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

Morning Song

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

Morning Song

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

Morning Song

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

Morning Song

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

SkinBioTherapeutics - FY23 results

SkinBioTherapeutics has published results for the 12-months to June 2023, reporting AxisBiotix-Ps revenues up 77% YoY to £132k and an improved gross margin of 65% (FY22A: 61%). Operating costs were stable and the operating loss was flat YoY at £3.0m. Cash at the year-end was £1.3m and subsequently the company raised c£3.3m gross via a placing and retail offer. We have introduced FY24 forecasts with this report, expecting continued growth in AxisBiotix-Ps revenues supported by territory expansion

RUA Life Sciences - Billion-dollar markets

RUA Life Sciences is developing products targeting billion-dollar global healthcare markets, which, if successfully commercialised it will generate significant value for the company. The current raise will support the business as it seeks to deliver the growth opportunities within its Contract Manufacturing business unit and commercialise and partner its lead vascular graft products and its heart valve leaflet composite material. We believe the company offers an attractive combination of establi

Fundraising looks well supported

RUA have announced, subject to shareholder approval at a General Meeting, the intention to raise equity via the combination of an institutional placing of shares, a subscription by certain directors and a retail offer. While the minimum gross proceeds are expected to be at least £4.1m, the full amount raised will be fluid until after the retail offer and shareholder approval. The final proceeds raised should be known after the outcome of the Retail Offer is announced on 8 December, and sharehold

FY23 results: consolidation and cash generation

For the year to 30 September 2023, Benchmark Holdings reported revenue FY23 of £169.6m, +7.5%YoY (currency adjusted +7%YoY) which was 0.7% below our outlook, and adjusted EBITDA of £35.5m, +9%YoY, 5% above our outlook. Net operating cash of £20.0m was almost double FY22 (£10.8m) with a notable improvement in working capital management from £(12.0)m to £(1.0)m underlining efforts to control costs and improve operational efficiency. Net debt was £45.6m, with year-end cash at £36.5m. The Group rep

Hybridan Small Cap Feast - 01/12/23

1st December 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

Morning Note – 1 December 2023

Trinity Delta Lighthouse: ANGLE

Trinity Delta view: Commercialisation of the Parsortix system is still at an early stage, although momentum is building, and management are continuing to focus on developing the potentially sizeable revenue streams through both ANGLE’s Product and Service offerings. The reality of current market conditions has driven difficult decisions to streamline infrastructure while still enabling investment into developing protocols on third-party molecular systems, and into products and services relevant

One Health Group (OHGR.AQSE) 174p Full Year Results 2023

One Health Group has reported a strong operational and financial performance in its first year as a listed company. Patients seen and procedures carried out experienced strong growth resulting in revenue and profitability coming in ahead of forecasts. The outlook remains positive, and the company offers an attractive combination of defensive growth at an undemanding valuation

LSE AIM Market Screener - 22 June 2023

 The market capitalization of 806 AIM stocks was £89.3bn as of 20 June 2023. FTSE AIM All Share Index was down 5.55% YTD to 785.2 as of 21 June 2023. There were 32 companies delisted from AIM over the period December 2022-June 2023. Among the top YTD winners, there were Celadon Pharmaceuticals (up 209%, MktCap £95m), Vast Resources (+211% YTD, Mkt Cap of £15m), B90 Holdings (+200%, MktCap £22mn), Verditek (154%, MktCap £6mn), Star Phoenix Group (+162%, MktCap $1.6mn), Inspecs Group (+162%, Mk

The Hardman & Co Monthly: September 2023

Feature article: Equity Income – UK or Global? Should investors widen their horizons? Introduction: ► The UK Equity Income sector (UKEI) is the fourth-largest investment company (IC) sector in the Association of Investment Companies’ (AIC) universe, with £12.5bn of assets (as at August 2023), and is the traditional home for investors looking for income in the equity market. ► The UKEI not only provides investors with a better dividend yield than the ge

Bio-detection becomes a commercial reality

Recent new contracts show that Kromek’s investment in bio-hazard detection technology is becoming a commercial reality. On 26 October the Group received a US$5.9m (£4.84m) contract from the US Department of Homeland Security Countering Weapons of Mass Destruction (CWMD) Office - the first for Kromek - to research and develop technologies for agent-agnostic bio-detection. On 31 October Kromek announced 3 more orders for CBRN detection worth a total of US$1.0m (£0.82m), most of which is expected

Mixed interims; placing forecasts Under Review

Venture Life Group - Strong cash generation

Venture Life has published its interim results to the end of June 2023, reporting group revenue growth of 24.4% to £23.5m, supported by both VLG brands and Customer brands. Although gross margin was down in the period as anticipated, tight operational cost control delivered improved adjusted EBITDA margin of 18.9% (H1/22A: 17.6%). As in previous years, we expect H2/23E to deliver stronger adjusted EBITDA and maintain our £11.6m FY23 expectation. Significantly, cash flow generation was strong in

Shield Therapeutics - $26.1m fundraise ($20.0m debt)/$6.1m equity)

Shield raised $26.1m through a $20m term loan facility with SWK Holdings (unconditional) and $6.1m equity placing to fund several initiatives to drive improvement in gross-to-net (GTN) prices (including new field access team), fund the working capital needs (inventories and receivables) of the US growth story and repay the $5.7m AOP Health convertible loan. The interims and Q3 update clearly show the fruits of the Viatris collaboration, with covered lives increasing 20% to 123m (vs. 100m) and st

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