Nine Meters Biopharma (NMTR) is a biotechnology company focusing on patients with gastrointestinal issues for which no treatments currently exist, explains Adam Johnson, growth stock expert and editor of Bullseye Brief.
The pipeline includes two drug candidates: Larazotide for Celiac disease, characterized by extreme gluten intolerance affecting one percent of the population — and Vurolenatide for short bowl syndrome (SBS), a condition where the patients cannot absorb sufficient nutrients due to partial removal of the gut.
Catalysts for 2021 include:
• Phase III topline data for larazotide (3Q/4Q).
• Phase IIb initial readout mid-summer for vurolenatide, with final data in Q4.
• Phase III follow-on trial for vurolenatide concurrent with an FDA new drug application in Q4 or early 2022.
• Separately, Italian authorities are overseeing an exploratory Phase I trial using larazotide as a tight junction regulatory for Covid patients experiencing decreased lung function.
Several executives purchased $450k worth of stock in April, and a secondary offering of $32M in December was oversubscribed — led by well-known biotech specialist OrbiMed Advisors, which retains a seat on the board.
Meanwhile, the company owns 100% of the global rights to its drug candidates; in addition, Nine Meters Biopharma possesses 150 related patents worldwide.
My target of $11 reflects a very conservative 2x multiple on 2025 sales estimates of $2.2B discounted back to the present at 5%, should both drug candidates receive FDA approval.
