Reaping continued returns from R&D

Update | 19 September 2017

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MaxCyte made significant progress in making its flow electroporation technology the preferred transfection methodology for CRISPR therapies in H117. At the same time, MaxCyte has increased its sales and marketing effort, supported by the £20m capital raise in April. So, we forecast that MaxCyte’s sales growth will be 26.1% sales growth in FY17, compared to 13.6% in H117. During the rest of the year, attention to MaxCyte’s CARMA platform (proprietary CAR therapy) should also increase, as it aims to file its IND in the US in H217 and the imminent launch of the first CAR-T therapy. We maintain our valuation at £178m, or 351p/share.

 Year-end: December201520162017E2018E
Sales ($m)9.312.315.518.5
Adj. PBT ($m)(1.4)(3.3)(11.1)(13.6)
Net Income ($m)(3.5)(3.9)(11.1)(13.6)
Adj. EPS (c)(186.4)(10.0)(22.7)(26.7)
Cash ($m)2.411.725.012.4
EBITDA ($m)(0.7)(2.6)(10.4)(12.8)
Source: Trinity Delta Note: Adjusted numbers exclude share-based payments and exceptionals.
  • Growth in partnerships point to a strong H217 During H117, the number of cell therapy partnered programmes using MaxCyte’s technology rose by about five to over 45, and it signed its first commercial license agreement covering CRISPR, with CRISPR Therapeutics/Bayer (Casebia). Scientific publications also highlighted the strength of MaxCyte’s flow electroporation capabilities for CRISPR therapies. This progress, combined with the normal seasonality and extra investment in sales and marketing (up 49%), means that we expect sales growth accelerate from 13.5% in H117 to 36.2% in H217.
  • CARMA IND filing on track for H217 MaxCyte has confirmed that it still expects to file an IND for its first CARMA product, which targets mesothelin, in H217. The Phase Ia/b trial in ovarian cancer is expected to start in H118. Wisely, given the serious adverse events as well as the impressive efficacy of CAR-T therapies to date, MaxCyte is ensuring that the first-in-man study with a CARMA product is properly planned.
  • Advances with CAR-T validate potential of CARMA platform The recent approval of Novartis’ CAR-T therapy, Kymriah, and the acquisition of Kite Pharma by Gilead for $12bn in cash provide further confirmation of the strong scientific and commercial rationale, respectively, of CAR-T therapies. It is worth noting that CARMA has the potential to address key challenges that currently face CAR-T therapies, including cost and safety issues.
  • Valuation unchanged at 351p per share Our valuation of MaxCyte remains at £178m, or 351p per share. We have also made no material changes to our estimates, although we have transferred some forecast spending from R&D to sales and marketing investment; and we introduce our FY19 forecast.


19 September 2017

Market Cap£126m
Enterprise Value£101m
Shares in issue50.8m
12 month range83.0p-305p
Free float70%
Primary exchangeAIM London
Other exchangesNA
Company CodeMXCT.L / MXCR.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 PhD
+44 (0) 20 3637 5042

Franc Gregori
+44 20 3637 5041

Exhibit 1: Summary of financials

Source: MaxCyte, Trinity Delta Note: Adjusted numbers exclude exceptionals. No commercial licensing deals are included in our forecasts  


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