JP Morgan: BioLineRx Will Outperform, Is Worth $5/Share On 'Promising Technology'

In a report published Monday, JPMorgan analysts initiated coverage of

with an Outperform rating and $5 price target. "BioLine RX is advancing an arsenal of products in development with the hope of delivering important new therapies to treat a wide variety of diseases," the analysts stated, while adding, "[W]e believe investors are undervaluing the pipeline potential of BLRX, considering that four of its six clinical assets are in Phase II trials or have efficacy validity data, with estimated worldwide sales potential of over $3.7bn." The company's strategy is to rapidly build value for its early stage pre-clinical assets "in a capital efficient manner," and then move them forward to clinically derisking the technology. This would help BioLine RX to attract a pharma partner, who would invest in the later-stage development and commercialization of its products. "BLRX is currently at a stage where the components of this strategy are in place, with potential for exponential growth," the JP Morgan report added.