Kindred Biosciences Is 'Setting The Pace In Animal Health Biologics'

Ladenburg Thalmann’s Kevin DeGeeter believes Kindred Biosciences Inc KIN has an attractive growth opportunity in biologic therapies for the treatment of companion animals.

DeGeeter initiated coverage of the company with a Buy rating and price target of $7.50.

Setting The Pace

“We view KIN as an emerging leader in development of new biologic therapies for companion animals with two potential product launches in 2017,” the analyst mentioned.

DeGeeter expects the company to see growth opportunities, driven by its potential for higher efficiency, compared to existing therapies, convenience of dosing, potential for premium pricing, compelling specialty commercial model and opportunities to monetize its platform via global partnerships.

In addition, the analyst believes “KIN is positioned to complete three important milestones before requiring additional financial resources including: 1) launch of Zimeta in mid 2017, 2) successful completion of pilot study for epoCat (feline EPO) by 1H17, and 3) potential launch of epoCat in 1H19.”

Expectations

DeGeeter estimated that Kindred Biosciences’ equine franchise, including Zimeta, had the potential to reach $36.8 million in revenues by 2020, while epoCat could achieve sales of $12.7 million in the same time frame.

The company received approval of “effectiveness technical section” for Zimeta from the FDA.

If the FDA review approval process is rapid, Kindred Biosciences expects to receive approval for the drug application in H1 2017.

“We expect KIN to compete primarily on product consistency and eventually on breadth of product offering,” DeGeeter stated.