Assembly Biosciences (NASDAQ:ASMB)

Assembly Biosciences, Inc. (NASDAQ Capital Market: ASMB)
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Thesis: Speculative CAPS-only pick, not a recommendation. Company prospects are down somewhat since pick was made.
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Assembly Biosciences (ASMB) was created in mid-2014 when publicly-traded dollar-stock, Ventrus Biosciences Inc. (NASDAQ: VTUS), acquired privately-owned Assembly Pharmaceuticals, Inc. in an all-stock deal. On the same day, the merged company effected a 1-for-5 reverse stock split, raising its shares out of the penny-stock realm. The company also changed its name to Assembly Biosciences, and began trading on NASDAQ under the symbol ASMB.

ASMB has legacy developmental products from Ventrus, who had focused on developing and commercializing drugs for gastrointestinal disorders; specifically hemorrhoids, anal fissures, and fecal incontinence. They have a collaboration agreement with Allergan Pharmaceuticals Int'l Ltd. for the development and commercialization of selected microbiome gastrointestinal programs.

The former Assembly Pharmaceuticals was developing a new class of oral small-molecule therapeutic candidates for the treatment of chronic hepatitis B virus (HBV) infection. Specifically, they were, and are, involved in the development of core protein allosteric modulators (CpAM) that modulate the HBV core protein at various points in the viral lifecycle.

ASMB has released interim data on a Phase 1b/2a study of their novel CpAM candidate ABI-H0731 for the treatment of chronic HBV infection. The data is encouraging, as the drug is seen as effective, generally safe and well tolerated, and no dose limiting side effects were seen.

Competitors of ASMB with similar-acting drugs have also been releasing their own Phase II study data with similar results, so ASMB does not stand out as having the superior drug at this time. Johnson & Johnson is developing JNJ-56136379, Hoffmann-La Roche is developing RO7049389, and Spring Bank Pharmaceuticals is developing inarigivir soproxil (formerly known as SB 9200).

There are currently effective treatments in the marketplace for HBV, but not yet a functional cure. The goal is to find a drug combination that will permanently cure HBV infected patients. Combination therapies in Phase II studies may provide for an aseptic cure, but it is not clear now which company or companies will be successful. Many years of drug development still lay ahead of them.

Stock is covered by at least six analysts with a $45-$84 price target range (average $58.00). Higher estimates may be from before the Apr 12th EASL’s 2018 International Liver Congress, where ASMB, Johnson & Johnson and Hoffmann-La Roche all presented some of their Phase II data for their similar drugs, and ASMB was found not to have any significant advantages over their competitors, and to be slightly behind in the progress of their trials.

As of May 2, 2018, there were 20,550,718 common stock shares outstanding.
Short interest reported on Apr 13, 2018 was 502,904 shares, which is 2.4% of total shares.

Price: $54.47 | Annual Dividend: $0.00 | Dividend Yield: 0.00%

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