Private placement to support randomised Phase II trials

Update | 19 June 2019

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BerGenBio has raised NOK74.2m in a private placement to advance its clinical pipeline, as it plans the late stage Phase II studies in acute myeloid leukaemia (AML) and non-small cell lung cancer (NSCLC) with bemcentinib. Promising efficacy signals have been seen during the current Phase II study in AML as a monotherapy, and the latest data continues to suggest that bemcentinib enhances the activity of LDAC chemotherapy. Similarly, the current Phase II trial in NSCLC with bemcentinib in combination with pembrolizumab (Merck’s Keytruda) suggests the two therapies act synergistically. Following the capital raise, we value BerGenBio at NOK3.21bn (NOK53.13/share).

Year-end: December 31201720182019E2020E
Sales (NOKm)0.02.3 0.00.0
Adj. PBT (NOKm)(182.2) (197.7) (240.1) (250.2)
Net Income (NOKm)(182.2) (197.7) (240.1) (250.2)
Adj. EPS (NOK)(4.0) (3.6) (4.1) (4.1)
Cash (NOKm)370.4 360.4 184.7 36.7*
EBITDA (NOKm)(183.5) (194.3) (239.3) (250.7)
Source: Trinity Delta; Note: *2020E cash includes a NOK100m capital raise. Adjusted numbers exclude exceptionals.
  • Private placement raised NOK74m BerGenBio placed 5.50m shares at NOK13.50 per share to raise gross proceeds of NOK74.2m. The extra capital raised will fund primarily the randomised Phase II trials with bemcentinib in NSCLC and AML. We estimate the net amount raised was c NOK70m, and extends the BerGenBio’s cash runway into H220, although we will have a clearer view of the company’s cash burn rate once the timings and designs of the planned Phase II studies are disclosed.
  • Latest Phase II AML data published at EHA BerGenBio reported updated data from the BGBC003 trial at the European Hematology Association conference on 14 June. In the LDAC (low dose cytarabine) arm, the ORR from the 14 evaluable patients was 43% (6/14), with 4 CR/CRi (complete remission with incomplete blood count recovery) and 2 PR (partial remission), which compares very favourably with historic data for LDAC monotherapy. The relapse free survival data is reported as 7.9 months currently in CR/CRi patients, but we expect this to increase further as the data is immature and patients are still on treatment.
  • Bemcentinib’s greatest potential is in NSCLC Bemcentinib’s appears to have the largest commercial potential in NSCLC in combination with immuno-oncology (IO) This opinion was supported by the preliminary data presented recently at ASCO, which provided further evidence suggesting that bemcentinib can significantly increase the proportion of patients responding to PD1/PD-L1 therapy if their tumours express AXL, and increase median overall survival (c 50% of NSCLC patients, see note dated 5 June). Further data from the current Phase II data will be reported over the coming year, including from Cohort B in IO relapse patients.
  • Revised valuation of NOK53.13/share (NOK3.21bn or $378m)  We have updated our estimates and valuation to reflect the private placement. We now value BerGenBio at NOK53.13/share (NOK3.21bn or $378m) having previously valued it at NOK57.45/share (NOK3.14bn).


19 June 2019

Market CapNOK805m
Enterprise ValueNOK429m
Shares in issue60.4m
12-month rangeNOK12.50-43.40
Free float60.8%
Primary exchangeOslo
Other exchangesN/A
Company CodeBGBIO
Corporate clientYes

Company description

BerGenBio is a clinical-stage, biopharmaceutical company based in Bergen, Norway and Oxford, UK. It is developing innovative therapies for aggressive cancers by way of inhibiting the AXL signalling pathway. The lead oncology compound, bemcentinib, is in multiple Phase II trials.


Mick Cooper PhD
+44 (0) 20 3637 5042

Lala Gregorek
+44 (0) 20 3637 5043

Exhibit 1: Summary of financials
Source: Company, Trinity Delta  Note: The short-term debt in FY20 is indicative of the company’s funding requirement



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