##{"id":58628,"date":"2011-08-05T10:21:56","date_gmt":"2011-08-05T00:21:56","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2011\/08\/05\/bionomics-a-spec-buy-for-anti-anxiety-treatment\/"},"modified":"2017-01-30T13:46:18","modified_gmt":"2017-01-30T02:46:18","slug":"bionomics-a-spec-buy-for-anti-anxiety-treatment","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2011\/08\/05\/bionomics-a-spec-buy-for-anti-anxiety-treatment\/","title":{"rendered":"Bionomics A Spec Buy For Anti-Anxiety Treatment"},"content":{"rendered":"

\n\t– Bionomics<\/span> enjoying good early trial results for BNC210<\/span>
\n\t– The BNC210<\/span> compound is an anti-anxiety treatment without side effects
\n\t– Market is large, Bionomics<\/span> also developing an anti-cancer compound
\n\t– Bell Potter rates Bionomics<\/span> a Speculative Buy<\/strong><\/p>\n

\n\tBy Chris Shaw<\/p>\n

\n\tAustralian biotech junior Bionomics<\/span> ((BNO<\/span>)) has, according to Bell Potter, received outstanding Phase Ib<\/span>\/IIa<\/span> clinical data on the performance of BNC210<\/span>, which is an an anti-anxiety drug the company has been developing.<\/p>\n

\n\tBell Potter suggests the qualities of BNC210<\/span> make it an ideal candidate for an early licensing deal, as the drug has been shown to relieve anxiety quickly without causing sedation or being addictive. These are two common side effects of existing anti-anxiety medications.<\/p>\n

\n\tThe anti-anxiety market is large, Bell Potter noting around 18% of the US adult population will suffer an anxiety disorder this year, with 4% to experience a severe form. The economic costs of anxiety in the US market alone have been estimated to be as high as US$120-$130 billion annually, while the global market for anti-anxiety drugs is estimated at US$5-12 billion annually.<\/p>\n

\n\tBell Potter suggests the anxiety disorder patient population is probably growing around the world, as for example in Australia in 2007 14.4% of the adult population had an anxiety disorder, up from a comparable figure of 9.7% in 1997.<\/p>\n

\n\tAt the same time existing anxiety drugs are inadequate, as Bell Potter notes while benzodiazepines can be effective in treating anxiety they bring various side effects such as sedation, addiction and memory loss. <\/p>\n

\n\tWhile BuSpar<\/span> is a non-benzodiazepine<\/span> alternative it needs be taken daily for 2-3 weeks before its anti-anxiety effect kicks in, while antidepressants also take some time to act and in some cases can cause liver toxicity.<\/p>\n

\n\tThis makes the trial results achieved by Bionomics<\/span> appealing, Bell Potter suggesting there should be interest from both investors and pharmaceutical companies. This is especially the case as there is evidence BNC210<\/span> works in treating depression as well as anxiety.<\/p>\n

\n\tWhile the trial results are early stage, Bell Potter notes Bionomics<\/span> is looking at two further Phase II trials, one on Generalised<\/span> Anxiety Disorder and one in Major Depressive Disorder, with required Phase III trials to follow.<\/p>\n

\n\tIt is the stockbroker's view the quality of the data received to date is likely to be enough for Bionomics<\/span> to find a partner for the BNC210<\/span> compound, which would help facilitate the necessary trials.<\/p>\n

\n\tBut the Bionomics<\/span> story doesn't end with BNC210<\/span>, as Bell Potter notes the company is also developing BNC105<\/span>, a Vascular Disrupting Agent that is designed to kill cancers by cutting off the blood supply to the tumour<\/span>. This kills the tumour<\/span> but leaves healthy blood vessels untouched.<\/p>\n

\n\tAt present BNC105<\/span> is being trialled<\/span> for the treatment of renal cell carcinoma and ovarian cancer, but Bell Potter suggests there is applicability across all solid tumours<\/span>. This makes BNC105<\/span> potentially more valuable than BNC210<\/span> longer-term given the size of the market for new cancer drugs.<\/p>\n

\n\tIn the stockbroker's view, Bionomics<\/span> can develop into a strong platform technology company through its Multicore<\/span>, ionX<\/span> and Angene<\/span> platforms. These have already yielded pipeline opportunities through the Kv1.3<\/span> program in Multiple Sclerosis and programs in Alzheimer's, cancer and epilepsy. This adds to the potential for Bionomics<\/span> to be attractive to an acquirer among big pharma<\/span> companies.<\/p>\n

\n\tOn a probability weighted discounted cash flow basis Bell Potter values Bionomics<\/span> at $1.40 using base case assumptions, rising to $2.50 under more optimistic assumptions. To be conservative the price target of $1.50 has been set at the lower end of this range. The stockbroker rates Bionomics<\/span> as a Speculative Buy.<\/p>\n

\n\tBionomics<\/span> has a market capitalisation<\/span> of a little more than $200 million at current levels, so the stock attracts little attention from other brokers, as the FNArena<\/span> database shows no coverage of the company. <\/p>\n

\n\t <\/p>\n

\n\tFind out why FNArena<\/span> subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"