Edison Expands North American Healthcare Sector Coverage With Initiation of Coverage on Bellus Health

LONDON, May 31, 2013 /PRNewswire/ --

Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Bellus Health (TSX: BLU), a Canadian pharmaceutical company developing drugs for amyloid-related diseases.

Edison has recently published a comprehensive report examining the investment merits of Bellus Health, focusing on the company's lead programme, Kiacta, currently in a pivotal Phase III trial for amyloid A (AA) amyloidosis, an orphan drug indication affecting up to 50,000 patients worldwide. In the report, Pivotal play in rare kidney disease, Edison's Canadian-based healthcare analyst, Pooya Hemami, argues that Bellus' investment case is underpinned by Kiacta's 60% probability of success in the pivotal study (based on positive trends in a previous Phase II/III study), the potential for premium pricing and a seven- to-10-year orphan drug market exclusivity period. With the Kiacta trial results not expected until 2017, a long-term view is required, but importantly, Bellus is fully funded until the data read out. Based on a risk-adjusted NPV analysis, Edison values Bellus at C$31m, or C$0.74 per share (fully diluted).

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For the full report see: http://www.edisoninvestmentresearch.com/research/company/bellus-health

The launch of coverage on Bellus Health is part of a programme of research initiations on healthcare companies worldwide. Edison provides research coverage on more than 130 healthcare companies in Europe, North America and Australia. Edison has pioneered a scientific, detail-oriented approach to analysing companies in the healthcare sector that is delivered in a concise and non-promotional manner. It aims to inform investors, while providing a realistic assessment of the competitive strengths and threats to key drug development programmes. All facts are carefully sourced and the analysis is underpinned by comprehensive and rigorous financial models. Edison's reports provide an overall company valuation without any specific stock recommendation.

All reports published by Edison are available to download free of charge from its website http://www.edisongroup.com.

About Edison Investment Research

Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support its capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Berlin, Sydney and Wellington. Edison is authorised and regulated by the Financial Services Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

About Bellus Health

Bellus Health is a Canadian pharmaceutical company developing drugs for amyloid-related diseases. Its lead candidate, Kiacta, is in a pivotal Phase III trial for amyloid A (AA) amyloidosis. BLU8499 is expected to start a Phase IIa study in Alzheimer's disease in 2014. Vivimind, a nutraceutical product for memory support, is marketed through distribution agreements with multiple partners in several countries, including Italy, Canada and Greece. For more information, visit http://www.bellushealth.com.

For more information please contact:
Pooya Hemami, Edison Investment Research, +1-514-475-2384
healthcare@edisongroup.com

SOURCE Edison Investment Research



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