Biotechnology newsletter "Prohost Biotech" includes Prolor Biotech Inc. (AMEX: PBTH; TASE: PBTH) in its list of undervalued shares of companies with breakthrough technologies expected to positively influence the biotech industry. The newsletter believes that Prolor is on the right track to grabbing its first big portion of the large protein therapeutics market as early as the first quarter of 2013.
"Prohost Biotech" says, "The firm’s technology has demonstrated success in extending the half-life of protein therapeutics. This advancement is significant, as proteins in general have short half-lives. Extending the half-life of proteins increases their stability in the plasma, and improves their pharmacokinetic and pharmacodynamic profiles, which renders the therapeutics safe, effective and cost-effective, in addition to increasing patient compliance. Instead of requiring daily injections, patients would inject the drugs only once a week, or less frequently.
"Prolor’s promising technology means a lot because many conventional technologies have failed to extend proteins’ half-lives without compromising their actions or safety. The number of first generation therapeutic proteins has grown rapidly over the last decade. Annual worldwide sales are estimated to be over $35 million. Their producers face many problems, including patent expirations of their blockbuster products and competition from small molecule alternatives and biosimilars. In short, next-generation therapeutic proteins are expected to have extended half-life versions."
The newsletter notes that Prolor's human growth hormone, hGH-CTP, is headed for a Phase III clinical trial on adults and a Phase II trial on children. It adds that the company has enough cash to last through 2012, and expect the company to have much exciting news in 2012, which could boost the value of its shares. This news includes the results of the clinical trials, as well as results from other drugs in the company's pipeline. "The most important stimuli that would boost PBTH are the firm’s filing for hGH-CTP approval for adults in the second half of the year and attracting new partners, bringing in more cash to its coffers."
"Prohost Biotech" says that investors who got bored from the lack of news from Prolor while it was testing hGH-CTP overlooked the news that was there, such as the approval of Merck & Co's (NYSE: MRK) approval for its extended half-life follicle stimulating hormone produced through CTP technology, provided proof of concept for Prolor’s technology. Investors who sold Prolor share also overlooked the huge market Prolor can secure working its CTP procedure to extend the half-life of blockbuster therapeutic proteins that are losing their patents and of the unlimited number of newly discovered proteins that promise playing major roles in the treatment of various diseases.
Prolor's share price rose 2.8% by early afternoon on the TASE today to NIS 20.57, after rising 2.7% on the American Stock Exchange yesterday to $5.35, giving a market cap of $190 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2012
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