Biosergen - Clinical study in India as a springboard – Mangold Insight Analys

Biosergen has together with Indian Alkem initiated patient studies with its drug candidate BSG005 for fungal diseases. Alkem carries out the study that will last until the end of 2024. A result from the study is expected in early 2025. The clinical study is conducted in India and can lead the way for complementary studies intended for the US and the European market if successful.

Opportunities for a partnership licence deal is in reach if the current patient study is successful. There is competition, which we highlight in this analysis. However, previous studies have shown that BSG005 is a very strong and potent candidate to challenge existing and competing antifungal drugs. In this analysis we highlight studies within the field of antifungals.

Biosergen has carried out a rights issue this spring and also has the opportunity to raise additional capital in November in connection with a warrant programme. The capital is expected to be sufficient for Biosergen to prepare for future phase 2 studies. Mangold has updated the price target to SEK 2.10 (3.00) in a Base case mostly affected by an increased number of shares. This leads to an upside of over 280 percent. The trigger is positive news from the patient study. In a Bear case, the fair value is SEK 1.5 per share and in a Bull case SEK 2.8 per share.