Scancell

Ground prepared for an important period

Lighthouse | 1 July 2019

Share this note

  • Scancell has made meaningful progress on many fronts during the first six months of 2019, ahead of clinical trials starting in the coming year.
  • The Phase II trial with ImmunoBody SCIB1 in combination with pembrolizumab will start recruiting patients in the UK in the coming weeks. Regulatory and ethical approval was received in April, and clinical centre initiation has since been completed. In the US, Scancell is working with Ichor to address the FDA’s specific questions regarding the TriGrid v2.0 electroporation delivery device for SCIB1, currently the companies are awaiting feedback from the FDA on the IND, which is needed for the US arm of the trial to be initiated.
  • Good Manufacturing Practice (GMP) synthesis of Modi-1 began in May, and progress is being made towards producing the final product for preclinical testing and clinical testing. This leaves Scancell on track to initiate the first clinical trial with a Moditope in the first half of 2020. There were also additional patents granted to protect Modi-1.
  • Scancell and Cancer Research UK have selected a liposomal nanoparticle formulation, which will allow ImmunoBody SCIB2 to be administered using a standard injection in the planned Phase I/II study in solid tumours.
  • The management team was strengthened with the appointment of Dr Samantha Paston as Head of Research and Dr Adrian Parry as Head of Manufacturing. A clinical advisory board to provide strategic advice on the clinical development of Moditope programmes has also been established.
  • Scancell raised £3.9m (gross) in June by issuing 77.6m shares to Vulpes Life Sciences Fund, and Martin Diggle of Vulpes has since joined the Board of Directors.
Trinity Delta view: Scancell has had a productive period, laying foundations ahead of an important period for the company with clinical trials due to be initiated over the coming year. Both of Scancell’s platforms have considerable potential as monotherapy or in combination with checkpoint inhibitors, based on preclinical data and initial clinical data with SCIB1, and the data from the upcoming trials will provide a better indication of their true potential.


We maintain our valuation based on a rNPV and sum-of-the-parts methodology at £82.0m or 17.2p/share.

Lighthouse

1 July 2019

Price7.15p
Market Cap£33.3m
Primary exchangeAIM London
SectorHealthcare
Company CodeSCLP
Corporate clientYes

Company description

Scancell is a clinical-stage immuno-oncology specialist that is developing two innovative and flexible therapeutic vaccine platforms. ImmunoBody and Moditope induce high avidity cytotoxic CD8 and CD4 responses, respectively, with the potential to treat various cancers.

Analysts

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

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

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 publically 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 2019 Trinity Delta Research Limited. All rights reserved.