MaxCyte has filed its first IND with the FDA. This paves the way for a Phase I trial with MCY-M11 (anti-mesothelin CARMA) in peritoneal cancers to start in 2018. The company is also expanding its CARMA programme to target a range of solid and haematological tumours. Revenues in FY17 rose by c 14% to c $14.0m, and the number of cell therapy programmes using MaxCyte’s technology has risen by c 15 to over 50. Despite the good progress, we are reducing our valuation by £12m to £166m, or 327p/share as the level of sales growth in FY17 was weaker than we had forecast.
| Year-end: December 31 | 2015 | 2016 | 2017E | 2018E |
| Sales ($m) | 9.3 | 12.3 | 14.0 | 17.0 |
| Adj. PBT ($m) | (1.4) | (3.3) | (10.6) | (14.6) |
| Net Income ($m) | (3.5) | (3.9) | (10.6) | (14.6) |
| Adj. EPS (c) | (186.4) | (10.0) | (21.7) | (28.8) |
| Cash ($m) | 2.4 | 11.7 | 25.3 | 12.6 |
| EBITDA ($m) | (0.7) | (2.6) | (9.9) | (13.8) |
Update
22 January 2018
| Price | 272p |
| Market Cap | £138m |
| Enterprise Value | £118m |
| Shares in issue | 50.8m |
| 12 month range | 190-298p |
| Free float | 70% |
| Primary exchange | AIM London |
| Other exchanges | NA |
| Sector | Healthcare |
| Company Code | MXCT.L / MXCR.L |
| Corporate client | Yes |
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
Lala Gregorek
lgregorek@trinitydelta.org
+44 20 3637 5043
We have reduced our valuation of MaxCyte from £178m to £166m (or from 351p/share to 327p/share) after reviewing our estimates. The effect of the lower sales forecasts and larger share-based payments on our DCF/sum-of-the-parts valuation has been partially offset by changes to discount factors to reflect the progression of time.
We have amended our FY17 forecasts to bring them in line with the numbers reported by MaxCyte in its trading update. This has in turn affected our estimates in subsequent years. We have lowered our sales forecasts as shown in Exhibit 1. However, these have had a limited impact on our cash-burn estimates as we have reduced the forecasted cash expenses in similar manner to sales, because the company manages its costs according to the revenues it receives. We have also increased non-cash share-based payments from $0.2m to $0.5m in FY17 and from $0.2m to $1.0m in FY18 to better reflect the increase in granted options.
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