First Berlin Equity Research on 02/04/2025 initiated coverage on Rakovina Therapeutics Inc. (ISIN: CA75103L1013/ Bloomberg: RKV CN). Analyst Alexander Rihane placed a BUY rating on the stock, with a CAD 0.40 price target.

Abstract
Rakovina Therapeutics (Rakovina) is a promising preclinical-stage biotech company focused exclusively on DNA Damage Response (DDR) pathways, which is developing next-generation anti-cancer compounds discovered through artificial intelligence (AI). Its lead programmes target PARP and ATR, two well-validated mechanisms in oncology. The drug target PARP is very well understood and has been used by other companies’ first-generation PARP inhibitors (PARPis) marketed since 2014. Rakovina’s next-generation PARPis are designed to address key limitations of first-generation PARPis-namely, their poor brain penetration and high toxicity-by offering the potential for safer, more effective treatments, including in combination therapies. The company aims to secure a licensing deal for its lead preclinical stage PARP inhibitor programme in H2/25 (FBe: H1/26), followed by its ATR inhibitor series thereafter (FBe: H2/26). The PARPi market is projected to grow from USD 4bn in 2024 to USD 16bn by 2034 (~15% CAGR), and DDR is attracting strong deal activity-about USD4.4bn in recent licensing partnerships at preclinical or early clinical stage. Rakovina is well-positioned in a space with proven Big Pharma interest. Given the company’s focused pipeline, near-term deal potential, and relatively de-risked profile within the biotech sector, we initiate coverage of Rakovina with a Buy recommendation and a price target of CAD 0.40.