Increasingly in demand as partner of choice

Update | 20 January 2020

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MaxCyte is consolidating and expanding its position as a leading partner for enabling technologies, particularly in the rapidly growing gene editing and cell therapy space. It made several major advances during 2019. These include delivering revenue growth above market expectations, creation of a separate entity for the CARMA business, and, importantly for future prospects, securing five non-exclusive multi-product licences for varied approaches to gene-editing of cell therapies. These increase the number of clinical/commercial cell therapy deals to eight and associated potential pre-commercial milestones from >$250m a year ago to >$650m now. MaxCyte’s revenue opportunity will be expanded by this substantial new revenue stream, beyond the growing demand for its instruments and disposables.

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, 2019E is not updated for trading statement
  • Inching closer to significant milestone income   Promising disclosures by partners – ie CRISPR Therapeutics/Vertex (CTX001), Precision BioSciences (PBCAR0191), and Editas (EDIT-301) – indicate development progress which may crystallise near-to mid-term milestones. FY19-20 milestone receipts may be lumpy as commercial licences (seven signed in 14 months) take time to mature. However, momentum in clinical/commercial deal flow and recent data suggests that the broad portfolio of licences (>100 cell therapy programmes; >70 licenced for clinical use) should start to deliver a smoother income stream, positively impacting the top and bottom line.
  • CARMA progress on two fronts   MaxCyte’s novel mRNA mediated CAR technology, CARMA, is now a wholly owned subsidiary, which should become self-funded by 2021 via independent investment and new partnerships. Lead CARMA asset, MCY-M11, has completed dosing the second patient cohort (no dose-limiting toxicities or related serious adverse events) and is currently dosing the third cohort in the Phase I relapsed/refractory ovarian cancer and peritoneal mesothelioma study; the fourth cohort is due to start Q120. Preliminary trial data is expected mid-2020.
  • FY19 sales beat market expectations   Accelerating H219 sales growth to $13.2m (+36% vs H218) helped boost FY19 revenues by c 30% y-o-y to $21.6m (FY18: $16.7m). FY19 saw record milestones on top of solid growth across the business. The expanding licence base and development progress bodes well for rising milestone income from FY20 onwards. FY19 cash and equivalents stood at $16.7m.
  • Share price does not reflect MaxCyte’s potential   While we continue to value MaxCyte at £195m or 341p/share, with the core business excluding CARMA worth £111m, we acknowledge the major strides it has made in the past 18 months. Our forecasts are not updated to reflect today’s trading update as we intend to update our financial forecasts and revisit valuation assumptions after prelims in April.


20 January 2020

Market Cap£69.7m
Enterprise Value£56.9m
Shares in issue57.4m
12 month range95.0-197.4p
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
+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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