Recommendation: We retain our BUY rating, but based on the premise of reduced clinical trial management risk, we are increasing our 12-month price target to $1.00 per share.
Event: On the 21st of January, 2014, US time, the ClinicalTrials.gov listing for Benitec’s first in man clinical trial of its developmental hepatitis C therapeutic was updated to show that one of the two sites for the trial (Duke) is now recruiting patients. The entry is listed under the name of Benitec’s subsidiary company, Tacere Therapeutics, and can be found at:
Comment: The listing of the trial site at Duke as open for recruitment occurred quicker than we believed it would and indicates Benitec is well and truly on top of management of the trial.
Event Impact: While largely process, this event is important, given it is the first time the company has entered the clinic. It is also, by far, the strongest piece of evidence to date to indicate that all of the processes required to commence the clinical trial have been successfully completed (particularly, those beyond the Investigational New Drug application). Consequently, we have raised our 12-month price target by 10 cents per share. The next milestone we will be looking for is dosing of the first patient.
- RS
BLT Price at posting:
83.0¢ Sentiment: Hold Disclosure: Held
