A Phase 2 Study for this Biotech Stock Could Provide A 97% Gain
Pulmatrix, Inc. (NASDAQ: PULM), a clinical stage biopharmaceutical company focused on developing novel inhaled therapeutics to serve unmet needs in respiratory disease, and Cipla Technologies LLC, announced their entry into a Definitive Agreement for the co-development and commercialization of Pulmazole™ (PUR1900) – an inhaled iSPERSE™ formulation of the anti-fungal drug itraconazole for the treatment of allergic bronchopulmonary aspergillosis (ABPA) in patients with asthma.
According to PR Newswire,
“Cip Tec will make an upfront payment of $22 million to Pulmatrix in exchange for assignment of all rights for Pulmazole in relations to pulmonary indications to Cip Tec. Thereafter, both parties will equally share costs related to the future development and commercialization of Pulmazole, and equally share worldwide free cash flow from future sales of Pulmazole.
Pulmatrix will remain primarily responsible for the execution of the clinical development of Pulmazole, and Cip Tec will be responsible for the commercialization of the product. The partnership will be overseen by a Joint Steering Committee with equal representation from both companies.”
This agreement puts Pulmatrix in a strong position to complete the Phase 2 study entitled: ‘A Randomized, Double-Blind, Multicenter, Placebo-Controlled, Phase 2 Study to Evaluate the Safety, Tolerability, and Pharmacokinetics of Itraconazole Administered as a Dry Powder for Inhalation (PUR1900) in Adult Asthmatic Patients with Allergic Bronchopulmonary Aspergillosis (ABPA)’.
Pulmatrix plans to initiate the study in April 2019.
Robert W. Clarke, Ph.D., Chief Executive Officer of Pulmatrix, commented: “Cipla’s expertise in respiratory drug development and manufacturing strengthens our development program while its global commercialization experience and footprint will enable us to bring this novel therapeutic option to patients suffering from ABPA.
This is also an important financial milestone for the company, securing adequate funds to complete the Pulmazole Phase 2 study, along with 50% commitment from Cip Tec for future Pulmazole development and commercialization costs while retaining worldwide rights to 50% of the free-cash-flow from future revenues.”
Umang Vohra, Managing Director and Global Chief Executive Officer of Cipla, added: “Pulmazole will be Cipla’s entry into the branded respiratory space and will serve a vital unmet medical need for the treatment of ABPA, a condition that possibly impacts over 2 million patients worldwide but has no labelled drug.
Pulmatrix has a capable development team and a strong intellectual property (IP) estate through its iSPERSE delivery platform. This creates potential to expand the scope of this collaboration and extract synergies from Cipla’s long-established in-house capability in the development of inhalation therapy solutions.”
This partnership secured the funds that are necessary for the company to complete a Phase 2 study and if successful, this could be enough to boost the stock to all-time highs.
PULM should be considered a buy if momentum increases.
Look for an entry at $1.10 with a price target of at least $2.17 based on the pattern in the chart.