PolyMedix ($PYMX) - Cowen Research Report is released

PolyMedix (PYMX) -- Outperform (1)

PYMX files 10K; focus remains on antibiotic & heptagonist data expected 1H12

Summary: PolyMedix filed its 2011 10K last night, reporting 4Q11/FY11 numbers. There were no significant updates in the 10K, other than the financials, and investors' attention remains focused on the PMX-30063 (antibiotic) and PMX-60056 (heptagonist) Phase II data expected in 1H12.

• Antibiotic data, expected in a few weeks, represent the moment of truth for PYMX. We believe that the full data from PMX-30063's trial in ABSSSI, which will include data from MRSA patients, will be a very significant milestone for PYMX shares, since it will represent the first time that one of the company's compounds will have been tested in 1) a relatively large 2) patient population. If the full Phase II data replicate what we saw in the first ~80 patients, especially if the drug continues to demonstrate 1) very high clinical response rates, averaging 92% among the four groups, and 2) a clean safety profile, we expect the market to start paying much closer attention to PYMX. Given the compound's first-in-class status, coupled with its mechanism of action, that carries the theoretical potential to overcome resistance, we believe that if the full Phase II data corroborate what we saw in the interim look, investors will start viewing PMX-30063 as a compound with significant commercial potential.
• Data from two PMX-60056 trials expected in 1H12. In addition to PMX-30063, investors will be watching for data from: 1) the 40-patient Phase II trial of PMX-60056 in PCI (Percutaneous Coronary Intervention), and 2) the Phase Ib/II dose-ranging trial of PMX-60056 in the reversal of Lovenox.
• 4Q11/FY11 numbers reported. PYMX spent $6.7M ($4.9M in R&D, $1.9M in SG&A) in 4Q11 and $21M ($13.8M in R&D, $7.2M in SG&A) in FY11, and ended 2011 with $14.6M in net cash ($21.4M in cash, minus $6.8M in debt).

Simos Simeonidis, Ph.D.
(646) 562-1386
simos.simeonidis@cowen.com

Yatin Suneja
(646) 562-1388
yatin.suneja@cowen.com

PolyMedix ($PYMX) Cowan Research

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