The assertion was made by HC Wainwright’s Raghuram Selvaraju, who repeated his 'buy' advice and £5 price target.....5 times current share price.

Tiziana Life Sciences PLC’s (LON:TILS, NASDAQ:TLSA) diagnostics spinout could be worth significantly more than Tiziana itself, according to a leading Wall Street healthcare analyst.

The documentation around the planned demerger of StemPrintER is expected to go out to investors shortly after the company’s AGM on July 16.

And as a publicly-listed business, it is worth around 10% of the value of Genomic Health, the nearest competitor, HC Wainwright’s Raghuram Selvaraju reckons.

On that basis then its value should be in the region of US$280mln, which compares with Tiziana’s current market capitalisation of US$226mln.

“In our view, StemPrintER could begin trading as a separate entity well before the end of this year,” said Selvaraju in a note repeating his ‘buy’ recommendation and US$25 a share price target.

Left out the discounted cash flow analysis that provided the target was Tiziana’s foralumab in areas other than Crohn's disease, milciclib in diseases beyond liver cancer and TZLS-501 for any indication.

The most startling omission would appear to be TZLS-501, which is being “aggressively advanced” for the treatment of COVID 19.

As part of the fast-track process the company has signed an agreement with STC Biologics for the good manufacturing practice (GMP) production of TZLS-501, a class of monoclonal antibody (mAb) called an anti-interleukin-6 receptor, or anti-IL6R for short.

It is also working with a firm called Sciarra Laboratories on a unique technology that sends the drug directly to the lungs using a handheld inhaler or nebuliser.

Certain biochemical features of TZLS-501 may translate into “potentially distinctive clinical advantages in achieving rapid suppression of cytokine storm at much lower doses” that would help treat the symptoms of COVID-19, HCW’s Selvaraju said.

“We are also intrigued by the potential advantage that may be conferred by the inhalation-based route of administration that Tiziana plans to develop for TZLS-501—this would be in contrast to Kevzara and Actemra, which are given systemically via intravenous infusion,” he added.

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