- We like the risk-reward of Provention Bio at this point and upgrading the rating to strong-buy from a buy. We accumulated a small option-sized position last week to play.
- The company announced its intention to re-submit the BLA for Teplizumab targeting type 1 diabetes in at-risk individuals.
- Approval of Teplizumab would represent a peak sales of USD 800-1.2B, and we view the probability of success to be around 80% at this point.
- Based on our valuation, the company is ~80% undervalued from its risk-adjusted valuation, and even after the recent 50% rally, there is more room to rally.
For further details see:
Provention Bio: Upgrading To A Strong-Buy, Potential Cure For Type 1 Diabetes