PaxMedica, Inc. (PXMD) has received a new Buy rating, initiated by H.C. Wainwright analyst, Boobalan Pachaiyappan.
Boobalan Pachaiyappan has given his Buy rating due to a combination of factors surrounding PaxMedica, Inc.’s innovative approach to treating neurological disorders. His optimism is grounded in the progress and potential of suramin, a century-old molecule with a broad range of clinical applications, now being repurposed by PaxMedica. The company has taken a significant step by being the first to conduct a controlled clinical study based on FDA inputs, with promising results for treating Stage 1 Trypanosoma Brucei Rhodesiense Human African Trypanosomiasis (S1 TBR HAT). Moreover, the possibility of PaxMedica receiving a Priority Review Voucher (PRV) upon successful New Drug Application (NDA) submission and approval, which could be sold for substantial capital, further bolsters the Buy rating.
The rationale behind the Buy rating also takes into account the strategic value of the PRV in advancing PaxMedica’s pipeline. Although the commercial potential of PAX-101 in the S1 TBR HAT market is uncertain due to its limited prevalence in the US and the lack of a robust payment network in affected African countries, the main objective appears to be acquiring a PRV to secure non-dilutive funding. This strategy could significantly support the company’s future developments, especially considering the stable PRV market where vouchers have consistently been sold for high values. Thus, Pachaiyappan’s $3 price target reflects these strategic moves and the underlying potential of suramin in treating not only S1 TBR HAT but possibly other neurological disorders like autism spectrum disorder (ASD).
Pachaiyappan covers the Healthcare sector, focusing on stocks such as Brainsway, Gain Therapeutics, and Entrada Therapeutics Inc. According to TipRanks, Pachaiyappan has an average return of -2.8% and a 28.21% success rate on recommended stocks.
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PaxMedica, Inc. (PXMD) Company Description:
PaxMedica Inc an early clinical stage biopharmaceutical company focusing on the development of anti-purinergic therapies (or APT), for the treatment of neurodevelopmental disorders, including autism spectrum disorder (or ASD), and Fragile X syndrome tremor-ataxia (or FXTAS). It focuses on the development and testing of its lead program, PAX-101, an intravenous formulation of suramin, in the treatment of ASD and FXTAS. It is also focused on the treatment of Human African Trypanosomiasis (or HAT). Its candidate PAX-102, proprietary intranasal formulation of suramin, as well as other new chemical entities that are more targeted and highly selective antagonists of particular purinergic receptor subtypes.
Read More on PXMD:
- PaxMedica prices 5.38M shares at $1.30 in public offering
- PaxMedica Inc. Featured in Syndicated Broadcast Highlighting FDA Type-B Meeting to Review PAX-101 Pivotal Trial Data
- PaxMedica files to sell 2.79M shares of common stock, warrants
- PaxMedica announces publication of ASD Phase 2 study results
- PaxMedica has engaged Bourne Partners
