Roth starts Poxel SA at buy

Roth Capital Partners initiated coverage of Poxel SA (NXT:PA) with a “buy” rating and price target of €11. The stock was recently quoted at €5.14.

Poxel’s Imeglimin has demonstrated promising efficacy for the treatment of diabetes in multiple Phase 2 studies, both as monotherapy, as well as in combination therapy.

The company is conducting a 300-patient Phase 2b in Japan, and “we expect positive data in mid-2Q17,” writes analyst Sa’ar Yaniv. In addition, “we expect that following the positive data, Poxel will partner this wholly owned asset,” he added.

Mr. Yaniv said Imeglimin is a first-in-class glimin that increases insulin secretion and sensitivity, while simultaneously decreasing glucose production. In multiple Phase 1 and Phase 2 studies, the drug has demonstrated efficacy in controlling blood glucose in diabetic patients.

“We expect a number of events over the coming 12 months to drive investor interest in POXEL, including the aforementioned Phase 2b data (mid-2Q17), potential partnerships (2017/2018), and data from PXL770, the company's next-in-line compound for the treatment of diabetes/metabolic diseases (2H17),” he added.