patients from the current commercial market therapy is only just emerging.
Last week, Redx said it had selected RXC005 - a Bruton's tyrosine kinase inhibitor, or BTK inhibitor for short - to take into clinical development.
It has been designed for people with chronic lymphocytic leukaemia, including those who are resistant to the current best-in-class treatment called ibrutinib.
First-in-human clinical trials are expected to get underway in early 2018.
Ibrutinib has been an outstanding commercial success for founder Pharmacyclics, partner J&J and new owner Abbvie Inc (NYSE:ABBV) however resistance to the therapy is beginning to emerge, providing an opportunity for Redx, notes the broker.
This was underlined by Abbvie's acquisition of Pharmacyclics for US$21bn.
"We believe such a candidate would have a broad appeal both to those companies who desire to retain an existing BTK franchise (perhaps as 2nd line treatment after current irreversible has failed) or those who wish to enter this large and growing market."
Cantor rates Redx a 'buy' and targets 105p a share (current price: 46.5p), based on a discounted cash flow valuation.