Morgans has this week issued a new research report to its clients, slightly reducing its price target on Tetratherix shares, which we'll get to later.

Progress on several fronts

So what did the company say this week?

Tetratherix's key technology is a fluid matrix that can be used in regenerative medicine across multiple applications.

Chief executive Will Knox said in this week's statement to the ASX that the third quarter was "another strong quarter for Tetratherix as we continued to deliver against key commercial, clinical and strategic milestones''.

He added:

We confirmed readiness to commercialise Tegenix through a global quality and supply agreement with Henry Schein. We also expanded into precision medicine with STEPP, our drug‑delivery platform that has been under stealth development for more than five years. This was folowed by an exclusive R&D agreement with Superpower, under which Tetratherix wil receive licence fees of US$3 milion per year for up to 10 years, together with ongoing purchases of STEPP to support R&D formulation for the US market.

Mr Knox said the company also advanced multiple clinical programs, with encouraging results across tissue healing, "including positive outcomes from the TetraDerm Cohort 1 and 2 studies, and [the company] accelerated the Tutelix pivotal trial program following the successful Series A capital raise by our joint‑venture partner''.

The company was also expecting Food & Drug Administration clearance for its bone regeneration technology this calendar year.

Shares looking cheap

The analyst team at Morgans agreed it was a strong quarter, "achieving multiple clinical, commercial and operational milestones as it advances toward commercialisation''.

The broker said:

Using its innovative Tetramatrix platform technology TTX can develop solutions for multiple medical conditions. TTX is looking to partner with specialist companies to assist with clinical trial, regulatory approvals and market access. We use a discounted cash flow method to value TTX at $6.84. We have set the target price at the same level. We have a speculative buy recommendation on TTX.

Morgans said the company had multiple catalysts for a share price rerating, although it cautioned that positive clinical trial results were not certain and navigating regulatory pathways can be complex.

If the share price were to hit Morgans' price target, it would be a 45.8% return from the current level of $4.69.

Tetratherix is currently valued at $126.9 million.

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