Due to a higher probability of success in current clinical
trials (results due in mid-2019), target price increased to
NIS 1.12
Equity Research is published in the framework of the Tel
Aviv Stock Exchange (TASE) Analysis Program
TEL AVIV, Israel, Oct. 11, 2018 /PRNewswire/ -- The TASE
analysis project was launched in 2016 in order to raise the
investors' level of knowledge of TASE listed technology and
life-science companies and the markets in which the companies
operate, thus creating appropriate pricing and increasing the
exposure of investors from Israel
and abroad. Its goal is to encourage investments in these companies
by removing the barrier of lacking understanding in the market.
In order to maintain professional, independent and unbiased
analysis, the companies signed an agreement with the TASE to
receive the analysis services for an obligatory period of two
years. The companies cannot withdraw from the project during this
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funding from the Chief Scientist and the TASE.
Summary of Highlights
Kadimastem published an immediate report on October 9, 2018. The company reported on the
world's first transplantation of embryonic stem cells and
the completion of 5 patients' enrollment for Cohort A. The
very success of the implantation is an initial confirmation of the
safety of cellular therapy:
- The company performed the world's first astrocytes cell
transplantation in the first ALS patient. Final results will be
published in mid-2019 for the first group
- Cell transplantation is a scientific breakthrough in that it is
first performed in humans as part of a clinical trial. The
innovative technology developed in KadimaStam by Prof. Michel Revel, Chief Scientist of the company,
and Dr. Michal Yizrael, Deputy Director General of R & D of
Neurodegenerative Diseases, is a unique approach to cell
transplantation that produces healthy cells that function instead
of cells that have been infected with the disease, ALS, thus
forming a kind of spare part in the nervous system.
- The clinical trial examines the safety and efficacy of cellular
therapy after cell transplantation. The company has invested more
than $ 40 million to develop the
company's technology.
- In the first analysis report we published on June 12, 2018, we reviewed all activities of
Kadimastem with details regarding the trial and its
significance.
In our view, this means confirming our assessment of the
progress of the clinical trial. The expected results of the
experiment in mid-2019 are known and included in our economic
model. However, the recruitment of 5 patients and successful
transplantation increases the probability of success of the entire
clinical trial. We will examine the continued recruitment of
patients and analyze it in our upcoming quarterly report.
Thus, we raise our valuation for the company to NIS 69 million (our previous estimate was
NIS 52 million), at a target price of
NIS 1.03 to NIS 1.21; Average of NIS
1.12.
- See more for details in our Initiation of Coverage report dated
June 12, 2018 for details on our
valuation methodology.
About the company - Kadimastem Ltd. (hereinafter "Kadimastem" or
"the company") is a clinical stage biopharmaceutical company that
specializes in developing different types of human body cells
(known as differentiated cells) – such as neural cells (e.g.
oligodendrocytes and astrocytes) and insulin secreting beta cells,
derived from human embryonic stem cells. The company has its
technological platform and two current stem cell based
therapies in research phase – AstroRx (consists of astrocytes, a
type of brain cell) and Encapsulin (insulin secreting beta cells)
for treating amyotrophic lateral sclerosis (ALS) and diabetes
respectively.
About Frost & Sullivan
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Growth Partnership Company, works in collaboration with clients to
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and related growth opportunities that will make or break today's
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developing growth strategies for the global 1000, emerging
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Contact:
Kristi Cekani
Corporate Communications - Frost & Sullivan, Europe
P: +39.02.4851.6133
E: kristi.cekani@frost.com
http://www.frost.com
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SOURCE Frost & Sullivan