KGI initiates coverage on iX Biopharma with ‘Outperform’ and target price of $1.17
Chen Guangzhi and Alyssa Tee of KGI Securities have initiated coverage on specialty pharmaceutical company iX Biopharma (SGX:42C) with an “Outperform” recommendation.
“A US emergency declaration published on Sept 3 allows FDA to consider drugs for moderate-to-severe acute pain in military casualties. iX Biopharma expects to complete its Wafermine EUA submission by 4Q2026,” both Chen and Tee say.
Once iX Biopharma managed to secure the EUA, Wafermine could be supplied to US military personnel from next year onwards, well before full FDA approval.
Back in Feb this year, iX Biopharma received a sole-source US$40.95 million ($52.4 million) Department of War (DoW) award to fund Wafermine's EUA work and Phase 3 programme.
Sole-source awards are made when the US Government determines that only one supplier can meet its requirement.
“The funding lets iX Biopharma keep full ownership of Wafermine through Phase 3 and approach partners with late-stage data, which should command better licensing terms,” the KGI team predicts.
Apart from DoW’s support, Wafermine is also backed by policy support for non-opioid pain treatment.