MaxCyte

FY19 results crown a breakthrough year

Lighthouse | 21 April 2020

Share this note

  • MaxCyte has achieved a 29.7% increase in FY19 revenues to $21.6m (FY18: $16.7m), driven by a +36% increase in H219 to $13.2m. The five-year revenue CAGR is now 25%. Importantly, the better than expected results saw underlying EBITDA (ex-CARMA) post a maiden profit of $1.3m. The CARMA investment of $11.2m (up from $6.5m in FY18) meant the Group loss widened to $12.9m (FY18: $8.9m).
  • The operating cash outflow, including CARMA spend, was $8.8m (against $10.5m for FY18). Cash and equivalents at end-December 2019 were $16.7m, from $14.4m, boosted by a $10m equity raise in March 2019.
  • FY19 saw a further five clinical/commercial licenses signed, which together with the Allogene Therapeutics collaboration in March 2020, brings the total to nine. The result is that the value of the potential pre-commercial milestones rises from >$250m a year ago to >$800m now.
  • There are now more than 100 cell therapy programmes licensed, of which 70+ are for clinical use. To date, MaxCyte’s technology has enabled more than 15 clinical cell therapy programmes. Last year’s launch of the upgraded ExPERT instrument range, with enhanced utility and functionality, has been well received. All the top ten pharmaceutical companies are now clients, as are the leading players in the cell therapy and gene therapy field.
  • The Phase I dose-escalation trial of MCY-M11 is progressing well; the fourth dosing cohort started in March 2020. This is the lead programme using CARMA, MaxCyte’s novel mRNA mediated CAR technology, and addresses relapsed/refractory ovarian cancer and peritoneal mesothelioma. CARMA is now a wholly owned subsidiary and is planned to become self-funded by 2021. Locust Walk, a specialist life sciences transaction firm, has been appointed to find independent financing and/or partners to achieve this goal. The potential impact of the COVID-19 pandemic may affect timings.
  • COVID-19 may also impact the Phase I timings for the CARMA clinical programmes as typically such early studies require access to intensive care facilities in case of unexpected events. Other limitations, as with most businesses, centre on marketing and distribution activities.

Trinity Delta view: MaxCyte is clearly consolidating and expanding its position as the leading partner for non-viral cell transfection, a key enabling technology, in the rapidly growing fields of gene editing and cell therapy. These new therapies are truly transformative, and MaxCyte’s flow electroporation platforms lie at the heart of most of these next-generation treatments. The FY19 results confirm our view that MaxCyte is well placed to benefit from the clinical advances being achieved, with the magnitude of the opportunities set to become increasingly visible over the next 18 months. We aim to update our forecasts and valuation to reflect these results as soon as practicable. For context, our prior valuation was £195m, or 341p/share, with the core business excluding CARMA worth £111m.

Lighthouse

21 April 2020

Price135.0p
Market Cap£77.5m
Primary exchangeAIM London
SectorHealthcare
Company Code
 
MXCT
MXCS
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

Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043

Franc Gregori
fgregori@trinitydelta.org
+44 (0) 20 3637 5041

Disclaimer

Trinity Delta Research Limited (“TDRL”; firm reference number: 725161), which trades as Trinity Delta, is an appointed representative of Equity Development Limited (“ED”). The contents of this report, which has been prepared by and is the sole responsibility of TDRL, have been reviewed, but not independently verified, by ED which is authorised and regulated by the FCA, and whose reference number is 185325.

ED is acting for TDRL and not for any other person and will not be responsible for providing the protections provided to clients of TDRL nor for advising any other person in connection with the contents of this report and, except to the extent required by applicable law, including the rules of the FCA, owes no duty of care to any other such person. No reliance may be placed on ED for advice or recommendations with respect to the contents of this report and, to the extent it may do so under applicable law, ED makes no representation or warranty to the persons reading this report with regards to the information contained in it.

In the preparation of this report TDRL has used publicly available sources and taken reasonable efforts to ensure that the facts stated herein are clear, fair and not misleading, but make no guarantee or warranty as to the accuracy or completeness of the information or opinions contained herein, nor to provide updates should fresh information become available or opinions change.

Any person who is not a relevant person under section of Section 21(2) of the Financial Services & Markets Act 2000 of the United Kingdom should not act or rely on this document or any of its contents. Research on its client companies produced by TDRL is normally commissioned and paid for by those companies themselves (‘issuer financed research’) and as such is not deemed to be independent, as defined by the FCA, but is ‘objective’ in that the authors are stating their own opinions. The report should be considered a marketing communication for purposes of the FCA rules. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. TDRL does not hold any positions in any of the companies mentioned in the report, although directors, employees or consultants of TDRL may hold positions in the companies mentioned. TDRL does impose restrictions on personal dealings. TDRL might also provide services to companies mentioned or solicit business from them.

This report is being provided to relevant persons to provide background information about the subject matter of the note. This document does not constitute, nor form part of, and should not be construed as, any offer for sale or purchase of (or solicitation of, or invitation to make any offer to buy or sell) any Securities (which may rise and fall in value). Nor shall it, or any part of it, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information that we provide is not intended to be, and should not in any manner whatsoever be, construed as personalised advice. Self-certification by investors can be completed free of charge at www.fisma.org. TDRL, its affiliates, officers, directors and employees, and ED will not be liable for any loss or damage arising from any use of this document, to the maximum extent that the law permits.

Copyright 2020 Trinity Delta Research Limited. All rights reserved.