Syntara (ASX:SNT) valuation assumes a $750 million licensing agreement for its drug candidate, SNT-5505, contingent on its approval in the US and European markets, with the potential for a bigger deal, according to a Thursday note by Euroz Hartleys.
SNT-5505 developed for the treatment of bone marrow cancer myelofibrosis, is currently in a Phase 2a clinical trial and interim data showed nearly 50% of patients reporting a greater than 50% reduction in symptom burden after 12 weeks, Euroz said.
Euroz estimates that SNT-5505 has a market opportunity exceeding AU$3.6 billion in treating sub-optimally managed myelofibrosis patients across the US and Europe, with the potential to grow over AU$11 billion.
SNT-5505's commercial potential is further supported by the increasing merger and acquisition activity and licensing deals in the myelofibrosis space, Euroz added.
Euroz believes that the drug candidate has the potential to become a first-line therapy for patients, which would involve a large and expensive trial. However, this could be attractive to a large partner.
Euroz Hartleys maintained its speculative buy rating for Syntara and an AU$0.30 price target.
Shares of the company fell past 1% in recent Friday trade.
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