Interim results show progress being maintained

Update | 31 January 2019

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Scancell has reported H119 results in line with expectations. The cash position was £7.6m, with the net loss of £3.24m compensated for by the two equity raises, totalling £14.9m, over the past year. Development appears to be progressing well, with important clinical programmes expected to start patient recruitment during the next two quarters. Additionally, in January 2019 the management team has been strengthened by two important new hires. As detailed in our Initiation note, we value the company, using a risk-adjusted DCF model, at £82.0m, or 21.1p a share.

Year-end: April 30201720182019E2020E
Sales (£m)
Adj. PBT (£m)(4.5)(4.9)(8.6)(7.6)
Net Income (£m)(3.5)(4.2)(7.1)(6.4)
Adj. EPS (p)(1.4)(1.3)(1.8)(1.6)
Cash (£m)2.710.34.310.0*
EBITDA (£m)(4.5)(4.9)(8.6)(7.6)
Source: Trinity Delta Note: Adjusted numbers exclude exceptionals; * Cash in FY20 includes a capital increase of £12m
  • Interim results in line with expectations Scancell ended H119 with a cash balance of £7.6m (vs £10.3m in April 18) following a net loss of £3.24m (vs £2.02m H118). This follows the £8.0m (net) raised in May 2018, which includes £1.1m from an open offer, and £6.9m from the placement at the end of FY18. The cash burn is expected to rise as Scancell enters the clinical stages, with our forecast detailed in our Initiation note of November 2018.
  • Clinical trials expected to begin shortly Two trials with ImmunoBody are planned; the first with SCIB1 in combination with Keytruda in melanoma patients is anticipated to start in H119, and the second with SCIB2 in NSCLC will be conducted by CRUK. The SCIB1 study is awaiting FDA clearance of the Ichor Medical Systems’ TriGrid 2.0 electroporation delivery system; a newer iteration of the device employed in earlier clinical work that requires additional oversight. The first Moditope product, Modi-1, is also expected to enter the clinic in CY19 in multiple solid tumour indications.
  • Bolstering the executive team Two key appointments were announced in January 2019, with Dr Samantha Paston appointed as Head of Research and Dr Adrian Parry appointed as Head of Manufacturing. We view the hires of such seasoned and experienced people as useful validation that the development programmes are gaining traction and progressing as expected.
  • rNPV model suggests a valuation of 21.1p/share We value Scancell based on a rNPV and sum-of-the-parts methodology, with conservative assumptions. Based on our model we value Scancell today at £82.0m, equivalent to 21.1p a share. There are various catalysts over the coming year with a Phase II trial with ImmunoBody SCIB1 and the first clinical study with a Moditope due to be initiated in 2019.


31 January 2019

Market Cap£26.8m
Enterprise Value£19.2m
Shares in issue387.8m
12 month range7.60-19.47p
Free float95%
Primary exchangeAIM London
Other exchangesN/A
Company CodeSCLP.L
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.


Mick Cooper PhD
+44 (0) 20 3637 5042

Lala Gregorek
+44 20 3637 5043


Exhibit 1: Summary of financials
Source: Scancell, Trinity Delta Note: Adjusted numbers exclude exceptionals.


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