Paradigm starts Tetra Bio-Pharma at buy; PT $1.75


Paradigm Capital initiated coverage of Tetra Bio-Pharma (TSXV:TBP) with a “buy” rating and price target of $1.75. The stock closed at 75 cents on August 10.

The company is engaged in multiple Health Canada-approved clinical trials, evaluating its portfolio of cannabis-based drugs - from defined smokable pellets to sustained release mucoadhesive tablets to oil-based capsules to eye drops to topical creams - primarily in indications such as chronic pain and cancer pain, but also neuropathic pain, fibromyalgia, eye pain and inflammation, and chemotherapy-induced nausea and vomiting. 

“Tetra has translated its clinical aspirations into rapidly advancing realities, with some of its proprietary agents already engaged in late-phase Phase 2, 3, and 4 clinical trials, underscoring its field-leading research momentum and deep knowledge of Health Canada’s regulatory apparatus: key value drivers in the biopharmaceutical and clinical cannabis arena,” writes analyst Rahul Sarugaser. 

He has derived the value of Tetra Bio-Pharma by summing the risk-adjust net present values of each of its ongoing clinical programs. These include a Phase 3 clinical program, evaluating the treatment of terminal cancer pain with PPP001; a Phase 4 clinical program, evaluating the treatment of chronic pain with PPP005; and a Phase 2 clinical program, evaluating the treatment of breakthrough cancer pain with PPP001. 

Stephen Kilmer