Refining its focus

Update | 24 July 2017

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e-Therapeutics’s new CEO, Dr Raymond Barlow, has completed a strategic review and is refining the company’s approach as it looks to commercialise its leading position in the field of network-driven drug discovery. It is focussing its resources on the two immuno-oncology drug discovery programmes, and on advancing the discovery platform. The potential of the company’s discovery engine was reviewed and subsequently endorsed by a panel of independent experts, which bodes well for the company as it looks to form drug discovery collaborations. Our DCF-based valuation remains at £53.8m or 20.4p/share.

Year-end: December201620172018E2019E
Sales (£m)
Adj. PBT (£m)(11.3)(13.4)(7.8)(6.1)
Net Income (£m)(9.3)(13.6)(6.1)(4.9)
Adj. EPS (p)(3.3)(3.9)(2.3)(1.8)
Cash (£m)24.814.08.33.8
EBITDA (£m)(11.5)(13.5)(7.9)(6.1)
Source: Trinity Delta Note: Adjusted numbers exclude exceptionals.
  • Independent panel validates the company’s approach As part of the strategic review, e-Therapeutics sought the views of industry experts from big pharma and successful biotechs. Their findings support the view that e-Therapeutics’s network-driven drug discovery platform is highly productive and could be used to create new and potentially better drugs. The engine has been used successfully in 12 discovery programmes in various disease areas, such as oncology, immunology and neuro-degeneration.
  • R&D focused on platform and two immuno-oncology programmes e-Therapeutics will continue to invest in its discovery engine to improve the interface, and extend its network analysis in gene regulation and into disease segmentation using genomics. The company will also advance the two immuno-oncology programmes (oral checkpoint signalling modulation and tryptophan catabolism) and has the capacity to initiate new internal projects. It will look to partner the hedgehog and influenza programmes and publish data on the remainder to raise interest in its drug discovery engine.
  • Formation of collaborations is the key goal e-Therapeutics’s main objective remains the formation of discovery partnerships, which would provide clear external validation of the platform and important revenues. To support these efforts, e-Therapeutics will be conducting feasibility projects in triple negative breast cancer, tumour microenvironment and other complex diseases where there is a high-unmet clinical and commercial need.
  • Valuation maintained at 20.4p/share We have made no changes to our estimates and our DCF-based valuation remains £53.8m, equivalent to 20.4p/share. It should be remembered that valuing any such early-stage business is never straightforward and this is more subjective than usual since we cannot employ an rNPV model.


24 July 2017

Price (p)12.1
Market Cap (£m)32.5
Enterprise Value (£m)20.4
Shares in issue268.4m
12 month range (p)7.4-13.5
Free float74%
Primary exchangeAIM London
Other exchangesNA
Company CodeETX
Corporate clientYes

Company description

e-Therapeutics is a drug discovery company with a proprietary network-driven drug discovery (NDD) platform. Following management changes and a strategic review, the focus is on its immuno-oncology projects, the next generation of the platform, and on securing industry collaborations and partners.


Mick Cooper PhD
+44 (0) 20 3637 5042

Franc Gregori
+44 (0) 20 3637 5041

Exhibit 1: Summary of financials

Source: e-Therapeutics, Trinity Delta Note: Adjusted numbers exclude exceptionals.  


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