The company is developing monoclonal antibodies directed against bacteria and viruses.
The key R&D program is ASN100, which is directed against 6 cytotoxins critical to Staphylococcus Aureus pathogenesis.
An independent data review committee will conduct an interim analysis in the first half of 2018 to assess the success probability of the trial as designed (a near-term catalyst).
We are initiating coverage on Arsanis stock with a Buy rating and a price target of $35.
We like recent IPO Arsanis Pharmaceuticals (ASNS), especially given its near-term catalysts in 2018. In this article, we will provide our investment rationale for this company.
Encouraging initial data in Staph. Aureus pneumonia prevention and near-term catalysts
The initial data for ASN100 so far has been encouraging. It was well-tolerated in a Phase I trial with no serious toxicities. The Phase II trial is planned to be designed for superiority (rather than non-inferiority) vs. placebo. An independent data review committee will conduct an interim analysis in the first half of 2018 to assess the success probability of the trial as designed (analysis in one-third of the 354 planned enrollment). Safety and efficacy data from this Phase II trial is expected in the second half of 2018. The management expects that a single preventive dose will be enough to neutralize the SA cytotoxins. The patents extend until 2033.
Potential competition to ASN100 includes Medimmune’s MEDI4893, which targets only cytotoxin HIA (in Phase II); XBiotech’s 514G3, which targets S.Aureus surface protein A (in Phase II); and Genentech’s RG7861 SA targeting monoclonal antibody attached to an antibiotic (in Phase I). We still like ASN100, which targets all six cytotoxins of SA and could have better efficacy.