The recent news flow on Kinarus’ lead product KIN001 has bolstered its profile for the treatment of ambulatory COVID-19 patients. In addition, the outlook for the main events for KIN001 – the anti-inflammatory and anti-fibrotic indications – on which most of our valuation is based, have also been boosted by a new US patent allowance.
Some investors may wonder why the KINFAST Phase 2 study in mild to moderate ambulatory COVID-19 patients is continuing. There is a good reason, as other approved agents to treat COVID-19 also aimed high, failed in hospitalised patients, but have shown efficacy in earlier-stage COVID-19.
The rationale for the continuation of KINFAST is therefore solid and has been further bolstered by the recent demonstration of KIN001’s strong preclinical antiviral activity against the currently circulating SARS-CoV-2 Omicron subvariants BA.2 and BA.5.
In our recent initiation we led with wet age-related macular degeneration (wAMD) and idiopathic pulmonary fibrosis (IPF) as the main indications for KIN001, which now comprise 91% of our valuation. Kinarus’s recent notice of allowance for its US patent on KIN001 in ophthalmic diseases will help ring-fence their intellectual property in those indications.
Our fair valuation of Kinarus remains at CHF96.0m, or CHF0.09 per share.
