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e-Therapeutics - FY 2018 Results Show Good Progress

e-therapeutics reported results for the full year to Jan 31st 2018; business updates reflect good progress on the main research programs. Cash balance of £9.6mn was slightly higher than we expected, thanks to careful cost management.
 
e-Therapeutics - FY 2018 Results Show Good Progress

As discussed in our initiation note of October 2017, we value e-therapeutics using a SOTP approach.
 
We value their leading programs about £60mn and attribute a value of £50mn to e-therapeutics' NDD platform.
 
Taking into consideration the cash balance at the end of January 2018 and the £1.4mn tax credit due in 1H19 (Feb-Jul of calendar year 2018), we get to a valuation of about £120mn.
 
Applying a 30% discount to account for potential future dilution, we reach our intrinsic value of £83mn, about 4x current market cap.

Full report is available via Capital Network website
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e-Therapeutics plc Timeline

CN Video
March 29 2018

Related Researches

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March 15 2018

A fully integrated specialty pharma company, Midatech Pharma (LON:MTPH) is rapidly progressing the development of three lead R&D programs. They have developed three proprietary drug delivery technologies (Q-Sphera, Gold Nano Particle and Nano Inclusion) to improve and expand the therapeutic potential of validated drug products. At the same time Midatech has built a US commercial unit focused on supportive care products.

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October 04 2017

Avacta’s FY 2017 Preliminary Results: Reagents and therapeutics programs all on track

KEY INVESTOR MESSAGES

  • Avacta’s Affimer® technology is a proprietary alternative to antibodies with key technical and commercial benefits
  • Avacta is building a pipeline of Affimer drugs for immuno-oncology and growing revenues based on a licensing model for Affimer reagents
  • Excellent progress in both parts of the business during the reporting period substantially de-risking the opportunity
  • A pipeline of potential valuable and licensable drugs is being built and the company is targeting first clinical trials in 2019
  • A sum-of-the-parts model now suggests an equity value four times the current market capitalisation

 

RESULTS SUMMARY

On the 4th October, Avacta Group Plc (LON:AVCT) has reported preliminary results for the fiscal year ending July 2017, including a detailed update on the business.

Overall Avacta Group Plc (LON:AVCT) is delivering according to management's guidance and has made significant progress in both the Affimer reagents' business and the Affimer therapeutics programs (please refer to our initiation report of March 2017 for an overview of Avacta's Affimer technology and business strategy).

As regards the Reagents business, Avacta Group Plc (LON:AVCT) announced in April 2017 that, after a trial period, they have granted a leading diagnostic company exclusive rights to specific Affimer reagents. Although financial details weren't disclosed, this was the first time that Avacta signed an agreement of this nature, representing an important inflection point in de-risking the reagents business.

As such we remove any risk adjustment from our valuation of the Affimer reagents business, which we now value approx. £140mil, from about £110mil before this deal was signed.

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January 18 2018
  • Overall Genedrive PLC (LON: GDR) reported a business and financial update for the six months to December 2017 in line with expectations
  • Launch preparation of Genedrive® HCV test with partner Sysmex on track, expect sales to start coming through in CY2018
  • £1.3mln income from the ongoing collaboration with the US DoD, in line with expectations
  • Discussions for the disposal of the Services business are in progress
  • With £4.6mln of cash at end-2017, and given the company's expected cash burn, a capital raise in the next 12 months can't be ruled out
  • Full financial results for the six months to December 2017 to be published on March 20th

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