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Sareum Holdings shares soar as Hybridan spotlights read-across from big US pharma takeover deal

The small-cap broker’s analysts noted that Bristol-Myers Squibb has agreed to acquire Celgene for US$74bn, with the combined entity to have six expected near-term product launches
Drug testing
They pointed out that includes Bristol-Myers Squibb’s TYK2 candidate, an inhibitor which is used as treatment for autoimmune conditions

Sareum Holdings Plc (LON:SAR) saw its shares soar higher on Thursday as analysts at Hybridan spotlighted a read-across from the launch of big pharma takeover deal in the US.

The small-cap broker’s analysts noted that Bristol-Myers Squibb Co. (NYSE:BMY) has agreed to acquire Celgene Corp (NASDAQ:CELG) for US$74bn, with the combined entity to have six expected near-term product launches, representing more than US$15bn in revenue potential.

READ: Sareum Holdings chairman says drug discovery group is making progress

They pointed out that includes Bristol-Myers Squibb’s TYK2 (Tyrosine Kinase 2) protein-coding gene candidate, an inhibitor which is used as a treatment for autoimmune conditions.

The analysts noted that they have previously mused that the inhibitive qualities of Sareum’s two candidates in the same space could mean that, along with other qualities, its assets could emerge as best in class.

They said their review of the clinical evidence so far suggests that Sareum’s JAK1 (Janus kinase) inhibitor – which is one of the same family as TYK2 - could provide some additional efficacy particularly in autoimmune conditions such as Psoriasis.

The analysts concluded that even with today’s share price jump – up 19% to 0.62p in late afternoon trading -- Sareum’s market cap of just £18mln makes the firm “arguably a bargain target for the relatively large group of Biotech and Pharma companies interested in TYK2 and the wider JAK inhibitor space.”

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