- Principia is dramatically overvalued because its core strategy - treating autoimmune diseases with BTK inhibitors - is unlikely to work. BTK inhibitors halt the development of new B cells but don't stop existing autoreactive B cells from causing damage.
- After benchmarking PRN1008's pemphigus and ITP Phase 2 data against placebo groups from the scientific literature, its drugs appear totally ineffective and far inferior to standard of care. BTK inhibitors are also unlikely to work in MS, just as with other autoimmune diseases, and the Phase 2 trial design is likely to produce inconclusive, messy results.
- Long-term use of BTK inhibitors increase the odds of serious infections that patients can't overcome on their own, so Principia's approach may also prove unsafe.
- Given its worthless pipeline, Principia's shares have more than 80% downside.
PR Newswire
NEW YORK, Jan. 27, 2020
