Scancell
Oxford, United Kingdom

Scancell is a clinical-stage immuno-oncology specialist that is developing two innovative and flexible therapeutic vaccine platforms. ImmunoBody and Moditope induce high avidity cytotoxic CD8 and CD4 responses, respectively, with the potential to treat various cancers.

www.scancell.co.uk

Investment Perspective

Scancell has reported H119 results in line with expectations. The cash position was £7.6m, with the net loss of £3.24m compensated for by the two equity raises, totalling £14.9m, over the past year. Development appears to be progressing well, with important clinical programmes expected to start patient recruitment during the next two quarters. Additionally, in January 2019 the management team has been strengthened by two important new hires. As detailed in our Initiation note, we value the company, using a risk-adjusted DCF model, at £82.0m, or 21.1p a share.

Market information

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SCLPAIM LondonGBP
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Research

Interim results show progress being maintained
Update | 31 Jan 2019
Missing out on the CRUK Grand Challenge
Lighthouse | 23 Jan 2019
Opening new pathways in immuno-oncology
Initiation | 28 Nov 2018

Recent News

Grant of Japanese patent that protects Moditope immunotherapy platform
08 Apr 2019
CSO receives Waldenstrom award from Swedish Society of Oncology
21 Mar 2019
IP portfolio strengthened
20 Mar 2019
Interim H119 results
31 Jan 2019
Hutchison China MediTech
Hong Kong, China

Hutchison China MediTech, 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.chi-med.com

Investment Perspective

Data at AACR from two key non-small cell lung cancer (NSCLC) trials has shown that savolitinib has encouraging anti-tumour activity and an acceptable safety profile both as monotherapy in exon 14m/del NSCLC, and in combination with osimertinib in MET+ EGFR-TKI refractory NSCLC. These presentations increase our confidence in Hutchison China MediTech (Chi-Med) and partner AstraZeneca’s ability to launch savolitinib, as the first available selective c-Met inhibitor, in its respective NSCLC settings in 2021 (China: MET exon 14m/del) and 2022 (Global: in combination with osimertinib), subject to positive trial read outs and subsequent approvals. We upgrade our valuation to $35.57/ADS or £54.72/share.

Market information

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Research

Proposed listing in Hong Kong and global offering
Lighthouse | 15 Apr 2019
AACR 2019: Savolitinib in the spotlight in NSCLC
Update | 09 Apr 2019
Bringing Global Innovation and China Oncology into focus
Update | 21 Mar 2019

Recent News

Application to list in Hong Kong and proposed global offering
15 Apr 2019
Initiation of Surufatinib China Phase IIb/III in Unresectable or Metastatic BTC
29 Mar 2019
Oral Presentations on Savolitinib Lung Cancer Programs at AACR
28 Mar 2019
2018 Annual Report and Notice of AGM
21 Mar 2019
Mereo BioPharma
London, United Kingdom

Mereo BioPharma develops and commercialises innovative therapeutics addressing rare and specialty diseases. These are acquired or licensed in at clinical stages from large pharmaceutical companies. The portfolio consists of four compounds that are progressing through late clinical development.

www.mereobiopharma.com

Investment Perspective

Mereo BioPharma has built a pipeline of four late-stage clinical assets as it focuses on becoming a rare disease, specialty pharmaceutical company. Its orphan disease products are BPS-804 for osteogenesis imperfecta (brittle bone disease), and MPH-966 for the treatment of alpha-1 antitrypsin deficiency (AATD). The strategy is to in-license more late-stage assets for the treatment of rare diseases. A proposed combination with OncoMed Pharmaceuticals would add two more clinical programmes but, more importantly, extends the cash runway through 2020, brings US infrastructure, and a NASDAQ listing. Pending approval, we have suspended our forecasts and valuation. Our prior valuation was £510m, or 615p a share (fully diluted).

Market information

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MPHAIM LondonGBP
Last PriceMarket Cap
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Research

Path cleared for partnering of acumapimod (BCT-197)
Lighthouse | 16 Apr 2019
Executing a well articulated strategy
Outlook | 31 Jan 2019
Merger with NASDAQ-listed OncoMed
Lighthouse | 07 Dec 2018

Recent News

Successful end of Phase 2 meeting with FDA
15 Apr 2019
Publication of F-4
21 Mar 2019
Filing of F-4
25 Jan 2019
BGS-649 Phase IIb data to be presented at ENDO 2019
15 Jan 2019
Tissue Regenix Group
Leeds, United Kingdom

Tissue Regenix is a regenerative medicine company with a portfolio of soft tissue and bone products and two proprietary platform, dCELL, and BioRinse. Applications include wound care/general surgery, orthopaedics, sports medicine, and dental care. Commercialisation of the leading products are underway.

www.tissueregenix.com

Investment Perspective

Tissue Regenix Group grew underlying revenues by 47% to £11.6m, ahead of our forecasts. This was achieved through the efficient integration of CellRight Technologies and the benefits of the new commercialisation strategy. Tissue Regenix now has a more focused direct marketing approach and is leveraging the return on its research and manufacturing capabilities by entering into strategic partnerships, such as those signed with ARMS Medical and Arthrex, Inc. These new relationships should sustain the strong growth of Tissue Regenix. Our valuation is unchanged for now at 20.9p/share.

Market information

SymbolPrimary exchangeCurrency
TRXAIM LondonGBP
Last PriceMarket Cap
52 Week Low52 Week High

Research

New strategy delivering results
Update | 04 Feb 2019
Arthrex collaboration extended into Europe
Update | 13 Nov 2018
Executing the plan
Update | 03 Sep 2018

Recent News

Expands US GPO coverage for DermaPure
04 Apr 2019
Trading update
04 Feb 2019
Interim management change
05 Dec 2018
Pan-European distribution agreement with Arthrex
13 Nov 2018
Nexstim
Helsinki, Finland

Nexstim is a targeted neuro-modulation company that has developed a proprietary navigated rTMS platform for use in diagnostics (NBS) and therapeutics (NBT). NBS is used in planning brain surgery while NBT is focused on depression and chronic pain. FDA approval for depression was given in 2017, and the focus is on commercial roll out in the US, Europe and Asia.

www.nexstim.com

Investment Perspective

Nexstim is embarking on the next stage of its journey in commercialising its Navigated Brain Therapy (NBT) platform in MDD (major depressive disorder). The recently reported FY18 results confirmed operational progress was much as expected. A sizeable rights issue is planned, with the aim of securing sufficient funding to support the commercial roll-outs of NBT in depression in North America and Europe. It was also announced that the NBS pre-surgical mapping platform may be divested. We have updated our valuation and financial model to reflect the expected changes. We now value the company at €10.5m or €3.23 per share (also €3.23 diluted), against €32.0m, or €10.5/share (also €10.5 diluted) were financial risk removed.

Market information

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NXTMHFirst North HelsinkiEUR
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Research

Terms of the rights issue announced
Lighthouse | 28 Mar 2019
Securing the commercial future of NBT in depression
Update | 18 Mar 2019
Achieving commendable outcomes in depression
Update | 20 Dec 2018

Recent News

Professor Turo Nurmikko joins Scientific Advisory Board
16 Apr 2019
Professor Alvaro Pascual-Leone joins Scientific Advisory Board
10 Apr 2019
EC Certificate renewed
09 Apr 2019
Professor Linda Carpenter joins Scientific Advisory Board
05 Apr 2019
Bonesupport
Lund, Sweden

Bonesupport is an orthobiologics company focused on developing and commercialising a pipeline of unique injectable drug-eluting, bioceramic bone graft substitutes based on its proprietary CERAMENT technology.

www.bonesupport.com

Investment Perspective

Bonesupport has emerged from its transition year with FY18 results highlighting the progress, and investment, in implementing commercial initiatives to accelerate global CERAMENT penetration. The switch to direct sales from October 23 and prior supply issues at the exclusive distributor impacted US sales (SEK34.1m vs SEK 78.1m in FY17). Europe/ROW delivered strong sales growth (+22% to SEK62.5m) as the high margin antibiotic eluting products continue to gain traction. We anticipate increased sales in 2019 as the expanded global commercial footprint beds down, key clinical data (eg CERTiFy) are leveraged, and new US GPO contracts are secured. This provides a solid foundation for the company to achieve its target of 40%+ revenue growth from 2020 onwards. We value Bonesupport at SEK39/share (SEK 2.042bn).

Market information

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BONEXOMX StockholmSEK
Last PriceMarket Cap
52 Week Low52 Week High

Research

Gearing up for growth
Update | 01 Mar 2019
Key CERTiFy study confirms CERAMENT’s properties
Update | 19 Nov 2018
Stronger commercial platform to make strategic inroads
Update | 08 Nov 2018

Recent News

UK study confirms active remodelling of CERAMENT into human bone
10 Apr 2019
US portfolio expansion with BONIFY launch
13 Mar 2019
FY18 results
27 Feb 2019
Publication of preclinical CERAMENT data in large bone defects
08 Feb 2019
e­-therapeutics
Oxford, United Kingdom

e­-therapeutics is a drug discovery company with a proprietary network­ driven drug discovery platform, which uses using artificial intelligence (AI), machine learning and other computational techniques.

www.etherapeutics.co.uk

Investment Perspective

e-therapeutics ended its FY19 (year-ending 31 January 2019) on a high, securing its first commercial collaboration with Novo Nordisk in December (see Update note). Business development and cost control were the focus areas for FY19. The Novo deal in Type 2 diabetes marked a first success on the former, providing important validation for e-therapeutics’ proprietary Network-Driven Drug Discovery (NDD) platform. Prudent cost management means end-FY19 cash of £5.9m, coupled with an anticipated £1.1m tax credit, provides a two-year runway on our estimates. The goal is to now capitalise on ongoing, and new, business development discussions covering the full range of e-therapeutics’ assets and capabilities, to help progress NDD-derived projects and further exploit the NDD platform. Our valuation is £57.8m (21.9p/share).

Market information

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ETXAIM LondonGBP
Last PriceMarket Cap
52 Week Low52 Week High

Research

Setting the stage
Update | 06 Mar 2019
First commercial deal secured with global diabetes leader
Update | 10 Dec 2018
New insights from Parkinson’s disease collaboration
Update | 06 Dec 2018

Recent News

Notice of AGM and annual report
08 Mar 2019
FY19 results
05 Mar 2019
Research Collaboration with Novo Nordisk
10 Dec 2018
Initial results of C4X Parkinson’s Disease Collaboration
06 Dec 2018
MaxCyte
Gaithersburg, United States

MaxCyte has a patented flow electroporation platform, which can transfect a wide array of cells. It generates revenues from the sale and lease of equipment, disposables and licence fees; with an impressive client list. Additionally, a novel mRNA mediated CAR technology, known as CARMA, is being explored in various cancers, including solid tumours.

www.maxcyte.com

Investment Perspective

MaxCyte saw strong progress on all fronts in H218. There was a marked acceleration in revenues and in new cell therapy licenses, and the first patient was treated with MaxCyte’s wholly-owned CARMA therapy. Sales growth in FY18 was c19% compared to 14% in FY17 following an increase in revenues of c25% in H218. The number of licensed cell therapy programmes has risen by c15 to >70 over the last six months; and commercial licensing agreements were signed with two companies. On top of this, MaxCyte advanced its first CARMA therapy into the clinic; promising results from this trial could lead to the CARMA platform becoming the main value driver for MaxCyte. We have increased our valuation by 11p/share to 358p/share.

Market information

SymbolPrimary exchangeCurrency
MXCTAIM LondonGBP
Last PriceMarket Cap
52 Week Low52 Week High

Research

Capital raised to advance CARMA primarily
Lighthouse | 06 Feb 2019
Picking up the pace
Update | 15 Jan 2019
Momentum building in Cell Therapy and CARMA
Outlook | 05 Dec 2018

Recent News

Launch of ExPERTT instrument family
08 Apr 2019
Clinical and commercial agreement with Kite
01 Mar 2019
Results of placing
05 Feb 2019
Proposed placing to raise a minimum of £10m
05 Feb 2019
Kind Consumer
London, United Kingdom

Kind Consumer has developed a novel nicotine delivery device that mimics the important aspects of cigarette smoking. Uniquely, the Voke device is registered as a medical product, yet it can still be sold easily (General Sales List). Management aims to market Voke directly in the UK, ahead of licensing out for other geographies.

www.kindconsumer.com

Investment Perspective

Kind Consumer is poised to introduce Voke, a novel nicotine delivery device, into the UK market. Voke closely mimics the key aspects of cigarette smoking, but without tobacco’s harmful effects. The notable recent shifts in consumer acceptance of such novel devices suggest market adoption will be positive. The development, regulatory, and production processes have now been completed. Management is seeking funds to execute its commercialisation plans. Our rDCF valuation, using modest assumptions for the UK only, yields a value of £154m.

Market information

SymbolPrimary exchangeCurrency
N/APrivateGBP

Research

No smoke but plenty of fire
Initiation | 11 Oct 2017

Recent News

Appointment of new CEO
01 Jan 2019
Further funding to support manufacturing facilities and commercial launch of Voke
15 Aug 2018
BAT and Kind Consumer announce new approach to commercialise Voke
05 Jan 2017
BerGenBio
Bergen, Norway

BerGenBio is a clinical-stage, biopharmaceutical company based in Bergen, Norway and Oxford, UK. It is developing innovative therapies for aggressive cancers by way of inhibiting the Axl signalling pathway. The lead oncology compound, bemcentinib, is in multiple Phase II trials.

www.bergenbio.com

Investment Perspective

BerGenBio has reported promising results from its broad Phase II programme with bemcentinib focussed on acute myeloid leukaemia (AML) and non-small cell lung cancer (NSCLC) throughout 2018. Most notable were the data from the study in NSCLC in combination with the PD‑1 inhibitor pembrolizumab, in which patients with PD-L1 negative tumours responded well to therapy. The results thus far indicate the importance of biomarkers to identify those patients with Axl+ tumours, who are most likely to benefit from bemcentinib. The company is planning a series of randomised Phase II trials to confirm the findings to date, which are due to start in H219. BerGenBio also has two other products that have just entered clinical development. We value the company at NOK3.14bn, or NOK57.45/share.

Market information

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BGBIOOsloNOK
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Research

Efficacy endpoint met in Phase II AML study
Lighthouse | 02 Apr 2019
Further support for bemcentinib’s broad potential from preclinical data at AACR
Lighthouse | 01 Apr 2019
Resolution of Rigel arbitration reduces uncertainty
Lighthouse | 01 Mar 2019

Recent News

Phase II bemcentinib + Keytruda NSCLC trial extended
02 Apr 2019
Preclinical data at AACR reinforces bemcentinib’s potential to reverse tumour immunosuppression and therapy resistance
02 Apr 2019
Bemcentinib with low-dose chemotherapy achieves efficacy endpoint in AML
01 Apr 2019
Key Executive Team and Board Appointments
14 Mar 2019