Report

Opportunities to overcome antibiotic resistance

Motif Bio PLC (MTFB) is a drug discovery and development company targeting new antibiotic solutions. Modern medicine is under threat from antibiotic resistance, particularly for hospital-acquired infections (HAI). MTFB has an opportunity to help strengthen the physician's toolbox for antibiotic-resistant bacteria. MTFB recently raised £2.8m listing on AIM to support steps towards a Phase 3 programme of its recently acquired novel antibiotic, iclaprim, in two significant HAI indication areas. These could be worth up to $1bn in worldwide revenues, and highly attractive to Big Pharma acquirers. Indeed, Motif has just been selected to present at the 2015 BIO International Convention, the world's largest biotech meeting. The outcome of a recent meeting with the US FDA (on 14 April) confirmed that iclaprim is ready for the clinic. Motif is exploring additional sources of funding to support this programme to completion - including non-dilutive awards and grants, and corporate partnering. There is a healthcare crisis imminent through lack of new antibiotics, so MTFB should enjoy worldwide government and regulatory support to help commercialise iclaprim (and other product candidates), benefit from a fast-track approval process and a potential 10 years of market exclusivity. A successful partnering strategy and commercialisation outcome suggests forecasts that support a valuation in the range of £45m-£60m. Positive Phase 3 results should be a multiplier for this figure, with potential M&A activity adding a further premium.
Underlying
Motif Bio

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.

Provider
Equity Development
Equity Development

​Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.

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