For Toronto-based analysts Doug Cooper and Margaux Berry of Beacon Securities, Revive Therapeutics Ltd. (RVV–TSX/VEN) needs no resuscitation. Not only are they keeping it pegged at “buy,” but they’re sticking with their 12-month price target of $2 a share.
Headquartered in Vaughan, Ont., just north of Toronto, Revive buys, develops and commercializes treatments for post-operative pain, as well as for rare diseases.
Analysts Cooper and Berry write: “Revive recently named Dr. Robert Terkeltaub as principal investigator for its upcoming phase two clinical trials for gout.
Not only is Dr. Terkeltaub a professor of medicine at the University of California, San Diego, he’s also a world-renowned gout expert with over 30 years of experience. In addition, he has many publications to his credit.
Based on studies published in 2011, his research has identified two crucial findings:
(1) Patients with gout typically have multiple other chronic conditions including hypertension, diabetes and chronic kidney disease;
(2) Existing gout treatments often have contra indications to these conditions, which can make the complications worse.
Contrary to existing treatments, Revive’s studies on Bucillamine, its gout drug, showed that it doesn’t adversely affect the other chronic conditions. The studies also showed that Bucillamine treats flares, as well as uric acid levels.
Not only do we believe Dr. Terkeltaub’s participation adds extra credibility, but we think it supports our thesis that Revive’s repurposing of Bucillamine could attract significant interest from the drug industry should it successfully complete its phase two results.
More than eight million Americans now suffer from gout; worldwide, the figure is 14 million. And the numbers are expected to rise as the population ages.
In the meantime, experts predict that between 2013 and 2018, treatments for gout, now a multi-billion dollar business, will increase at a compound annual growth rate of 18 per cent.
Perhaps that’s why AstraZeneca PLC (AZN–NYSE), the U.K.-based drug giant, shelled out US$1.3 billion in 2012 for Ardea Biosciences, even though the latter’s gout treatment hadn’t yet advanced beyond phase two trials.”
Investor’s Digest of Canada, MPL Communications Inc.
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