Australia | Jun 21 2006
By Rudi Filapek-Vandyck
Human domain antibody specialist Domantis, which is 33% owned by Peptech (PTD), has been granted an important patent in Europe, protecting a significant portion of the company’s intellectual property regarding the technology for the use of domain antibodies (so-called "dAbs") that bind a drug to a patient’s serum albumin and extends its natural half-life significantly.
ABN Amro Morgans biotech and healthcare specialist Scott Power believes Domantis is poised to announce several partnership deals "over the near term" as management at the company expects several programs to enter clinical trials in 2007.
Currently, the valuation of Peptech’s Domantis shareholding is calculated by ABN Amro Morgans at a conservative 25% premium to the company’s original investment – A$50m or A$0.31 per share.
Scott believes, however, that the level of interest in antibodies would suggest that Peptech’s investment could easily be worth much more than A$80m (or A$0.50 per share).
It is therefore not difficult to see why Power believes Peptech’s near term share price drivers are likely to come from the Domantis business.
The freshly granted patent in Europe specifically protects Domantis’ "AlbudAb" technology, Scott explains. The composition of matter patent protects Domantis until 2023 and covers all major European markets.
Peptech shares were only up slightly this morning, trading at $1.28. ABN Amro Morgans has a twelve month price target of $1.70, suggesting more than 30% upside.
In April this year Domantis was chosen by FierceBiotech, an internationally recognized email newsletter covering the biotechnology and pharmaceutical markets, as one of the top 15 emerging biotech companies for 2006. The company has offices in the UK and the US.