Proteostasis Therapeutics (PTI) Sparks Optimism Among Investors; Here’s Why

Proteostasis Therapeutics (PTI) announced today a worldwide, exclusive license agreement with Genentech for the rights to a potential new therapy, without revealing what exactly the medication will achieve. The company is known for its advances in treating cystic fibrosis and other diseases caused by dysfunctional protein processing.

“We are thrilled to enter into this agreement with Genentech, an industry leader with a proven record of success in small molecule research and development,” said Meenu Chhabra, President and CEO of Proteostasis Therapeutics. “PTI’s platform revolves around the modulation of protein homeostasis pathways within the cell, either restoring its normal state or enhancing its capacity to control or delay the progression of disease.  We look forward to working with Genentech to leverage discoveries from this platform to potentially address unmet medical needs.”

Cantor analyst Elemer Piros weighs with his thoughts as well: “Given the number of indications that are caused by loss-of-function, leading to inefficient folding/excessive degradation, we believe this collaboration could open the door for future licensing agreements. Proteostasis has also demonstrated early proof of concept for this technology in cystic fibrosis. According to the 8-K filing, the specific upfront payment has not been disclosed, as it is “subject to certain conditions being met in the case of the upfront payment,” the analyst explains.

Piros’ positive view of what PTI could achieve with this partnership leads him to reiterate an Overweight rating with a price target of $21, which shows a potential upside for the stock of nearly 311%. (To watch Piros’s track record, click here)

Analysts across the board are supportive of this biotech stock, and TipRanks analytics show out of all four analysts who have kept an eye on the stock in the last three months, every one is bullish. The consensus price target of $14.75 shows a potential upside of 193% from where the stock is currently trading. (See PTI’s price targets and analyst ratings on TipRanks)


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