Aegis Ponders Neurotrope's Odds Of Pulling The 'Alzheimer's Sword From The Stone'

Neurotrope Inc NTRP is in the process of developing Bryostatin-1 “as a stimulator of PKCε, an early regulator of brain cell growth and repair. A Phase IIb trial has completed enrollment in Alzheimer’s disease, with data expected in late April 2017,” Aegis Capital’s Robert LeBoyer said in a note.

The analyst initiated coverage of the company with a Buy rating and $31 price target.

Promising Potential

LeBoyer explained that Bryotstatin-1 stimulates PKCε, which is a protein involved in the formation of new memories.

Research has shown this protein acts as an early "regulatory control," stimulating synaptic growth as well as other neuronal pathways in the brain.

The analyst believes the mechanism of action of Bryostatin-1 could address several important pathologies of Alzheimer’s disease.

“The primary endpoint in trial is the change in Severe Impairment Battery (SIB), a clinical tool evaluating several cognitive functions. Safety and efficacy are also endpoints. Each of the secondary endpoints evaluates specific effects of Bryostatin-1,” LeBoyer mentioned.

See Also: Taking A Clinical Road Less Traveled: Neurotrope Hopes To Succeed In Alzheimer's Where Competitors Fail

Data Will Drive Stock

Currently, the only treatments available for Alzheimer's are drugs that work to lessen symptoms but have little or no impact on disease progression.

In addition, multiple clinical trials in Alzheimer's have failed, which makes it a high risk indication for drug development.

Therefore, if the Phase IIb trial for Bryostatin-1 is successful, it could become the first “disease-modifying therapy” that prevent progression of Alzheimers and restores lost memory.

“If the Phase IIb trial is partially successful (meets some but not all of its endpoints) we believe it could still have therapeutic value in AD (Alzheimer’s Disease) and other neurological diseases where cognitive function or development is affected,” the analyst stated.

LeBoyer expects Neurotrope shares to be driven by the results of the Phase IIb trial, data from which is expected to be reported in late April.