MaxCyte

Consolidating its leadership

Update | 13 July 2017

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MaxCyte is maintaining its leading position in the field of flow electroporation, an enabling technique for many advanced cell therapies. There are now over 45 cell therapies in development that use MaxCyte’s proprietary technologies, and data published so far this year continue to highlight the utility of MaxCyte’s instruments. The company signed a commercial licensing deal in March, and many more could be signed in the coming years. For a number of reasons revenue growth slowed to 13.5% in H117, but we expect significantly stronger growth in H217. We maintain our valuation at £178m, or 351p per share.

Year-end: December201520162017E2018E
Sales ($m)9.312.315.518.5
Adj. PBT ($m)(1.4)(3.3)(11.1)(13.6)
Net Income ($m)(3.5)(3.9)(11.1)(13.6)
Adj. EPS (c)(186.4)(10.0)(22.4)(26.7)
Cash ($m)2.411.726.012.9
EBITDA ($m)(0.7)(2.6)(10.4)(12.8)
Source: Trinity Delta Note: Adjusted numbers exclude share-based payments and exceptionals.
  • Confirming its position as a key enabler for cell therapies During H117, data was published highlighting the ability of MaxCyte’s platform to be used in conjunction with CRISPR technology in gene correction. The company also signed its first commercial licensing deal in the CRISPR field with CRISPR Therapeutics and its joint venture with Bayer, Casebia. The number of cell-based programmes using MaxCyte’s technology across a range of therapeutic areas has increased by about five to over 45 during the last six months.
  • Sales growth expected to bounce back in H217 Sales increased by 13.5% to $6.2m in H117, which compares to 32.1% during FY16. The slowdown in growth reflects a strong comparator in H116, the timing of new high-value cell therapy programme contracts, and some retraining of the sales and marketing teams. We expect MaxCyte’s growth to accelerate again in H217, boosted by the extra resources from the £20m capital raise in April.
  • Current CAR-T discussions highlight attractiveness of CARMA platform The first CAR-T therapies, developed by Kite and Novartis, are approaching the market. However, despite their impressive efficacy, there are potential issues associated with the use of viral transfection and the production time for the personalised therapy. The CARMA approach promises to address both problems. Following encouraging preclinical data, the first clinical study (a Phase Ib trial in ovarian cancer) is due to start in H217.
  • Valuation maintained at 351p per share Our valuation of MaxCyte remains unchanged at £178m, or 351p per share. Similarly, we are making no changes to our forecasts, although we will review them once the H117 results are published. There appears to have been some profit taking over the last few months, such that the shares now trade at 32% below our DCF valuation.

Update

13 July 2017

Price240p
Market Cap£120m
Enterprise Value£91m
Shares in issue50.8m
12 month range81.5p-305p
Free float70%
Primary exchangeAIM London
Other exchangesNA
SectorHealthcare
Company CodeMXCT.L / MXCR.L
Corporate clientYes

Company description

MaxCyte uses its patented flow electroporation platform to transfect a wide array of cells. Revenues arise from 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.

Analysts

Mick Cooper PhD
mcooper@trinitydelta.org
+44 (0) 20 3637 5042

Franc Gregori
fgregori@trinitydelta.org
+44 20 3637 5041

Exhibit 1: Summary of financials

Source: MaxCyte, Trinity Delta Note: Adjusted numbers exclude exceptionals. No commercial licensing deals are included in our forecasts  

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