Approval signals clear GAIN for Motif
​Motif Bio is a clinical stage biopharma company specialising in developing novel antibiotics to combat life-threatening diseases caused by multi-drug resistant bacteria. Recent QIDP status for iclaprim in both serious skin and bacterial pneumonia indication is very significant, meaning that it benefits from a fast-track approval process and receives an extra 5 years of marketing exclusivity in the US (from the date of approval - H1'18 forecast) under Hatch-Waxman legislation (making a total of 10 years). Motif next aims to initiate Phase 3 trials for iclaprim in 2015. FDA confirmed in April that two successful serious skin infection trials or one skin (ABSSSI) and one pneumonia (HABP) trial would be required for iclaprim's US approval. We raise our fair valuation range for this rapidly maturing company to £95m-£125m, through greater probability of product approval and launch (now 64% versus 50%) and a higher implied royalty rate (15% versus 12%) on our licensing model. That current valuation mid point equates to 102p per share compared to the current 65p level. However, we would also remind investors that positive Phase 3 results should imply a multiplier for this figure, with potential M&A activity adding a further premium.
Motif Bio is a clinical stage biopharmaceutical company based in the United Kingdom. Co. specializes in the development of novel antibiotics designed to be effective against serious and life-threatening infections caused by multi-drug resistant bacteria. Co.'s predominant product Iclaprim is being developed for the treatment of the most common and serious bacterial infections such as acute bacterial skin and skin structure infections and hospital acquired bacterial pneumonia (HABP). Co. is also engaged in discussions with pharmaceutical companies and universities to build a pipeline of innovative antibiotics targeting Gram positive and Gram negative bacteria.
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