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Biotech Analysis Central Preview Series: Provention Bio

Jan. 05, 2020 1:47 PM ETProvention Bio, Inc. (PRVB)1 Comment
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Long Only, Biotech, Healthcare, Short Only

Seeking Alpha Analyst Since 2011

I am the Founder of Biotech Analysis Central, A subscription service on Seeking Alpha's Marketplace. If you want to learn more about biotech investing or you want to check out my biotech analysis you can do so with a free 2-week trial to my service. Just hit the "Learn More" button on the bottom of the Marketplace Research Tab. I have a Bachelors of Applied Science Degree In Technology Management, Industrial and Business Services Management from St. Petersburg College Florida. I have been investing in biotech stocks for many years, and I prefer to invest as a long term investor. With that In mind I seek stocks that have long term value! I primarily Like to Invest In biotechnology stocks and I accept the risks. I Write for the Healthcare Sector and Stock market in general. I contribute to Seeking Alpha.

You can follow me on stocktwits.com under the name BiopharmaPro where I currently have (62.5K) followers. Join me in my quest to find the best biotechnology stocks that deliver results to help patients with new treatment options.

This is a preview blog series on what you can expect when subscribing to my "Biotech Analysis Central" service marketplace. For the full article you must subscribe to my service. This is just an intro of two snippets on the research articles that are written. Thus far, there are about 80+ research reports on both both small-cap and mid-cap biotech stocks with full analysis of the pipeline, catalysts, financials, and clinical trial analysis. If you want to read more then please subscribe to my marketplace service. As always I offer a 2-week free trial just to show you how helpful my service is. You can cancel anytime before the 2-week free trial is up and never be charged a dime.

First Section Of Marketplace Article (This article piece was originally written on December 27, 2019)

The next article I wanted to discuss for the "Biotech Analysis Central Stock Insight Series" is a biotech by the name of Provention Bio (PRVB). The reason why I'm going over this biotech next is because I believe it offers an attractive opportunity for investors, despite the recent climb in stock price. That's because it anticipates that will be able to initiate its rolling BLA submission to the FDA by mid-2020. From there, the rolling BLA submission for PRV-031 for the prevention of "At-Risk" patients with Type 1 Diabetes (T1D) will be completed by Q4 of 2020. What I believe this does is offer the initiation of the BLA which will likely cause the stock to trader higher and then subsequently, the BLA submission being completed. Both of these events are likely to raise the value of the biotech as it sets its eyes on obtaining approval for its first product PRV-031. What I like about this company is it that there are two tracks in the Type 1 diabetes space. This is the "At Risk" population highlighted above, which is ready for a BLA rolling submission filing soon, then there is another indication for early onset T1D patient population. This second one involves newly diagnosed T1D patients. The hope is that PRV-031 is able to preserve beta cell function and keep the patient from having to go through multiple insulin injections. The company has several other products in the pipeline that treat other types of diseases, which may also yield a lot of value in the coming years. Based on these prospects, I believe the stock price will start to climb in the coming months as investors anticipate the rolling BLA submission to start mid-2020.

Conclusion of Marketplace Article

The Final Verdict is that Provention Bio is a solid long-term Biotech. I see no reason for the moment why it won't obtain FDA approval for the use of PRV-031 for At-Risk T1D patients. Not only will it be good for the company, but it will be seen as a positive in changing the treatment landscape for T1D. Think about the results I noted above. Some patients went 7.5 years without advancing into T1D. What's the point of delaying? It is said that delaying T1D for many years, can potentially increase the life expectancy of said patient. How do I know this? There are statistics to back this up. It is said that for patients who are diagnosed with T1D before the age of 10, have a life expectancy shorter by 16 years. If PRV-031 can potentially delay the onset of T1D that would be monumental. With the T1D market to be worth $25.52 billion by 2025, that is a large market for many players in this space. However, Provention Bio won't be challenged for the At-Risk population. Where it will be challenged is the "Newly diagnosed" population. In other words, it has to prove that PRV-031 can help these newly diagnosed patients in a superior fashion over insulin and other non-insulin products. You see how extensive the pipeline is with different kinds of monoclonal antibodies being used. Another solid opportunity, which I believe the biotech has good potential is for lupus. If it can get the drug PRV-3279 to advance in the clinic through the next set of trials, I believe that is another product that could add great value. I noted Aurinia Pharmaceuticals, which has limited competition in lupus nephritis (lupus of the kidneys), but Provention is going after the entire lupus market. With limited competition here as well, I think the company holds so much potential in value. The last item I like to note is how cheaply valued the biotech is. Despite the progress it made in close to filing its rolling BLA submission for At-Risk patients, plus other pipeline progress, its market cap only stands at $698 million. That is pretty cheap, considering the market opportunities that exist with PRV-031, PRV-3279 and PRV-015.

Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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