Biosergen - Reduced risk after positive phase 1-studies - Mangold Insight Analys

Biosergen. that develops a drug for the treatment of invasive fungal diseases, has successfully completed phase 1 studies in March. Its drug candidate BSG005 has proved to have a satisfactory safety profile, which means that the company now can proceed to phase 2 studies. BSG005 is a strong contender for Amphotericin B that is associated with serious side effects leading to early treatment withdrawal. BSG005 is to become the first drug of choice and to be used before a diagnosis is established.
 

Biosergen intends to conduct a phase 2a study to demonstrate the potential that BSG005 possesses. The study includes testing cases with different fungi strains in invasive fungal disease in patients. The study will take around six months, starting in the second quarter of 2023. The aim is to show that BSG005 can be used for treatment in patients who have to be taken off Amphotericin B treatment due to the side effects. Biosergen will after the Phase 2a study proceed to a larger registration based Phase 2b study in indications previously announced.

Mangold initiated coverage of Biosergen i January 2023. Since then, Biosergen has completed phase 1 studies with a positive outcome and intends to launch a Phase 2a study for which it has funding. Success with this should raise the value of the company considerably and attract pharmaceutical companies that looks for replacements. The fair value for the stock has theirfore increased. Mangold set the price target to SEK 3.50.