First Berlin Equity Research has published a research update on Sernova Biotherapeutics Inc. (ISIN: CA81732W1041). Analyst Christian Orquera reiterated his BUY rating and maintained his CAD 1.90 price target.

Abstract
Sernova Biotherapeutics Inc has submitted an Investigational New Drug (IND) application to the FDA to test its Cell Pouch in patients with hypothyroidism following total thyroidectomy, a surgical procedure to remove the thyroid gland when nodules are present. The company anticipates that following treatment each patient’s own thyroid tissue will regain its natural ability to release thyroid hormones in the Cell Pouch without the need for lifelong hormone replacement or immunosuppression, thereby curing the patient. We note that preclinical data showed successful restoration of thyroid hormone levels and functional thyroid tissue within the device. Subject to IND approval by the FDA and, in particular, the necessary funding, we expect Sernova to initiate a first-in-human clinical trial in the second H2 2025 or H1 2026 to investigate the safety and efficacy of this approach. This is positive news as the company is one step closer to potentially advancing a second product into clinical trials. With regard to the ongoing lead phase 1/2 clinical trial of the Cell Pouch for the treatment of type 1 diabetes (T1D), we expect final results for cohort B for all of the up to four planned last patients (patients #7 to #10) by mid-2025. Based on unchanged pipeline estimates, we confirm our CAD1.90 price target and our Buy rating.