Interim results show encouraging progress

Update | 31 January 2020

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Scancell reported H120 results in line with expectations. The highlight of the period has been the three collaborations struck with the AvidiMab platform. The UK arm of the delayed SCIB1 Phase II combination study in melanoma is now set to start patient recruitment; a new US IND is being actively pursued. Development appears to be regaining momentum; with the Modi-1 Phase I/II clinical trial expected to start during 2020, and a SCIB2 study (run by Cancer Research UK) is planned. The end-October 2019 cash position was £5.8m, with the £3.1m net loss offset by a £3.8m equity raise. We value Scancell, using a risk-adjusted DCF model, at £82.0m (17.2p/share).

Year-end: April 30201820192020E2021E
Sales (£m)
Adj. PBT (£m)(4.9)(6.7)(7.7)(8.8)
Net Income (£m)(4.2)(5.6)(6.4)(7.2)
Adj. EPS (p)(1.3)(1.5)(1.4)(1.6)
Cash (£m)*
EBITDA (£m)(4.9)(6.7)(7.7)(8.8)
Source: Trinity Delta Note: Adjusted numbers exclude exceptionals; * Cash in FY21 includes a capital increase of £10m
  • Three collaborations with AvidiMab The AvidiMab platform consists of specialised monoclonal antibodies that selectively bind to glycans (carbohydrate elements on proteins or lipids). The technology was described in an Update note (September 2019) when the first collaboration was announced. Three agreements in such a short space of time highlights the appeal of the platform to an industry that is actively seeking novel oncology drug targets. Successful evaluations could transform these currently non-exclusive agreements into more meaningful partnerships.
  • Clinical development regaining traction Progress with ImmunoBody was delayed by the FDA’s issues with the Ichor electroporation delivery device (TriGrid 2.0). The UK arm of the Phase II study, SCIB1 in combination with Keytruda in 25 advanced melanoma patients, is ready for patient enrolment. A new IND application for SCIB1 in the US is being actively pursued. SCIB2, using a nanoparticle formulation, is also progressing towards a planned clinical study in solid tumours (conducted by Cancer Research UK). Similarly, the first Moditope product, Modi-1, is also expected to start a Phase I/II trial in multiple solid tumour indications.
  • Interim results in line with expectations Scancell ended H120 with a cash balance of £5.79m (vs £7.58m H119) following an operating loss of £3.09m (vs £3.68m H118). In June 2019, £3.83m (net) was raised in when Vulpes Investment Management acquired 77.6m new shares at 5p a share. Vulpes currently owns 17.3% of the shares and is the largest shareholder.
  • rNPV model suggests a valuation of 17.2p/share We value Scancell based on a rNPV and sum-of-the-parts methodology, with conservative assumptions. The valuation is £82.0m, equivalent to 17.2p a share. There are various likely catalysts over the coming year: including further AvidiMab collaborations, the SCIB1 UK trial being underway, and the first SCIB2 and Moditope studies initiating enrolment.


31 January 2020

Market Cap£30.2m
Enterprise Value£24.4m
Shares in issue465.4m
12 month range3.80-9.25p
Free float67.9%
Primary exchangeAIM London
Other exchangesN/A
Company CodeSCLP.L
Corporate clientYes

Company description

Scancell is a clinical-stage immuno-oncology specialist that is developing three 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.


Lala Gregorek
+44 (0) 20 3637 5043

Franc Gregori
+44 20 3637 5041

Exhibit 1: Summary of financials
Source: Scancell, Trinity Delta  Note: Adjusted numbers exclude exceptionals. The short-term debt in FY21 is indicative of the company’s funding requirement



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