Goldman Small Cap Research Publishes New Research Report on First Wave BioPharma, Inc.

Rhea-AI Summary

BALTIMORE, MD / ACCESSWIRE / March 31, 2022 / Goldman Small Cap Research has released a new report on First Wave BioPharma (NASDAQ:FWBI), highlighting its clinical-stage pipeline targeting gastrointestinal diseases. The report suggests FWBI could generate royalties by late 2022, with projected revenue of $50 million in 2023 at a 22% operating margin. The therapeutic pipeline, which includes promising Phase 2 trials for COVID-19 GI infections, offers significant revenue potential. Analyst Rob Goldman expressed optimism about upcoming milestones and licensing partnerships from Big Pharma.

Positive

• Projected royalties of $50 million in 2023.
• Potential operating margin of 22%.
• Multiple Phase 2 clinical programs with significant revenue potential.
• Optimism about favorable Phase 2 trial results in 1H22.

Negative

• None.

BALTIMORE, MD / ACCESSWIRE / March 31, 2022 / Goldman Small Cap Research, a stock market research firm specializing in the small cap and microcap sectors, announced today that it has published a new research report on First Wave BioPharma, Inc. (NASDAQ:FWBI), a clinical-stage biopharmaceutical company specializing in the development of targeted, non-systemic therapies for gastrointestinal (GI) diseases. The report carries a price target. To view the new research report, along with disclosures and disclaimers, or to download it in its entirety, please visit https://bit.ly/3iPQ2jK.

First Wave BioPharma, Inc. The Company is currently advancing a therapeutic development pipeline with multiple clinical stage programs and indications representing billions in potential revenue. This pipeline is built around its two proprietary technologies - niclosamide, an oral small molecule with anti-viral and anti-inflammatory properties, and the biologic adrulipase, a recombinant lipase enzyme designed to enable the digestion of fats and other nutrients. The portfolio is led by clinical programs in Phase 2 clinical trials, including for COVID-19 gastrointestinal infections.

In the Opportunity Research report, analyst Rob Goldman reviews FWBI's therapeutic pipeline, monetization/royalty model, and upcoming milestones, which could begin to occur in 2Q22.

Catalysts Abound for FWBI

Goldman commented, "Driven by upcoming milestones, we believe FWBI is set to enjoy a rise in its share price. FWBI is slated to publish top-line clinical results for its Phase 2 COVID-19 GI trial in 1H22. We believe results will be favorable and attract a licensing partner in the form of Big Pharma, leading to potential first royalties later this year, and major royalty revenue in 2023."

Diverse Pipeline, Favorable Monetization Model

"The Company boasts 2 key assets, 6 indications, and 4 Phase 2 clinical programs, along with a novel, proprietary micronized formulation. Management has a history of exits and successful product development. We believe FWBI will enjoy similar success," noted Goldman. "Management's strategy is to acquire assets for development and out-licensing that represent multi-billion-dollar indications and unmet needs. A core tenet is improving outcomes and quality of life such as producing oral formulations versus other, painfully administered drugs. FWBI has a series of trials slated to commence or be prepared for top-line results in 2H22 and through 2023. These include multi-billion-dollar IBD-related trials and other GI indications."

Key Forecasts

"We project FWBI could generate royalties at the tail end of 2022 including $50 million in 2023, whereby it may achieve a 22% operating margin. Our price target reflects the Net Present Value of a multiple on FWBI's future operating income, discounted back by 15% per annum. Our target is a modest premium to FWBI's 52-week high," noted Goldman.

About Goldman Small Cap Research: Founded in 2009 by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces sponsored and non-sponsored small cap and microcap stock research reports, articles, stock market blogs, and popular investment newsletters.

Goldman Small Cap Research is not in any way affiliated with Goldman Sachs & Co.

This press release contains excerpts of our most recently published company update on First Wave BioPharma, Inc. ("The Company"). The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research relied solely upon information derived from First Wave BioPharma, Inc. The information includes authorized press releases or legal disclosures made in their filings with the U.S. Securities and Exchange Commission http://www.sec.gov.

Separate from the factual content of our update about the Company, we may from time to time include our own opinions about the Company, its business, markets, and opportunities. Any opinions we may offer about the Company are solely our own, and are made in reliance upon our rights under the First Amendment to the U.S. Constitution, and are provided solely for the general opinionated discussion of our readers. Our opinions should not be considered to be complete, precise, accurate, or current investment advice. Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results.

A Goldman Small Cap Research report, update, newsletter, article, trading alert, corporate profile, sector or industry snapshot, podcast interview, or press release is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed and is to be used for informational purposes only. Please read all associated full disclosures, disclaimers, and analyst background on our website before investing. Neither Goldman Small Cap Research nor its parent is a registered investment adviser or broker-dealer with FINRA or any other regulatory agency. A Speculative Buy rating for our covered companies is defined as a company that we believe exhibits the potential to generate outsized returns despite inherent, above-average business, market, or financial risk. To download this research report, or any of our research, view our disclosures and disclaimers, or for more information, visit www.goldmanresearch.com. In 2022, Goldman Small Cap Research was compensated $6500 by a third party for research report production.

Contact:

Goldman Small Cap Research
Rob Goldman, Analyst
410-609-7100
rob@goldmanresearch.com

SOURCE: Goldman Small Cap Research

View source version on accesswire.com:
https://www.accesswire.com/695454/Goldman-Small-Cap-Research-Publishes-New-Research-Report-on-First-Wave-BioPharma-Inc

FAQ

What is the price target for First Wave BioPharma (FWBI)?

The report includes a price target for First Wave BioPharma, reflecting a modest premium to its 52-week high.

When will FWBI publish clinical results for its COVID-19 gastrointestinal trial?

FWBI is expected to publish top-line results for its Phase 2 COVID-19 GI trial in the first half of 2022.

What is the revenue potential for FWBI's pipeline?

The pipeline represents billions in potential revenue, with projections of $50 million in royalties in 2023.

How does Goldman Small Cap Research view FWBI's management?

Goldman notes management has a history of successful product development and exits, which is seen as a positive for FWBI.