The broker FinnCap believes that Destiny Pharma PLC (AIM:DEST)’s lead assets have the potential to each generate over US$1bn in sales globally.
NTCD-M3, which is used for the treatment and prevention of clostridioides difficile, a bacteria that causes infection of the large intestine, is viewed as a “potentially class-leading asset” by the analysts.
It adds that it is the clinical-stage biotech company’s most advanced asset with a regulatory agreement with the US Food and Drug Administration (FDA) for Phase 3 clinical trial already in place.
The second asset, XF-73, is used in the prevention of post-surgical staphylococcal infections has a “clear regulatory path to European approval”, as well as “clarity from the FDA as to a US clinical trial design”
It is, however, further behind on preliminary discussions, with a deal not targeted until the first half of 2023.
The appetite for such a product is high, according to the broker, and the potential exists to generate US$1bn sales globally as well.
Destiny Pharma is currently in advanced discussions with commercial partners for both assets, with deals expected to be announced this year.
Earlier, the company announced it raised up to £7mln through the issue of shares for the advancement of the two assets.