Making p38 MAP kinase inhibition viable

The inhibition of the validated drug target p38 MAP kinase has been shown by many big pharmaceutical companies to result in significant anti-inflammatory activity. Unfortunately, these effects were short-lived and not a basis for a viable drug alone.

That is, until the founders of Kinarus discovered and patented the use of a p38 MAP kinase in combination with another, already-approved, generic drug that does make the mechanism viable. KIN001 is that drug, with pamapimod licensed from Roche Holding AG who retain opt-in rights.

Kinarus' licensing strategy has resulted in them becoming a mid-stage clinical development company without the cost and time implications of drug discovery and toxicology programs. This is because Roche (Kinarus’s licensor) conducted those, and other studies.

We initiate coverage today. The largest component of our valuation is a risk-adjusted NPV analysis of Kinarus’ product KIN001 in wAMD, but it also includes contributions from its potential use in COVID-19 and, further out in the timeline, idiopathic pulmonary fibrosis.

Our fair value of Kinarus AG is CHF107.6m, or CHF0.10 per share.