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NCI Chooses Veterinary Biopharma as Select Manufacturing Contractor
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The contract's meaning, terms and benefits and the California firm's near-term catalysts are discussed in an H.C. Wainwright & Co. report.

In a Sept. 12 research note, H.C. Wainwright & Co. analyst Swayampakula Ramakanth reported that Kindred Biosciences Inc. (KIN:NASDAQ) was chosen by the National Cancer Institute (NCI) as one of three Current Good Manufacturing Practice (cGMP) contractors for the PREVENT Cancer Preclinical Drug Development Program.

This means that as a select contractor for this NCI-supported program, Kindred, which modifies human therapies for cats, dogs and horses, may "provide manufacturing, formulation and analytical services needed for the preclinical development of innovative cancer prevention interventions and biomarkers" developed through PREVENT, explained Ramakanth. The maximum contract amount is $49.95 million; the term is four years. Also as a manufacturing pool member, Kindred may bid for future contracts.

Ramakanth highlighted that the benefits of this new development are twofold. One, having been chosen by "a leading institution for the development of novel therapies against cancer" validates Kindred's expertise in cGMP manufacturing and project management of biologicals, which it executes on at its Burlingame, Calif., operation. Two, the biopharma could receive nondilutive cash flow from the contract.

Looking to H2/19 for its pipeline therapies, noted Ramakanth, Kindred intends to meet with the European Medicines Agency to discuss the regulatory path for Mirataz (mirtazapine transdermal ointment) in the European Union. It expects a decision in Q4/19 from the U.S. Food and Drug Administration on intravenous Zimeta (dipyrone).

Also, in H2/19, the biopharma expects to announce the results from the pilot effectiveness studies of two clinical molecules: the anti-L-4/IL-13 SINK molecule for atopic dermatitis in dogs and the anti-TNF antibody for inflammatory bowel disease in dogs.

H.C. Wainwright has a Buy rating and a $17.99 per share target price on Kindred Biosciences, whose stock is currently trading at around $7.09 per share.

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Disclosures from H.C. Wainwright & Co., Kindred Biosciences Inc., First Take, September 12, 2019

Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.

I, Swayampakula Ramakanth, Ph.D., Sean Lee, Sean Kang and Arthur He, Ph.D., certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst's household has a financial interest in the securities of Kindred Biosciences, Inc. (including, without limitation, any option, right, warrant, future, long or short position).

As of August 31, 2019 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Kindred Biosciences, Inc.

Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The firm or its affiliates received compensation from Kindred Biosciences, Inc. for non-investment banking services in the previous 12 months.

The Firm or its affiliates did receive compensation from Kindred Biosciences, Inc. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

The Firm does not make a market in Kindred Biosciences, Inc. as of the date of this research report.





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