A lean and mean drug discovery machine

Lighthouse | 27 March 2018

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  • e-Therapeutics (ETX) reported FY18 financial results, posting an operating loss of £6.8m (FY17: £16.3m). Cash and equivalents at 31 January 2018 stood at £9.6m (FY17: £14.0m).
  • The recent strategic review has positioned ETX to focus on value creation through commercialisation of its network-driven drug discovery (NDD) platform and assets.
  • Internally, resources are directed into fewer higher-value commercially relevant projects. The three core areas are (1) creation and licensing of partner-ready programmes in high value areas (eg fibrosis); (2) out-licensing of in-house NDD-derived immuno-oncology assets (tryptophan catabolism, immune checkpoint modulation); and (3) enhancing the capabilities of the NDD platform. Progress was made on all fronts during FY18.
  • The external emphasis is on marketing and business development, raising ETX’s profile. In September 2017, BD activities focused on the NDD platform were initiated, resulting in several ongoing late-stage discussions with various potential partners. Marketing of the immuno-oncology assets began in March 2018. Potential collaborations or other types of deals could be struck over the next 12 months.
  • Deals will provide platform validation and benefit ETX financially, providing R&D funding or cash for assets. In the absence of deals, continued strategic execution (investment in platform and programmes), or potential M&A opportunities to augment the NDD platform, would require new funds.

Trinity Delta view: Following conclusion of its strategic review, under a new CEO, e-Therapeutics is embarking on the next step in its evolution. Its more focused and commercially relevant strategy, recent progress, and growing profile, should attract increasing attention from industry partners. Management, and we, continue to be confident that e-Therapeutics will sign one or more drug discovery alliances in the next 12 months. Careful cost control (end-FY18 cash higher than our forecast) and prudent investment in developing its unique NDD platform, means we continue to believe that the company has sufficient resources to allow it to operate into 2019. Deal(s), or other forms of funding, would increase this cash runway. We value e-Therapeutics at £53.8m or 20.4p/share.


27 March 2018

Price (p)8.75
Market Cap (£m)23.5
Primary exchangeAIM London
Company CodeETX
Corporate clientYes

Company description

e-therapeutics is a drug discovery company with a proprietary network-driven drug discovery (NDD) platform. Following management changes and a strategic review, the focus is on its immuno-oncology projects, the next generation of the platform, and on securing industry collaborations and partners.


Mick Cooper PhD
+44 (0) 20 3637 5042

Lala Gregorek
+44 (0) 20 3637 5043


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