Analysts at WH Ireland think the market appears to be significantly undervaluing the opportunity for NetScientific PLC (AIM:NSCI) (NSCI) following the recent news from its Nasdaq-listed portfolio company PDS Biotechnology Corporation.
On October 11, 2022, PDS Biotechnology - in which NSCI holds a 4.72% stake - announced expanded interim data from a National Cancer Institute-led Phase II clinical study evaluating its lead candidate PDS0101 in combination with two Merck-owned immune-modulating drugs.
The combination is being studied in checkpoint inhibitor (CPI)-naïve - not previously treated with a CPI - and in CPI-refractory patients - those who are failing to respond to treatment - in advanced HPV+ cancers.
The WH Ireland analysts noted that the interim data outcomes support PDS’s previously announced decision to focus on the CPI-refractory group of patients and appear consistent with earlier findings in terms of safety, efficacy and durability.
Further news is due to be provided on advancing the development of this as well as PDS’s other Phase II programs, and the company has access to up to $35m via a venture financing agreement established in August, they added.
The WH Ireland analysts concluded: "In our view, the market appears to be significantly undervaluing the opportunity given the novelty of the treatment approach and the poor rates of survival in advanced cancers."
They said their risked-based valuation of NSCI’s 4.72% stake in PDS is 59.9p per share, which is around 30% of their risked-based sum-of-the-parts (SOTP) fair value for NSCI of 200p per share.
NSCI shares closed trading at 60p on Wednesday, up 7% on the previous session.