New strategy including more US exposure - HOLD - TP 7,4€ (vs 9,1€)

In its 2015 annual report, Biophytis unveils a new strategy including 2 major aspects : 1) recruitment of phase 2b patients will be more focused, on healthy volunteers aged 65+ for its sarcopenic obesity product (Sarconeos) and, for its dry AMD drug Macuneos, on patients showing signs of geographic atrophy ; 2) clinical trials for both products will be extended to the US, incl. 120 patients/trial, on top of the 180 pts already planned in Europe. This strategic move is of major importance : significant increase in the size of both Phase 2b clinical programs, by including patients in investigation centers in the US, world largest market, is intended to increase the statistical power of the studies conducted and, as a result, generate more value for the company. All this should lengthen the preparation phase of the SARA (Sarconeos) and MACA (Macuneos) studies and delay the start of the phases 2b investigation by 12 to 18 months. Cash, which we estimate at €7m to date, ie one year (cash burn of €0,6m/month), will be insufficient. We adjust our model to take into account the one year delay for phase 2b clinical trials and more importantly for the 2 upfronts, now expected in 2018 instead of 2017 for Sarconeos and in 2019 for Macuneos. As a consequence, we lower our target price from €9.1 to €7.4€/share. HOLD rating reiterated.