|Pluristem's valuation discrepancy hard to ignore given move into Phase II/III|
|By Ray Dirks|
|Tuesday, 25 January 2011 08:59|
At the time of the January 3rd note, PSTI had completed two Phase I/IIa trials in the US and Germany using their PLX-PAD cell product in peripheral artery disease (PAD) while MSB was entering Phase III trials for the use of their cells as an alternative to bone marrow transplantation in hematological malignancies and in Phase II trials for orthopedic and cardiovascular indications.
On January 18, 2011 PSTI announced the successful completion of a parallel scientific advisory process with the European Medical Agencies (EMA) and the U.S. Food and Drug Administration (FDA) regarding the Company’s planned clinical development program for PLX-PAD. Based on the positive feedback from the EMA and FDA, Pluristem is now advancing towards two clinical studies with PLX-PAD: a joint FDA-EMA Phase II/III study for critical limb ischemia (CLI) and a Phase II study for intermittent claudication (IC), both diseases being subsets of PAD.
From my viewpoint, both PSTI and MSB now have products entering Phase III pivotal trials. However, the discrepancy in valuation between the two companies is still quite large. PSTI and MSB currently have market values of approximately $70 million and $900 million respectively. MSB, therefore, is almost 12.5 times larger than PSTI. Although MSB does have the collaboration in place with CEPH, I believe it is just a matter of time before PSTI also has one or more collaborations in place. Therefore, I am recommending investors take advantage of this valuation discrepancy before it ceases to exist.
Disclosure: No Positions