Research Tree provides access to ongoing research coverage, media content and regulatory news on BIOSENSORS INTERNATIONAL GRO.
We currently have 0 research reports from 0
Whilst headline H1 revenue growth of 23% is eye-catching, for us the most comforting factor is the robust performance of the underlying business in the most challenging of circumstances. Sales of the Primestore MTM sample collection device contributed £6.5m, meaning the core business was -8% in the period, well ahead of internal expectations. Highlights include strong performances from BhB, DiaSpect Tm and the Clinical Chemistry portfolio, all of which grew revenues in the period. Whilst there were challenges in certain geographies, this is a very creditable performance and testament to the strength and defensiveness of the core business. We make no further change to our forecasts at this stage, having upgraded regularly in recent months. Given we have only included firm orders for Primestore up until the end of this month, we remain confident further upgrades are likely for the rest of this year and into next. In the meantime, latent growth potential in the core business is building with, inter alia, Chinese approval of Quo-Test, strong momentum with DiaSpect Tm, the Trellus health investment and a variety of contract manufacturing orders in the Central Lab/Life Sciences segment adding to the medium term growth outlook. Given the continuing scope for upgrades, we continue to see upside potential in the shares – EKF remains one of our Best Ideas for 2020 (up 66% YTD).
Companies: EKF Diagnostics Holdings Plc
Futura Medical’s H120 results confirm progress is maintained as expected. The key developments with MED3000, its novel treatment for erectile dysfunction (ED), suggest that European OTC approval is likely during 2021 and in the US, pending a small six-month trial to show longer term efficacy, is expected in 2022. The format of this supplementary trial will be discussed at the next FDA meeting, expected before end-October. Current funds of £2.62m (at end-June 2020) provide a cash runway to Q221, although this does not include the costs of the US study. We value Futura Medical at £153.8m, equivalent to 60.9p a share.
Companies: Futura Medical Plc
Interim results to 30 June largely reflected the licensing income from ASK Pharm in China. Revenues were £8.9m, with royalties of c.£0.2m despite disruptions due to COVID-19 and £8.7m of milestone payments. This resulted in an adjusted net profit of £4.4m (vs a loss of £3.4m in H1 2019). A net cash inflow of £2.4m in the period resulted in cash at 30 June of £6.5m, providing a cash runway to Q1 2021. The figure excludes potential significant up-front payments and milestones for the US, for which a licensing deal is still expected. An order to its contract manufacturer for US launch stocks for delivery by year-end should provide comfort despite the understandable shortage of information pertaining to licensing discussions. We leave our forecasts unchanged (excludes potential upfront payments from US licensing deal) and reiterate our 350p target price.
Companies: Shield Therapeutics Plc
The COVID-19 pandemic has had a significant impact globally in many areas. While primarily a health issue, it has had wide-ranging implications for stock markets, which have now rallied after the plunge in share prices in mid-March when the full severity of the emerging pandemic became more widely appreciated. Nonetheless, the FTSE 100 Index remains almost 20% off its late February 2020 figure.
Companies: AVO ARBB ARIX CLIG DNL GDR ICGT NSF PCA PIN PXC PHP RECI STX SCE TRX SHED VTA YEW
Having navigated the challenge of running a clinical trial during a global pandemic, Destiny has blossomed in mid-2020. It is on track to announce topline Phase 2b results for XF-73 in the prevention of post-surgical infections in Q1 2021. It has also expanded its pipeline to span the two most contemporary issues in biotech – the microbiome and the prevention of COVID-19 infections. Destiny’s interim financials demonstrate its continued prudent financial management that underpins these achievements against the backdrop of Covid-19.
Companies: Destiny Pharma Plc
Avacta (AVCT.L): Adeptrix COVID-19 Diagnostic Test update | Diaceutics (DXRX.L): New contract win
Companies: Avacta Group Plc Diaceutics Plc
The virtual research webinar recorded last week and published online today was an excellent example of the capability of the MicroRx platform. The in-depth overview of the MicroRx platform and pre-clinical research highlights the strong scientific work ongoing in the background that drives the discovery of 4D pharma’s live biotherapeutic (LBP) candidates and characterises their mechanism of action. There was no new clinical data released related to any of the clinical programmes, instead focus of the webinar was on the underlying mechanism of action for MRx0518 and two pre-clinical candidates, MRx0029 and MRx0005, for neurodegenerative diseases. We felt it was encouraging to observe how the platform can be leveraged in other therapy areas within and beyond oncology, and note that future platform partnerships are possible in other therapy areas, such as autoimmune and neurology.
Companies: 4D Pharma Plc
Redx Pharma (REDX.L): Research agreement with Jazz Pharma | Amryt Pharma (AMYT.L): Positive top line results from Epidermolysis Bullosa trial
Companies: Redx Pharma Plc Amryt Pharma Plc
Interim results to 30 June reflected the increase in R&D expenses commensurate with the continued enrolment into its Phase 2b study of XF-73. The statutory net loss was £2.4m (vs.£2.1m) with adjusted net loss also £2.4m (vs. £2.0m), driven by £2.3m (+35%) of R&D. Period-end cash was £5.6m (vs. £7.5m at 31 December 2019). Having agreed a protocol amendment with the FDA, which revised the XF-73 nasal study size to 125 patients without comprising the statistical quality, and having brought on stream more clinical centres to Europe, we are increasingly confident that the study will complete in Q4 2020, allowing for presentation of headline results in Q1 2021. The value of XF-73 at this point, given that Destiny should have a Phase III-ready asset with FDA Fast Track designation, is expected to rise substantially. XF-73 could potentially be the first approved antimicrobial for the prevention of S. aureus infections in high-risk surgery patients, for which there is a clear unmet medical need in an estimated $1bn+ addressable market. We leave forecasts unchanged and reiterate our 250p target price.
The FY 2019 results, as a guide to the future performance of the business, are largely irrelevant given the transfer of COPD therapeutic assets to AstraZeneca in May 2020 and exceptional impairment costs incurred. However, the remaining NIOX business (FeNO diagnostic test for asthma) provides an attractive investment opportunity post the COVID pandemic. With monthly cash burn of c.£1m during the key lockdown months of April/May and an expected, albeit declining, burn in the short term, early signs of recovery offer encouragement beyond this period of disruption, after which we expect a return to strong revenue growth in the medium to long term. Assuming that NIOX can return to pre-pandemic levels, this business can arguably support a valuation in the 25-60p range, based on comparable multiples. Our forecasts and target price remain under review.
Companies: Circassia Group Plc
EKF has secured its first order in the UK for the Primestore MTM sample collection device, worth £3m over the next 7 weeks. The purchaser is a partner from the private sector, with the device being used in a Covid-19 testing programme for UK staff. With these increasing orders, EKF has expanded its production line in Cardiff and now has capacity for 25,000 sample collection tubes per day. In addition, the production line in Germany is now up and running. We increase our FY20 revenue estimates by a further £3m and EBITDA by £2m. Given the nature of the device, which is agnostic over which molecular test is used, we expect demand to continue at elevated levels for the duration of the pandemic and continue to see further upside potential to our already materially upgraded estimates. EKF remains one of our best Ideas for 2020.
EKF has made a $5m seed investment for a 31% stake in Trellus Health, which has licensed a novel digital health platform for the management of Inflammatory Bowel Disease and associated conditions from Mount Sinai Health System. EKF has a partnership with Mt Sinai to commercialise novel technologies, following the successful spin out and IPO of Renalytix in 2018. We make no change to our forecasts at this stage. If successful, we believe Trellus could deliver substantial returns for EKF shareholders over the next few years.
Redx Pharma is a UK-based clinical stage drug discovery company that specialises in developing highly specific small molecules based on its proven medicinal chemistry expertise and research platform. These are either “best-in-class” or “first-in-class” and target existing unmet needs in large oncology and fibrosis indications. A driven management team is implementing a focussed and ambitious strategy that should be transformative for the business over the medium term. The approach has been validated by a series of out-licensing and partnering deals. Knowledgeable and supportive shareholders have rebuilt the balance sheet, but further funding is, in our view, required to capitalise on the existing opportunities. Our valuation, based on conservative assumptions, is £296m, equivalent to 152p/share, and 92p fully diluted.
Companies: Redx Pharma Plc
N4 Pharma (N4P.L): COVID-19 research project update | Silence Therapeutics (SLN.L): Half-year results
Companies: N4 Pharma Plc Silence Therapeutics Plc
Shield Therapeutics’ (STX’s) interim results highlight the progress made year to date. Re-analysis of the Feraccru/Accrufer AEGIS-H2H data show it is a credible alternative to IV iron therapy for iron deficiency anaemia (IDA) in the long term. With the product out-licensed in China to partner ASK Pharm, all eyes remain on the announcement of a US commercial partner (expected this year). Royalties received from H120 sales of the product (UK and Germany) by partner Norgine are slowly building, but pricing and reimbursement discussions resuming in Europe could lead to ongoing rollouts in key countries (France, Spain and Italy) in 2021. STX’s cash runway extends into Q121, an upfront licensing payment from a US deal would ameliorate the need for further capital. We value Shield at £379.1m.