Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on 4SC AG. We currently have 6 research reports from 1 professional analysts.
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Positive detailed analysis of Phase II trial data
06 Oct 16
4SC has announced positive Phase II results from a more detailed analysis of the HCC Yakult Phase II trial data, which we believe could lead to further clinical development. It has also recently announced the sale of its immunology portfolio (Vidofludimus and a cytokine inhibitor), which further streamlines the company’s focus further on its core business of epigenetics while retaining potential upside (via milestones and royalties). We increase our rNPV to €117m from €110m to reflect the increase in potential of resminostat development in Japan.
Core focus on track despite disappointing results
13 Jun 16
4SC has announced that its partner Yakult Honsha did not reach the primary endpoint in its Asian liver cancer trial with all-comer patients. As a result, it will not be progressing resminostat to a pivotal study. These results do not affect 4SC’s core focus on the launch of its pivotal EU Phase II resminostat study in CTCL and progression of its earlier pipeline. A positive partnership with Link Health (4SC-205) and data at ASCO (4SC-202) underline this. Removal of the Japan HCC contribution reduces our rNPV to €104m (vs €145m).
Increased focus on core business
19 May 16
4SC’s Q1 results highlight an increased focus on its core business of epigenetic research and commercialisation, resulting from the sale of the operational assets (for €650k in proceeds) of its discovery and collaborative segment, 4SC Discovery. 2016 is an important year for 4SC with expected newsflow from its clinical pipeline including the launch of its potentially pivotal EU Phase II study with resminostat in Cutaneous T-cell lymphoma (CTCL) and expected Phase II Japanese trial data in HCC and NSCLC (from partner Yakult).
Important progression of clinical pipeline in 2016
01 Apr 16
2016 is an important year for 4SC as it will launch its potentially pivotal Phase II study with resminostat, an epigenetic cancer drug, in CTCL. In addition, we expect partner Yakult to report Phase II Japanese trial data in HCC and NSCLC. Alongside its primary focus on resminostat for CTCL, 4SC is actively pursuing partnerships for its earlier stage assets, 4SC-202 and 4SC-205, which would enable both candidates to move into Phase II. We maintain our rNPV at €143m, with near-term potential catalysts.
Pioneering epigenetics in cancer
21 Mar 16
The 4SC oncology strategy is primarily driven by epigenetics, a distinct and effective mechanism against many cancers. A potentially pivotal Phase II study with resminostat, an epigenetic cancer drug, in CTCL is due to start in H116, while partner Yakult should reveal Phase II Japanese trial data in HCC and NSCLC in 2016. Financings and/or collaborations may allow 4SC-202 and 4SC-205 to move into Phase II. We have made adjustments to our model to include a specific value for 4SC-202. Our rNPV rises slightly to €143m (€7.55 per share), with near-term potential upside on initiation of the Phase II CTCL study.
Resminostat refocused cancer strategy begins
06 Oct 15
4SC’s recent €29m capital increase has provided vital funds to advance the epigenetic lead candidate resminostat. Focus is now on an EU Phase II trial in CTCL, rather than liver cancer (HCC). HCC would have been more costly and time-consuming compared with CTCL. Clinical data in 2016 in HCC and NSCLC from the Yakult collaboration will allow 4SC to revisit, with less risk, the prospects for resminostat in other cancers ex-Asia. Combination of resminostat with new immunotherapies is also being explored. Our valuation increases from €115m to €141m to reflect the cash increase and fresh development plans for resminostat in CTCL (EU).
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
Panmure Morning Note 02-12-16
02 Dec 16
We expect CareTech to report FY results to September on 8th December. A positive trading update in October indicated that performance for the year was in line with market expectations therefore we are focusing on the outlook. We expect a confident statement since the end of 2016 showed positive trends across fee rates, expansion in places and occupancy. We believe CareTech is well positioned for further expansion, and remains at an attractive valuation. We retain our BUY and 380p price target.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
N+1 Singer - Morning Song 06-12-2016
06 Dec 16
With FY16 volume and revenue already disclosed in the pre-close, the focus in today’s prelims is on PBT (£100.3m versus our £101m) and EPS (96.8p versus our 95.4p). No special dividend triggered this year (none forecast) and DPS is held at 46.8p (N1SE: 48.0p). On end markets, recent commentary is reiterated – the core business is growing, whilst consumer electronics will be subdued in the current year (competitive capacity from Solvay). On currency, there will be a material benefit in the current year (a little more than the £14m to £15m previously indicated), and a further tailwind next year if current rates are maintained (quantum TBC). There is also an investment of £10m today in a minority interest in Magma Global, Victrex’ oil and gas mega programme partner. Although the share price is now close to our TP of 1730p, we feel that there is enough in today’s announcement to retain a positive stance on medium term opportunities with strong cashflow and a special dividend potentially to look forward to in the current year.
Panmure Morning Note 05-12-16
05 Dec 16
This week will see Chi-Med present data on both fruquintinib and epitinib at the 17th World Conference on Lung Cancer, concerning two proof-of-concept trials in non-small cell lung cancer (NSCLC). This morning, the poster presentation ‘A Phase I Study of Epitinib To Evaluate Efficacy And Safety In EGFR Mutation Positive (EGFRm+) NSCLC Patients With Brain Metastasis’ is available for investors to view on Chi-Med’s website.