Q2 results: Ridinilazole Phase III on track

Q2 results on 11th October were in line with expectations, with cash at period-end of £20.9m and the Phase III trial of ridinilazole on track to report top-line data in H2 2021. As a reminder, the Phase III programme of ridinilazole comprises two global trials run broadly concurrently, each expected to recruit approx. 680 patients with CDI (confirmed by clinical symptoms and a positive CDI toxin test). The primary endpoint is the efficacy of ridinilazole (200mg twice a day) vs. vancomycin (125mg

Direct US sales strategy drives valuation upgrade

We have updated forecasts to reflect Summit’s plan to establish a direct sales team in the US for ridinilazole, currently in Phase III for the treatment of C. difficile infection (CDI). As a result, our intrinsic value estimate is upgraded to 66p/share (from 48p), with Summit’s growing portfolio of preclinical, new-mechanism antibiotics providing potentially substantial further upside. We reiterate our positive stance.

New DDS-04 data: promising potency against priority pathogen

Today’s new data on DDS-04 (a series of antibiotics against Enterobacteriaceae, a group of pathogens classified as High-Priority by the WHO) confirms that the series represents a high-potential addition to Summit’s emerging pipeline of new-mechanism antibiotics. We look forward with interest to further developments, including the selection of a preclinical candidate, and reiterate our positive stance.

FY results reflect expanding pipeline of new-mechanism antibiotics

FY results highlight Summit’s advancing pipeline as a pure-play developer of new-mechanism antibiotics, Ridinilazole (targeting C. difficile infection, an area of unmet need due to high recurrence rates) recently entered Phase III trials, and we continue to expect SMT-571 (targeting N. gonorrhoeae infection, already on its last treatment option as a result of high and rising antibiotics resistance) to enter Phase I trials by year-end. In addition, encouraging development progress is being made o

Proposed subscription to raise $25m boosts cash runway to early 2020

The subscription provides a welcome boost to Summit’s near-term plans to initiate Phase III trials for ridinilazole, the company’s novel treatment of C. difficile infection, in Q1 2019; and supports the completion of IND enabling studies for SMT-571 for the treatment of gonorrhoea, expected to enter Phase I trials in H2 2019. We reiterate our positive stance on Summit.

Morning Song

Bagir Group (BAGR LN) Interim results | M&C Saatchi (SAA LN) H1 outperformance provides a huge buffer against uncertainty | Summit Therapeutics (SUMM LN) H1’s highlight antibiotics programmes on track

Morning Song

ECO Animal Health Group (EAH LN) Margin beat drives EBITDA upgrade | Summit Therapeutics (SUMM LN) Microbiome preservation data on ridinilazole published in PLOS ONE | Verona Pharma (VRP LN) Conviction Opportunity in Pulmonary Disease

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Burford Capital (BUR LN) Petersen v Argentina positive developments | Low & Bonar (LWB LN) Tough H1 | ReNeuron Group (RENE LN) Exclusivity deal in ophthalmology, licensing deal expected in 2018 | Safestyle UK (SFE LN) Turnaround well underway but additional hit to profits and cash | Summit Therapeutics (SUMM LN) Grant award from CARB-X to support gonorrhoea programme | Swallowfield (SWL LN) Strong growth in Brands mitigates Manufacturing

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Adept4 (AD4 LN) Satisfactory progress against key objectives for 2018 | Ergomed (ERGO LN) TU disappoints but medium-term outlook bright | Redde (REDD LN) In line FY update, no change to forecasts | Small-cap quantitative research Momentum screen refresh + 7 highlighted stocks | Summit Therapeutics (SUMM LN) PhaseOut DMD misses endpoint: ezutromid development terminated

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BCA Marketplace (BCA LN) Apax offer underplays the growth potential and forecast upside risk | Summit Therapeutics (SUMM LN) Second N. gonorrhoeae target identified |

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Amino Technologies (AMO LN) Full year expectations unchanged | Findel (FDL LN) Year of progress and delivery to instill confidence | Instem (INS LN) Contract win for Samarind RMS | Microsaic Systems (MSYS LN) Clear path to commercial success | Summit Therapeutics (SUMM LN) Q1 results: Phase II DMD trial on track for Q3 data release

Morning Song

Bioquell (BQE LN) In line trading despite FX headwinds | Carador Income Fund (CIFU LN) Significant reset activity post expiration of US risk retention appeal | Driver Group (DRV LN) Sale and leaseback in line with strategy | Harwood Wealth (HW LN) Acquires retirement solutions specialist Plan65 | Midatech Pharma (MTPH LN) FY results in line with expectations, US ops achieve EBITDA breakeven | River and Mercantile Group (RIV LN) AuM +1.1%, -5% EPS forecasts; resilience remains | Safestyle UK (SFE

Warpaint London+ (W7L, House Stock at 375p) - Trading ahead of expectations - +10% upgrade implied

The Hardman & Co Monthly: April 2024

Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol

Avon Protection - Unmasking its growth potential

Avon Protection’s capital markets day highlighted its continued focus on medium-term margin expansion (targeting operating margin of 14–16%), concentrating on its core business of respirators and head protection. The unwinding of the armour business, alongside the consolidation of Team Wendy (acquired in H220) should enable Avon to benefit from rising global defence spending. Its strong relationship with the US DoD, and organic growth opportunities with recurring revenue from necessary product r

Hybridan Small Cap Feast - 15 April 24

15th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Change of Market: TheWorks (WRKS.L) a multi-channel value retailers of books, arts and crafts, stationery, toys and games, offering customers a differentiated propositio

Morning Note – 9 April 2024

Morning Note – 8 April 2024

Hybridan Small Cap Feast - 17 April 24

17th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

Hardman & Co Research: Tissue Regenix (TRX) - Six consecutive periods of >20% growth

TRX is focused on the development and commercialisation of two proprietary processing technologies for the repair of soft tissue (dCELL®) and bone (BioRinse®). It has a broad portfolio of products used in biosurgery, orthopaedics and dental markets. Investment in tissue processing, manufacturing capacity and strong commercial partners, together with its “4S” strategy, has generated six consecutive reporting periods of strong growth, with TRX turning EBITDA-positive in 2023. Further growth in 202

Cambridge Nutritional Sciences - H1 2024 interims: Executing a newly focussed st

Cambridge Nutritional Sciences (CNS) has published its H1 2024 results to end September 2023. Group revenues grew 44% to £4.9m and gross profits increased by 63% to £3.1m, with the company benefitting from newfound operational efficiencies. With its now streamlined strategy focussing on the core Health & Nutrition business and the initial signs of an encouraging uptick in sales momentum, we believe the company is well positioned for growth that will help create future value for shareholders. We

Venture Life Group - Strong organic growth; focus on EBITDA

Venture Life has reported FY23 results to December 2023, following the February trading update. Revenues grew 17% in the year to £51.4m (our est. £50.7m) and adjusted EBITDA was £11.6m (our est. £11.6m). Cash conversion was 85%, generating £9.8m of cash from operations. Cash generation and no M&A in 2023 allowed the company to de-lever, closing FY23 with net debt to adjusted EBITDA at 1.3x. Management have focused on growth with three therapy areas generating double-digit revenue growth and onli

Creo Medical - Solid FY23 lays the groundwork for 2024

Creo Medical has released a trading update for FY23, an active year for the company, with progress made across all business segments. Traction improved in H223, following Speedboat Inject’s European clearance for upper gastrointestinal (GI) procedures and the accelerated approval and launch of Creo’s slimmest electrosurgical device, Speedboat UltraSlim. Top-line growth was supported by continued streamlining of the cost structure, resulting in a better-than-expected underlying EBITDA loss (impro

Morning Note – 22 March 2024

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (

Warpaint London + (W7L, House Stock at 382p) - Late-year sparkles– another double-digit upgrade to FY23F EPS

Zoetis Inc.: Launch Of CircoMatch & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (02/23)

Zoetis delivered a decent set of results for the last quarter of 2022 meeting analyst expectations as well as the high end of its management guidance. Despite the economic challenges, ongoing pandemic recovery, and the political unpredictability brought on by the war in Ukraine, they delivered operational growth for the year in each of their top 13 markets. The company's unique companion animal portfolio drove its 8% operational revenue increase for the year, growing 14% operationally. In compar