Editas deal marks sixth commercial licence

Update | 7 October 2019

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MaxCyte has achieved another milestone, securing a sixth commercial licence for its Flow Electroporation technology with leading genome editing company Editas Medicine. This new non-exclusive clinical and commercial licence agreement allows Editas to use MaxCyte’s technology and its ExPERT instruments in the development and commercialisation of up to five therapies (sickle cell/beta thalassemia programme EDIT-301 and four immuno-oncology programmes). MaxCyte is eligible for development and approval milestones and sales-based payments in addition to other licensing fees, and revenue from consumables sales. The deal with Editas reinforces MaxCyte’s position as the key enabler for gene edited (including CRISPR-based) therapies, further increasing confidence in our £195m (341p/share) valuation.

Year-end: December 31201720182019E2020E
Sales (US$m)14.016.720.925.2
Adj. PBT (US$m)(9.9)(8.9)(16.6)(16.2)
Net Income (US$m)(9.9)(8.9)(16.6)(16.2)
EPS (USc)(20.4)(17.3)(29.5)(28.3)
Cash (US$m)25.314.413.34.0
EBITDA (US$m)(9.1)(8.1)(15.4)(14.8)
Source: Trinity Delta Note: Adjusted numbers exclude share-based payments and exceptionals.
  • Editas technology licence covers five programmes   This non-exclusive clinical and commercial licence illustrates the versatility of, and demand for, MaxCyte’s non-viral transfection approach, as well as the utility of its next generation ExPERT instruments, in the development and manufacture of cell and gene therapies. The licence covers Editas’ CRISPR-based sickle cell anaemia and beta thalassemia programme, EDIT-301 (currently in IND-enabling activities, with preclinical data expected in H219), as well as four undisclosed immuno-oncology programmes.
  • Undisclosed economics bolster existing revenue potential   At H119 results, MaxCyte confirmed its five existing commercial licences collectively represented >$450m in potential pre-commercial milestones, with undisclosed potential sales economics. The terms of the Editas deal are undisclosed but are likely to make a significant future contribution to, and potentially accelerate, MaxCyte’s 20+% revenue growth expectations. MaxCyte derives revenues from instruments and consumables, while licence fees effectively provide annuity streams as well as the potential for generating somewhat lumpier future milestones as the underlying programmes progress through development and the regulatory process.
  • Valuation maintained at 341p/share We continue to value MaxCyte at £195m or 341p per share, and as the company secures additional clinical and commercial deals, our confidence in its prospects grows. Management have previously indicated that the NPV of each programme with a commercial licence is on average c $10m at the start of clinical development, after considering development and commercial risks. Our valuation of the Life Sciences business excluding CARMA is £111m, and to be conservative, this only includes five programmes entering clinical development although commercial licences signed to date cover 50 programmes.


7 October 2019

Market Cap£62.7m
Enterprise Value£51.2m
Shares in issue57.3m
12 month range110.0-244.0p
Free float70%
Primary exchangeAIM
Other exchangesNA
Company CodeMXCT.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.


Mick Cooper PhD
+44 (0) 20 3637 5042

Lala Gregorek
+44 (0) 20 3637 5041

Exhibit 1: Summary of financials
Source: Company, Trinity Delta  Note: Adjusted numbers exclude exceptionals. No new commercial licensing deals are included in our forecasts.


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