SkinBioTherapeutics is making strong progress towards the first commercialisation and associated revenues from its skin microbiome technology platform. The company has partnered its two lead programmes and is in discussions to partner its third commercial channel. We believe SkinBioTherapeutics could report its first revenues during FY22E and given the company's relatively low cost base, could achieve operating breakeven in the near-term. To support its progress to commercialising its products, the company has announced it has conditionally raised £4m (gross) via an equity raise. We maintain our Buy recommendation.
Companies: SkinBioTherapeutics Plc
SkinBioTherapeutics has provided a development update for its two lead commercial programmes, demonstrating strong progress towards accessing two significant market opportunities, cosmetic ingredients and psoriasis. Sederma, the division of Croda which is developing SkinBiotix, has completed initial manufacturing development and has progressed to scale up validation. Following completion of the AxisBiotix formulation development ahead of schedule, SBTX has established a protocol for a self-managed food supplement trial, designed to mitigate the restriction associated with the COVID-19 pandemic. The trial is anticipated to commence in early 2021. We maintain our Buy recommendation.
SkinBioTherapeutics has developed a proprietary technology platform designed to harness the human microbiome to improve skin health and access the emerging market for skin health probiotic products. Importantly the company is transitioning from a development business to a commercial operation, demonstrated by two recent, validating third party agreements. The company is implementing a strategy designed to target a range of significant market opportunities, offering the potential for near term revenues and longer term, higher value opportunities. We initiate coverage of SkinBioTherapeutics with a Buy recommendation.
SkinBioTherapeutics (SBTX.L): Interim results
SkinBioTherapeutics (SBTX.L): Second commercial agreement
Inspecs, a UK designer, manufacturer and distributor of eyewear frames to global retail chains announces its intention to IPO onto AIM raising £94m with a market cap of £138m. Admission expected 27th February. FY Dec 2018 numbers show revenue of $57m and underlying EBITDA of $11m
Companies: SO4 TRP ECHO OPM EBQ SBTX CGH PTRO PEN
SkinBioTherapeutics (SBTX; the Group) is a microbiome specialist focused on the development of microbiome-based technologies for skin health. Since IPO on AIM in 2017, the Company has made significant progress into the commercialisation of SkinBiotix®, the Group’s proprietary probiotic cosmetic technology. In November 2019, SBTX struck a commercial deal with the multinational specialty chemicals group, Croda plc (CRDA.L). Croda intends to develop a cosmetic ingredient based on SkinBiotix® technology with SBTX to receive tiered-royalties on any product developed as part of the agreement. This agreement marks the Group’s first commercial deal for SkinBiotix® and is both a validation of the Group’s commercial strategy and of the underlying science and data generated on the technology over the past two years. Alongside the cosmetic segment, SBTX plans to rollout multiple microbiome products in a stepwise approach whereby, along with a new product offering, each ‘step’ offers a de-risking event for the next level, either through a clinical trial or a partnership agreement. This strategy enables SBTX to diversify the product offering whilst de-risking any future developments.
SkinBioTherapeutics: Full year results for 2019 | Allergy Therapeutics plc (AGY.L): phase III study update
Companies: SkinBioTherapeutics Plc (SBTX:LON)Allergy Therapeutics plc (AGY:LON)
SkinBioTherapeutics (SBTX.L): Commercial & Manufacturing Agreement
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Novacyt Initiation of Coverage: Through the rapid commercialisation of a COVID-19 test, Novacyt has transformed its financial position. Demand for the Group's COVID-19 test and other COVID-19 reagents are expected to make up the majority of revenue generated until FY22E, whereupon the Group is looking to drive long-term growth across its business via the development of high-margin clinical diagnostics and establish itself as a leader in infectious disease testing.
Companies: Novacyt SAS
Despite challenges in the early part of the period, Yourgene has delivered a robust H1 performance and enters H2 with strong momentum on a number of fronts. Key strategic milestones were achieved in the period, including the launch of the flagship IONA Nx NIPT product on the Illumina platform in September and the acquisition of Coastal Genomics and associated fundraise in August. Both are supportive of FY estimates, as are the launch of Yourgene's Covid services and products such as DPYD, which are generating strong momentum. We make no change to our forecasts at this stage.
Companies: Yourgene Health Plc
A positive trading update from SDI Group justifies upgrading FY 2021 sales and adjusted EPS forecasts by 10% and 15%, respectively, broadly to the levels we were forecasting before the COVID-19 pandemic struck in early 2020. Contract wins for MPB Industries (flowmeters for ventilators) and Atik Cameras (supplying cameras for PCR DNA amplifiers) are expected to be fulfilled within FY 2021 and consequently we leave FY 2022 forecasts unchanged. We are encouraged by the news that the other businesses within the group are seeing order patterns returning towards normality. We upgrade our target price to 110p, at which level the stock trades on multiples that compare favourably to both the market and peer comparators. Our forecasts exclude the potential for further acquisitions as the company continues to execute on its buy and build strategy.
Companies: SDI Group plc
Futura Medical has reported details of its third meeting with the FDA that firmed up the format of the six-month confirmatory study. The new trial, known as FM71, will involve c 100 patients with erectile dysfunction (ED). Around c 20 will be in the US and the balance will be similar to those who took part in the FM57 Phase III trial. The primary endpoint is efficacy against baseline assessment. The important secondary endpoints relate to speed of onset of effect and adverse events. There is no placebo and a comparison arm, using 5mg tadalafil (Cialis), will employ the same endpoints and provide an appropriate reference frame for an overall MED3000 risk/benefit analysis.
Companies: Futura Medical plc
ANGLE raised £19.6m (gross) to capitalise on the first-mover advantage that the FDA clearance for Parsortix will create, catalysing ANGLE’s ability to exploit the emerging multi-billion dollar liquid biopsy market. It will enable ANGLE to pursue multiple parallel revenue streams: (i) as a service provider to the pharma industry particularly looking to improve on immunotherapy patient outcomes (companion diagnostics) and (ii) to develop a number of specific clinical applications. Not only does it strengthen the balance sheet ahead of partner discussions but it provides the resources to develop in parallel relevant laboratory developed tests and fund the necessary clinical utility studies that will accelerate clinical adoption. We re-introduce forecasts and raise our target price to 150p (c.£310m EV), which is supported by risk-adjusted DCF and peer group analyses.
Companies: ANGLE plc
Scancell has announced a proposed raise of up to £33m in additional funding at a price of 13p a share. Redmile Group will invest c £30m through an immediate £12.1m subscription in 93.1m new shares, with a further £17.9m as a convertible loan note (CLN) subject to shareholder approval. There is also an Open Offer of up to £3m (23.3m shares).
Companies: Scancell Holdings Plc
Allergy Therapeutics has announced the screening of the first patient in the G309 exploratory field study of Grass MATA MPL, a short course, aluminium-free, allergen-specific, subcutaneous immunotherapy (SCIT), in seasonal allergic rhinitis and/or rhinoconjunctivitis induced by grass pollen. G309 is a double-blind, placebo controlled, randomised study designed to evaluate the efficacy and safety of an optimized Phase III dose of 27,600 SU Grass MATA MPL. The trial will run for one year, capturing the 2020/21 allergy season, and recruit c 150 patients over 12 sites in Germany and the US. The primary endpoint is the combined symptom medication score (CSMS) averaged over the peak grass pollen season.
Companies: Allergy Therapeutics plc
Allergy Therapeutics (AGY.L): Initiation of field trial | Sensyne Health (SENS.L): Research agreement with Milton Keynes University Hospital
Companies: Allergy Therapeutics plc (AGY:LON)Sensyne Health Plc (SENS:LON)
Venture Life aims to become a global leader in the self-care branded product market, where there are a number of structural growth drivers. It has a unique and scalable platform to develop, manufacture and distribute products, including its own brands and international customers’ brands. What is already a high margin business is poised to deliver a compelling mixture of top line growth with significant operating leverage. Performance in H1 (EBITDA +347%) highlights the potency of VLG’s model. Acquisitions can also leverage the platform to drive growth, and management has a very strong track record here. On top of this exciting growth play, there is also a chance that its Dentyl dual-action mouthwash could have applications to slow/reduce CV19 transmission, adding to the upside potential.
Companies: Venture Life Group Plc
RUA Life Sciences announced its trading update for the six months to 30 September 2020. The global pandemic and the reduction in the number of elective surgeries had a (previously announced) impact on RUA Medical Device’s revenues. There was also a slight reduction in RUA Biomaterial’s licensing income, but in both divisions there has been a recent recovery and catch-up. Our valuation remains unchanged as our model had included these delays, and those divisions comprise minor components of our total valuation.
Companies: RUA Life Sciences Plc
The formal launch of DXRX - The Diagnostics Network marks a definitive step forward for Diaceutics. The development of an automated data platform brings a host of benefits to stakeholders and a meaningful number of collaborations are now live. With the share price now trading at a level more than 30% below that prior to September's interim results, we are upgrading our recommendation to Buy.
Companies: Diaceutics Plc
Aided by a strong improvement in trading in the core business and ongoing demand for the Primestore MTM device, EKF has indicated it is on track for a record monthly performance in October. In addition, Primestore MTM has recently been successfully evaluated by Public Health England in a peer-reviewed comparative study, which concluded it was the only commercially available sample collection device where no residual virus was detectable out of 23 tested. We believe this may bode well for wider UK market adoption in future. Having upgraded several times already this year, we make no further changes to our estimates, but continue to see sensitivity to the upside.
Companies: EKF Diagnostics Holdings plc
Avacta (AVCT.L): Adeptrix COVID-19 Diagnostic Test update | Diaceutics (DXRX.L): New contract win
Companies: Avacta Group plc (AVCT:LON)Diaceutics Plc (DXRX:LON)
Synairgen has raised £80m to fund a Phase III trial for SNG001 in COVID-19 disease, which is due to commence in Q4 2020 and will be run globally by Parexel, with results expected in Q2 2021, and scale up manufacturing. This follows a successful pre-IND meeting with the FDA, which provided the guidance to commence such a study. Assuming that this trial replicates the results seen in the 100-patient Phase II trial, we would expect Emergency Use Approval (EUA) to follow shortly thereafter. Meanwhile, the Managed Access Programme (MAP) in the UK and Europe, run by Clinigen, could generate early commercial revenues. We have made adjustments to forecasts to reflect these costs and raise our SOTP rNPV target price to 420p, which could rise further should stockpiling orders be received.
Companies: Synairgen plc
Image Scan is a specialist in the field of X-ray imaging for the security and industrial inspection markets. This morning's update points to results for the year to 30 September 2020 as exceeding previous guidance, alongside delivering a strong cash position at year end, whilst visibility for the year ahead is lower. Today's update follows on from the announcement earlier this month at the time of the launch of a new security solution, the AXIS-CXi cabinet X-ray system, part of Image Scan's wider product development programme.
Companies: Image Scan Holdings plc