Roth Capital Reinstates Buy On BioLineRx, Sees 267% Upside


In a report released this morning, Roth Capital analyst Joseph Pantginis reinitiated coverage on BioLineRx Ltd. (BLRX) with a Buy rating and an $8.00 price target, which represents a potential upside of 267% from where the stock is currently trading.

The following bullets contain some highlights from that call:

  • Due to the company’s close ties with academic institutions and biotechnology companies, particularly in Israel, we believe BioLineRx has the ability to maintain a strong pipeline over the long term. We believe the company’s formal Early Development Program (EDP) will continue to assist in the identification of high quality assets at an early stage, and therefore allow the company to acquire the assets on terms that are favorable to BLRX.
  • By seeking to partner following Phase II proof-of-concept data or earlier, we believe BioLineRx reduces financial risk by partnering drugs before expensive Phase III trials. Due to this business model, we believe BioLine should be able to maintain a relatively low burn with respect to the number of clinical candidates in its pipeline. We believe BioLine’s past partnerships have demonstrated that the company is able to garner attractive partnering terms on assets which have been developed according to this model.
  • In our opinion, BioLineRx has already started to check off an important box with regard to validation by having two signed partnerships. BLRX out-licensed BL-1040 to Bellerophon in July 2009 and BL-8030 to leading Chinese pharmaceutical company Jiangsu Chia-tai Tianqing Pharmaceutical Co., Ltd. Bellerophon agreed to pay a total of $285 million to license BL-1040, including an upfront payment and remainder when drug was successfully approved. BioLine is entitled to 11-15% of yearly sales revenue and also maintained the right to product BL-1040 in Israel and remain one of Ikaria’s suppliers. The Jiangsu Chia-tai Tianqing deal value is ~$30 million, including an upfront payment to BLRX and future development, regulatory, and commercialization milestones. BioLineRx is also entitled to high single-digit royalties on future sales.

In conclusion, “With six clinical assets, two validating partnerships already in hand, and abundant near-term catalysts, we believe BioLineRx is poised for share appreciation going forward”, wrote Pantginis.

According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Joseph Pantginis currently has an average return of -5.3% and a 38% success rate. Pantginis is ranked #3068 out of 3154 analysts.

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