Neurotrope Alzheimer's Candidate Could Generate Revenue Beginning In 2024, Analyst Says

Alzheimer's drug research has a high failure rate, and symptoms of the disease start appearing long after amyloid plaques — which are responsible for interruption of cell-to-cell signal transfer — deposit on the brain.

The Analyst

Roth Capital Partners analyst Robert LeBoyer initiated coverage of Neurotrope Inc NTRP, which is developing Bryostatin 1 to treat Alzheimer's, with a Buy rating and a $15 price target.

The Thesis

Unlike therapies that slow the progression of Alzheimer's, Neurotrope's Bryostatin-1 functions by improving the memory loss caused by the disease, LeBoyer said in a Thursday note.

The biotech company reported Phase 2 data in April 2017 that supported Bryostatin-1's mechanism of action and supplied additional information for further development and clinical use.

"While the trial provided proof-of-concept and justifies moving forward, the next trial is expected to have a larger number of patients and longer treatment period," LeBoyer said. 

The new study, expected to begin in mid-to-late 2018, could be used to form a pivotal trial for FDA approval, the analyst said. 

Bryostatin-1 is also being considered for Fragile-X syndrome, with clinical trials likely to begin in 2018. Bryostatin-1 has been tested for memory loss due to ischemic stroke and traumatic brain injury, according to Roth Capital. 

"Our valuation is based on conducting a Phase 2, a confirmatory Phase 3 and then approval of Bryostatin-1 in late 2023, with first revenues in fiscal 2024." 

The Price Action

Neurotrope shares are down 55 percent over the past year.

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