Arecor Therapeutics
Little Chesterford, United Kingdom

Arecor is a revenue-generating clinical-stage drug developer. Its proprietary Arestat formulation platforms are the basis of an in-house and partnered pipeline of enhanced products with lower development risks and less onerous regulatory approvals.

www.arecor.com

Investment Perspective

Arecor is leveraging its Arestat formulation expertise to create an attractive and well-balanced pipeline of in-house and partnered products. These are novel formulations of existing drugs that offer clinically significant benefits, carry lower development risk, and have faster regulatory pathways to market. Investor attention is, rightly, focused on the attractive diabetes assets (the ultra-rapid insulins AT278 and AT247), but the Specialty Hospital products tend to be overlooked. This is understandable as commercial sensitivities limit information flow, yet the milestones and royalties have the potential to build into a valuable recurring revenue stream. Progress across the mix of in-house and partnered programmes should provide a meaningful blend of value inflection points. Our valuation is £179m, or 584p per share.

Market information

SymbolPrimary exchanges
ARECAIM London

Research

AT278 ultra-concentrated insulin superior to benchmarks
Update | 20 May 2024
FY23 results evidence broader revenue base
Lighthouse | 16 May 2024
Novel diabetes drug-device deal inked with Medtronic
Lighthouse | 09 May 2024

Recent News

Result of placing and subscription
19 Jul 2024
WRAP retail offer to raise up to £1m
19 Jul 2024
Proposed placing and subscription
19 Jul 2024
Trading and funding update
10 Jun 2024
Avacta
Wetherby, United Kingdom

Avacta is a UK-based biopharmaceutical company developing next-generation targeted cancer treatments, based on its two proprietary platforms: pre|CISION and Affimer.

www.avacta.com

Investment Perspective

Avacta’s proprietary pre|CISION platform is central to the investment case and the current lead programme is AVA6000, a peptide-drug conjugate of doxorubicin. A growing dataset demonstrate that AVA6000 is selectively activated at the target tumour site, resulting in lower toxicities than standard doxorubicin, and has improved tolerability. There have also been promising, albeit early, signs of clinical activity, with anti-tumour effects observed. Importantly, data also support key hypotheses for the wider pre|CISION platform, which could unlock an extensive opportunity to develop next-generation targeted cancer treatments through repurposing a range of proven, but currently sub-optimal, therapies. The Phase I trial of AVA6000 is ongoing with a potentially optimised two-weekly dosing schedule, and is on track to complete around mid-2024, before progression into dose expansion cohorts during H224. In addition, details on the broader pre|CISION pipeline are expected during H224. Our Avacta valuation is £675m, or 188p/share.

Market information

SymbolPrimary exchanges
AVCTAIM London

Research

Data and clinical progress validate pre|CISION platform
Update | 06 Jun 2024
Therapeutics focus sharpening; cash to key catalysts
Lighthouse | 30 Apr 2024
AACR data continue to support confidence in AVA6000
Lighthouse | 10 Apr 2024

Recent News

Convertible Bond payment
18 Jul 2024
AGM Business Update
26 Jun 2024
Shaun Chilton appointed Non-Executive Chairman
20 Jun 2024
Completion of first 2-weekly cohort
23 May 2024
ANGLE
Guildford, United Kingdom

ANGLE is a specialist diagnostics company. Its proprietary Parsortix technology can capture and harvest very rare cells, including CTCs (circulating tumour cells), from a blood sample. The FDA approval for its clinical use to guide precision cancer care will open up further multiple commercial opportunities.

www.angleplc.com

Investment Perspective

ANGLE’s investment case rests on where Parsortix’s position in mainstream cancer diagnostics eventually lands. The place of liquid biopsies is now established and, increasingly, the additional clinical value that CTC (circulating tumour cells) assays bring is becoming clear. Addressing the many, varied opportunities directly is challenging and time consuming, with numerous barriers to overcome. Management is creating industry awareness through its demonstration and acceleration activities, which should drive near- and medium-term revenues. Similarly, a progressively robust bank of clinical data across multiple common tumours is building credibility. We view the ability to perform ctDNA and CTC DNA analysis concurrently, from a single blood draw, on third-party NGS and PCR platforms as providing a major driver for adoption. Our DCF-based valuation of ANGLE is £174m, or 67p/share.

Market information

SymbolPrimary exchanges
AGLAIM London

Research

Scaling the business to drive continued momentum
Lighthouse | 06 Jun 2024
Gathering momentum in Pharma Services
Update | 14 May 2024
Building content to drive widespread adoption
Update | 30 Jan 2024

Recent News

Result of open offer
21 Jun 2024
Parsortix and assays showcased at EACR 2024
11 Jun 2024
Publication of Circular
06 Jun 2024
Results of placing and subscription
05 Jun 2024
Redx Pharma
Alderley Edge, United Kingdom

Redx Pharma specialises in the discovery and development of small molecule therapeutics, with an emphasis on fibrotic disease. It aims to initially progress programmes through proof-of-concept studies, before evaluating options for further development and value creation. Existing earlier-stage collaboration partners include AstraZeneca and Jazz Pharmaceuticals.

www.redxpharma.com

Investment Perspective

Redx Pharma has now delisted from AIM and re-registered as a private company. The focus remains on fibrosis, and key internal programmes include two clinical ROCK inhibitors and a preclinical DDR inhibitor. Management expects top-line Phase IIa data for zelasudil in IPF (idiopathic pulmonary fibrosis) during 2024, whilst initial safety data in healthy volunteers from the Phase I trial of RXC008 for fibrostenotic Crohn’s disease are expected towards end-2024. Redx also has a number of existing partnerships in place across four programmes; three with Jazz Pharmaceuticals, and one with AstraZeneca. RXC004 (zamaporvint), which recently reported Phase II data in combination with checkpoint inhibitors (CPI) for Wnt-ligand dependent cancers, has been earmarked for partnering.

Market information

SymbolPrimary exchange
REDXN/A

Research

Focus remains firmly on fibrosis and related diseases
Report | 10 Jul 2024
Voluntary delisting from AIM to go private
Lighthouse | 02 Apr 2024
Ready to ROCK as RXC008 enters the clinic
Update | 28 Feb 2024

Recent News

Encouraging zamaporvint Phase II data at ESMO GI
28 Jun 2024
Zamaporvint Phase II data presentation at ESMO GI
20 Jun 2024
RXC008 preclinical data in oral presentation at ECM Congress
14 Jun 2024
Changes to board composition
14 May 2024
Futura Medical
Guildford, United Kingdom

Futura Medical is the developer of innovative sexual health products; its core strength is in its research, development, and commercialisation of topically delivered gel formulations. Lead product Eroxon (MED3000) is the first clinically proven topical gel to treat erectile dysfunction (ED) approved OTC (without a prescription) in the US and Europe.

www.futuramedical.com

Investment Perspective

Futura Medical’s investment case has shifted firmly onto commercial execution. The highly successful initial launches of Eroxon, its novel topical gel for ED (erectile dysfunction), by partner Cooper Consumer Health in the UK and Belgium are now being followed by roll-outs across the major European markets. The much-anticipated launch in the commercially important US market by consumer healthcare giant Haleon is expected before February 2025. Launches in Other Regions are anticipated throughout 2024. Eroxon offers a unique proposition, being a clinically proven, fast-acting, and safe product that can be easily bought over-the-counter. The market for ED treatments is significant and Eroxon appears ideally placed to carve a sizeable niche for itself. Our updated Futura valuation is £371m, equivalent to 123p per share.

Market information

SymbolPrimary exchanges
FUMAIM London

Research

Eroxon poised for launch in key US market
Outlook | 25 Apr 2024
Profitability in sight as partner preps for US launch
Lighthouse | 10 Apr 2024
Eroxon continues to build, further new launches expected
Lighthouse | 06 Feb 2024

Recent News

AGM statement
20 Jun 2024
FY23 Results
10 Apr 2024
Eroxon to be available on prescription
14 Feb 2024
Trading update
06 Feb 2024
Scancell
Oxford, United Kingdom

Scancell is a clinical-stage immuno-oncology specialist that is developing two innovative and flexible antibody (AvidiMab and GlyMab) and two therapeutic vaccine platforms (Moditope and ImmunoBody) with the potential to treat various cancers.

www.scancell.co.uk

Investment Perspective

Scancell is a clinical stage biotechnology company focused on the adaptive immune system, with four distinct technology platforms: two promising oncology vaccine platforms (Moditope and ImmunoBody), and two antibody technologies (GlyMab and AvidiMab). These have the potential to treat many solid cancers, either as monotherapy or in combination with other agents. Modi-1, the first Moditope programme, is progressing in a Phase I/II trial targeting hard-to-treat solid tumours, and further efficacy data, notably in combination regimens, are due during 2024. The lead ImmunoBody programme, currently SCIB1, has already demonstrated impressive response data in the ongoing Phase II study in metastatic melanoma, with a transition to the next-generation iSCIB1+ expected in coming months. The broad acting GlyMab antibodies are generating exciting preclinical data; a first partnering deal with antibody expert Genmab was executed in October 2022, and further deals are possible. AvidiMab technology could be increasingly employed to enhance avidity and potency. Our risk adjusted NPV valuation for Scancell is £304m, or 33p per share, with significant upside from multiple upcoming catalysts.

Market information

SymbolPrimary exchanges
SCLPAIM London

Research

GlyMab evaluation agreement with major biotech player
Lighthouse | 13 Jun 2024
Heading into important 2024 clinical catalysts
Update | 31 Jan 2024
Successful upsized placing raises over £10m
Lighthouse | 01 Dec 2023

Recent News

Board appointment
10 Jul 2024
Extension of Convertible Loan Notes
02 Jul 2024
Change of NOMAD
21 Jun 2024
Agreement with major biotech
12 Jun 2024
HUTCHMED
Hong Kong, China

HUTCHMED, a Hong Kong-based biopharmaceutical company, is on track to become a global leader in the discovery, development, and commercialisation of innovative, highly selective oral tyrosine kinase inhibitor therapies for oncology and immunological indications.

www.hutch-med.com

Investment Perspective

HUTCHMED is steadily executing on its strategy to accelerate its path to sustainable profitability from FY25. This remains centred around commercial delivery and near-term value creation from the most advanced in-house pipeline assets as the company transitions from a China-based R&D-focused biopharma to a fully integrated commercial enterprise addressing the significant global market opportunity with its Oncology/Immunology products. Commercial traction in China is building for first wave products, partner Takeda has launched the first HUTCHMED product in the US, and key pipeline programmes are progressing with multiple near-term clinical and regulatory catalysts for new indications, new markets, and new products. In our view, HUTCHMED represents a unique biopharma opportunity with a broad pipeline of largely de-risked late-stage assets, global ambitions supported by large pharma partners, proven commercial execution in China yielding a growing top line, all balanced with shrewd investment. Our HUTCHMED valuation is $6.10bn/£5.09bn/HK$47.61bn, or $35.03/ADS and 584p/HK$54.64 per share.

Market information

SymbolExchanges
HCM/0013NASDAQ/AIM London/SEHK

Research

R&D day highlights prospects for key late-stage products
Lighthouse | 11 Jul 2024
Data at EHA 2024 heighten focus on sovleplenib
Update | 25 Jun 2024
Strong US Fruzaqla Q1; EU approval could come soon
Lighthouse | 13 May 2024

Recent News

Tazemetostat China NDA acceptance with Priority Review for r/r FL
04 Jul 2024
Save the Date: R&D Updates on July 9, 2024
24 Jun 2024
European Commission approval for FRUZAQLA (fruquintinib) received by Takeda
22 Jun 2024
Publication of Phase III ESLIM-01 results in The Lancet Haematology
17 Jun 2024