3 reasons to add Motif Bio #MTFB to your watchlist

Back

3 reasons to add Motif Bio #MTFB to your watchlist

The content of this podcast (or content associated with it) is not intended as investment advice and people featured may hold positions in the companies they talk about. Please do you own research.

Share Price: 23p
Market Cap: £45m
Shares in Issue: 195m

Motif Bio (MTFB) is a clinical stage biopharmaceutical company which specializes in developing novel antibiotics designed to be effective against serious and life-threatening infections caused by multi-drug resistant bacteria.

In simple terms, anti biotics are becoming less effective against multi-drug resistance bacteria and Motif’s lead drug, Iclaprim, is hoping to address this issue. If it succeeds, it will be hugely commercial. In a recent podcast Graham Lumsden the CEO reckons revenue could be around several hundred million dollars a year.

The chief medical officer for England Prof Dame Sally Davies, on the anti biotic issue, has likened it to an, “apocalypse”. If a drug to combat multi-drug resistant bacteria isn’t found a simple cut to your finger could leave you fighting for your life.

Iclaprim, Motif’s lead drug, is now in Phase III clinical trials.

This is an update on Motif Bio, to read my previous blog click here

3 reasons to add Motif Bio #MTFB to your watchlist


At 23p, Motif Bio’s share price is at near all time low. The lowest it’s been, was on the 1st December 2016, where it hit 21.44p. This should provide some support.

The reasons why the share price is so low, is due to the issues surrounding their NASDAQ listing and funding for their phase 3 trials. These issues are now behind them, they’re listed on the NASDAQ (and AIM) and have raised $25m gross to complete Revive-1 of their phase III trials.


(click to enlarge a chart of their share price).

 


Motif Bio are in now in phase 3, the final phase of their clinical trials.

This trial is split into 2 parts, Revive-1 and Revive-2. The first set of results from the Revive-1 trial will be released in Q2 of this year. If these are positive the share price should start to head north, at a rapid pace.

The data from Revive-2 will be released later this year.

 

Motif Bio have 2 peers, also listed on the NASDAQ, who in terms of clincal trials, are just ahead of them:

Paratek Pharmaceuticals (PRTK) who will also be reporting top-line data from the phase III trials during the second quarter of 2017, currently have a market capitalisation of $350m.


Achaogen (AKAO) who’s current market capitalisation is $677m, announced positive data read out on it’s phase III trail in December 2016.

Motif Bio’s market capitalisation is currently £45m.

 

Motif Bio have the cash to complete the first part one of their phase III trials for their lead drug Iclaprim, which is looking to combat multi-drug resistant bacteria, a recognised global risk.

Their share price is at an all time low, just before key news will be released on it’s effectiveness. Combine this with the fact that their peers, who are not only valued at multiples to Motif Bio but have rallied strongly on approach to similar milestones and I believe MTFB is definitely one to put on your watchlist.

The content of this podcast (or content associated with it) is not intended as investment advice and people featured may hold positions in the companies they talk about. Please do you own research.

my-previous-blog-posts
To subscribe to my blog click here

7 Stocks to Watch in 2017

 

Our, “£1,000 to £100,000 in 50 Trades of Less” Experiment

angs-small
To read my blog post on Angus Energy #ANGS click here

 

ars-small
To read my blog post on Asiamet Resources #ARS click here

 

boom-small
To read my blog post on #audioBoom #BOOM click here
To read my updated blog on audioBoom including the iHeartMedia agreement click here

 

evr-holdings-logo-small
To read my blog post on EVR Holdings #EVRH click here
To read my follow up article on #EVR Holdings click here

 

To read my blog on Horizonte Minerals click here

 

koov-small
To read my blog post on Koovs #KOOV click here

 

pvr-small
To read my blog post on Providence Resources #PVR click here

 

tlou-small
To read my blog post on #TLOU Energy click here

 

upl-small
To read my blog post on Upland Resources #UPL click here
To read my follow up article on Upland Resources: The Sensible and Sexy Asset Strategy, click here

 

yolo-small
To read my blog post on Yolo Leisure and Technology #YOLO click here
To read my blog post on Yolo’s Electric Jukebox Investment click here

Vox App Image
How to get company RNS releases sent straight to the front screen of your smartphone, as soon as they release them (for free) in 3 easy steps.

1. Download the Vox Markets app by clicking here (for either iPhone or Android).
2. Search for a company you want to receive the RNS’s from.
3. Click, “Follow” on that company’s page.

If you find this podcast useful please could you give it a 5 star rating and review on iTunes by clicking here and I’ll return the favour by giving you a mention on the podcast!

The content of this podcast (or content associated with it) is not intended as investment advice and people featured may hold positions in the companies they talk about. Please do you own research.