(MENAFN- ProactiveInvestors - UK) Anti-biotic resistance is a major health concern for medical bodies across the world and one that needs to be addressed fast.
The world could face 10mln lives lost every year and up to US$100trn in lost productivity by 2050, according to experts.
An estimated 50,000 deaths already occur annually across Europe and the US due to antibiotic resistance.
Currently listed on London's junior market AIM, the biotech group Motif Bio Plc (LON:MTFB) is developing new types of anti-biotics to combat resistance.
The development of novel antibiotics is an important part of the solution to this looming crisis.
In preparation for its up-coming US drug launch, earlier this month Motif Bio said it planned to list on NASDAQ.
Analysts at Northlands Capital said there was a 'chronic under-investment' in the area by the pharmaceutical industry, but that means big potential for Motif.
The broker said that a US listing could help bridge the significant valuation gap between Motif and its US peers.
Other companies operating in the same field in the US include Cempra (NASDAQ:CEMP) and Paratek (NASDAQ:PRTK), both listed on NASDAQ, are valued significantly more than Motif.
'We believe that the discrepancy in pricing between the group and its US-peers would be thrown into sharp relief,' said the analysts.
Motif already has all-important FDA consent to conduct Phase 3 clinical trials for iclaprim in two requested indications, Acute Bacterial Skin and Skin Structure Infections and Hospital Acquired Bacterial Pneumonia.
Northland estimates sales of the treatments could easily reach billions of dollars a year once it reaches the commercial market.
Through the listing, Motif expects to raise up to US$60mln selling around 100mln shares.
With the potential of the drug in the US and the up-coming listing, Northlands Capital has raised its target price from 114p to 140p, indicating a significant potential upside of 200% on the current price of 48p per share.
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