[Click eStock] "Bridge Biotherapeutics, Loss of Stock Price Gain Due to Phase 2 Clinical Trial Delay"

Hana Financial Investment Report, Target Stock Price Down 25%

[Asia Economy Reporter Minji Lee] Hana Financial Investment forecasted on the 8th that Bridge Biotherapeutics (hereinafter Bridge Bio) is expected to see its performance fall significantly below expectations due to the delay in entering Phase 2 clinical trials of BBT-877, a treatment for idiopathic pulmonary fibrosis. Accordingly, the investment opinion to buy was maintained, but the target price was lowered by 25% to 57,000 KRW.

Bridge Bio's Phase 2 clinical trial entry for BBT-877, which was licensed to Boehringer Ingelheim last July for about 1.5 trillion KRW, has been delayed by approximately one year. This is because Boehringer Ingelheim informed that additional experiments are required for BBT-877.

Accordingly, the milestone payment expected to be received upon entering Phase 2 clinical trials in the third quarter of this year is also judged to be delayed by about one year. The guidance presented at the time of listing at the end of last year, which forecasted sales of 60 billion KRW and operating profit of 29 billion KRW this year, has been withdrawn.

Minjeong Seon, a researcher at Hana Financial Investment, said, "Contrary to market concerns, there were no issues in long-term toxicity tests in animals," and added, "Although delays in clinical schedules naturally raise concerns about technology return in the market, at this point, as long as there are no safety issues, the development will for BBT-877 is considered strong."

Considering that the patent for Ofev, Boehringer Ingelheim's idiopathic pulmonary fibrosis treatment which recorded sales of 1.75 billion USD last year, expires in 2024, the company is in a situation where it must find a new drug to replace Ofev, and BBT-877 is expected to be that candidate.

Along with BBT-877, BTB-401, which is being developed as a treatment for ulcerative colitis, has also seen its efficacy confirmation delayed until next year, leaving the company with insufficient short-term stock price catalysts. However, it is positive that the Phase 1 clinical trial of BBT-176, an EGFR C797S mutant non-small cell lung cancer treatment, will begin in the second half of this year targeting 90 patients.

Researcher Minjeong Seon forecasted, "The Phase 2a clinical trial of BBT-401, with increased dosage, may also start in the second half of this year," and added, "Although short-term momentum is lacking due to the delay in BBT-877's clinical trial, the medium- to long-term investment attractiveness remains high."

This content was produced with the assistance of AI translation services.