What Does Biogen’s Progress Mean for ProMIS?

Progress Made in Q3 Bodes Well for ProMIS’ Prospects

Is ProMIS’ Alzheimer’s Antibody Better Than Biogen’s?

Is ProMISâ€™ Alzheimerâ€™s Antibody Better Than Biogenâ€™s?

Virtual & In-person Roadshows / Conferences

Channelchek Premium. Access more at no cost. 

The site "channelcheck" is opened on the phone

Join the Channelchek Investor Community. Your name, email, zip, and investor type is all it takes to open the door to research reports, favorites tracking, and virtual and in-person roadshows / conferences. Even exclusive investment opps.

Take it to the next level. It doesn’t cost a penny.

Click “Log In” to agree to Channelchek.com <a href="#">Terms of Use</a> and acknowledge that Channelchek.com <a href="#">Privacy Policy</a> applies to you.

Welcome to the Channelchek Investor Community

Informed investors make more money. And it’s all about timing. Get it when it happens.

Inbox Intel from Channelchek.

Healthcare

Biotechnology

ProMIS Neurosciences Inc.

Investment Appraisal
In Q3/F2019, ProMIS Neurosciences continued advancing its programs to develop antibody therapeutics selectively targeting toxic oligomers, which play a causative role in neurodegenerative diseases such as Alzheimer&#8217;s disease (AD), amyotrophic lateral sclerosis (ALS), frontotemporal dementia (FTD) and Parkinson&#8217;s disease (PD). We still believe that progress on these indications could lure a big pharmaceutical or large biotechnology company to sign a partnership to further develop and commercialize ProMIS&#8217; antibody technology, which could potentially generate significant value for shareholders. 
Biogen&#8217;s recent news could have a positive impact on ProMIS&#8217; prospects. In our view, recent positive news by biotech bellwether, Biogen Inc., bodes well for smaller companies in Alzheimer&#8217;s disease area such as ProMIS Neurosciences. Earlier this month, Biogen had a change of heart as the company is now planning to file for FDA approval of aducanumab. It was a positive surprise for biotech investors, which have been disappointed with previous failures in Alzheimer&#8217;s area. 
Despite the positive impact of the news, we do not believe aducanumab is the right antibody to treat Alzheimer&#8217;s disease. We believe ProMIS&#8217; Neurosciences&#8217; PMN310 is a superior drug. Biogen&#8217;s aducanumab binds to amyloid-beta plaques, which are not thought to be the primary mechanism of disease. Instead, the consensus view among medical scientists is that Alzheimer&#8217;s disease is caused by toxic oligomers (small molecules) derived from amyloid-beta. These toxic oligomers behave and propagate like prions. Prions are misfolded proteins, virus-like (but without nucleic acid, DNA/RNA), capable of propagating a disease phenotype from neuron to neuron. ProMIS&#8217; antibodies, but not Biogen&#8217;s, selectively target these prion-like molecules. Although PMN310 is still in preclinical development, we believe it has the potential to become the preferred antibody for the treatment of Alzheimer&#8217;s.
ProMIS&#8217; Antibodies Bind the Right Target &#8211; In contrast to its competitors, ProMIS Neurosciences is developing a novel therapeutic approach targeting a completely different molecular entity. Instead of binding plaques, ProMIS&#8217; lead drug PMN310 binds selectively to toxic oligomers in the brain of Alzheimer&#8217;s patients, which the scientific literature recognizes as the true culprits of disease (The Journal of Neuroscience, 2017, 37(1) p152-163). In our opinion, ProMIS&#8217; preclinical results validate the hypothesis that PMN310 has the potential to become an efficacious drug for the treatment of Alzheimer&#8217;s disease. Management is currently completing IND enabling studies to advance the drug into human clinical trials, which are expected to commence in 2020. 
ProMIS continues to advance its R&amp;D programs. In the quarter, the company published data from studies on the use of Alzheimer&#8217; antibody PMN310 on the journal &#8220;Scientific Reports&#8221;, which is a member of the prestigious &#8220;Nature Research&#8221; family of publications. The article is entitled &#8220;A Rationally Designed Humanized Antibody Selective for Amyloid-Beta Oligomers in Alzheimer&#8217;s Disease&#8221;. On the paper, the authors demonstrated that monoclonal antibodies designed to recognize a &#8220;conformational epitope&#8221;, predicted by computational modeling, inhibited prion-like propagation and toxicity in neurons. This &#8220;conformational epitope&#8221; is only present on toxic oligomers of amyloid-beta, but not on amyloid-beta monomers or plaques. ProMIS&#8217; antibodies prevented memory loss in a mouse animal model, and reduced synaptic loss and inflammation. PMN310 showed a superior safety and efficacy profile relative to other antibodies, which could potentially translate into higher potency as a candidate treatment for Alzheimer&#8217;s disease. 
Also in the quarter, Dr. Johanne Kaplan (ProMIS&#8217; Chief Development Officer) and Dr. Neil Cashman (Chief Scientific Officer), made presentations on the use of the company&#8217;s antibodies for the potential treatment of Alzheimer&#8217;s and ALS/FTD, respectively, at the 2019 AAIC (Alzheimer&#8217;s Association International Conference) Annual Meeting. 
ProMIS Advances ALS Program Targeting Toxic Form of TDP-43. In the quarter, ProMIS Neurosciences announced yesterday that it has generated antibody candidates for the treatment of amyotrophic lateral sclerosis (ALS). Amyotrophic lateral sclerosis is the most common motor neuron disease (Neurotherapeutics 2015, 12, p352-363). It is characterized by rapidly progressive muscle weakness, loss of upper and lower motor neurons from the spinal cord, brain stem and motor cortex, and muscular wasting, leading to paralysis and death due to respiratory failure within 1 to 5 years from the start of the illness (J Exp Med 2012, 209, p889-893). 
ProMIS&#8217; antibodies target the neurotoxic form of &#8220;TAR DNA-binding protein 43&#8221; (TDP-43). The prevailing hypothesis to explain the pathogenesis of ALS relies on the role of toxic oligomers, which are derived from TDP-43. These toxic oligomers behave and propagate from neuron to neuron like prions and could be targeted with ProMIS&#8217; blocking antibodies. 
Lou Gehring Disease &#8211; ALS is well known in the United States as famous New York Yankees baseball player Lou Gehrig was diagnosed with the disease in 1939. There are two forms of ALS, familial (genetic) and sporadic. The sporadic form has the highest incidence (90-95% of patients). It occurs predominantly in patients between 40 and 60 years of age. 
Targeting TDP-43 &#8211; ProMIS&#8217; anti-TDP-43 antibodies selectively recognize toxic oligomers derived from TDP-43, but it does not bind the normal TDP-43 protein, which is found in the nucleus of cells. Like ALS, frontotemporal dementia (FTD) is also caused by misfolded toxic oligomers derived from TDP-43. TDP-43 is a 414 amino acid protein, which belong to the ribonucleoprotein family (binds RNA). TDP-43 contains two RNA binding domains. Studies in experimental models in vitro have demonstrated that TDP-43 (J Biol Chem 2011, 286, p18664-18672) can generate toxic oligomers, which behave in a prion-like fashion spreading the disease phenotype (Nature Communications 2018 (October 11), 9:4220). Using a model in vitro with cells transduced with TDP-43, neuron to neuron prion propagation was demonstrated (Cell Rep 2013, 4, p124-134; PNAS 2011, 108, 16398-16403). Thus the prevailing hypothesis is that ALS, like Parkinson&#8217;s and Alzheimer&#8217;s diseases, is also caused by neurotoxic effects of misfolded prion-like oligomers. 
Financial results were in line with our expectations (all figures in Canadian dollars). ProMIS announced yesterday financial results for Q3/F2019. The company reported a net loss of $1.6 mm compared to a net loss of $2.9 mm in the corresponding period in prior year. Included in the net loss for Q3/F2019 were non-cash expenses of $134,634, representing share-based compensation and amortization of an intangible asset, compared to $385,951 for the corresponding period last year. 
The decrease in net loss was attributed to relatively lower costs related to research programs, lower patent costs, and share-based compensation, reduced consultant salaries. Research and development expenses in Q3/F2019 were $1.05 mm compared to $1.87 mm in Q3/F2018, which reflects reduced costs for research programs, and lower contracted research salaries and share-based compensation. General and administrative expenses for the three months ended September 30, 2019 were $0.58 mm, as compared to $1.04 mm in the three months ended September 30, 2018.&nbsp; 
In November 2019, ProMIS announced a non-brokered private placement of up to $6.5 mm. The first closing in the amount of $2.055 mm in gross proceeds is planned for November 15, 2019. The company will issue 32.5 million units with a price per unit of $0.20.&nbsp;Each unit will consist of one common share and one share purchase warrant , which will entitle the holder thereof to purchase one share at an exercise price of $0.35 per share at any time through the fifth anniversary of the offering. Management plans to use the proceeds from the offering to advance the company&#8217;s antibody therapeutic candidates targeting toxic oligomers responsible for neurodegenerative diseases, for working capital and general corporate purposes. &nbsp;
 Reiterating Outperform Rating. We believe that ProMIS Neurosciences will emerge as a leader in Alzheimer&#8217;s area with a potentially disease modifying therapy. In our opinion, the value of ProMIS&#8217; unique antibody discovery platform is not reflected on the company&#8217;s current share price. ProMIS&#8217; technology enables the discovery and synthesis of therapeutic antibodies targeting toxic oligomers for the treatment of neurodegenerative diseases. Management plans to use biomarkers to better monitor the efficacy of its antibodies in human clinical trials. As the company continues to generate validating results in experimental models, we believe management will be in a position to execute a high value partnership, which could act as a positive catalyst for the stock. We are reiterating our Outperform Rating and $1.00 target price.

ProMIS Neurosciences Inc. (PMN:CA)

Progress Made in Q3 Bodes Well for ProMIS’ Prospects

Fundamental Analysis:

Rating: Log in to view

What Does Biogen’s Progress Mean for ProMIS? (PMN:CA)

Progress Made in Q3 Bodes Well for ProMIS’ Prospects (PMN:CA)

Is ProMIS’ Alzheimer’s Antibody Better Than Biogen’s? (PMN:CA)

Is ProMISâ€™ Alzheimerâ€™s Antibody Better Than Biogenâ€™s? (PMN:CA)

Inbox Intel from Channelchek.