Edison Issues Initiation on Akari Therapeutics

Jun 20, 2016, 08:17 ET from Edison Investment Research

LONDON, June 20, 2016 /PRNewswire/ --

Akari is a biopharmaceutical company advancing the clinical development of Coversin, a complement inhibitor derived from the saliva of a species of tick. Coversin shares a mechanism of action with the $2.59bn drug Soliris (Alexion, 2015 sales), and the company will be seeking approval for the same ultra-rare autoimmune hemolytic disorders as Soliris, as well as two other immune disorders without current treatments. The drug is currently in a dose ranging study and has successfully stabilized a Soliris-resistant PNH patient in a Phase II trial. Akari plans to initiate three Phase II programs in 2016. We currently value Akari at $23.17 per ADS.

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Using a risk-adjusted NPV analysis, we value Akari at $273m or $23.17 per ADS. We attribute approximately half of this valuation to the PNH program because of the established mechanism and substantial established market. We predict that the company will need $180m in additional funding before profitability in 2020. Currently all programs are modelled with a low success probability, but we expect to update our valuations following increased human data from clinical trials.  

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For more information please contact:
Maxim Jacobs, Edison Investment Research, +1-646-653-7027
Nathaniel Calloway, Edison Investment Research, +1-646-653-7036 healthcare@edisongroup.com

SOURCE Edison Investment Research