Trinity Delta Equity Research & Stock Reports

BerGenBio has reported promising results from its broad Phase II programme with bemcentinib focussed on acute myeloid leukaemia (AML) and non-small cell lung cancer (NSCLC) throughout 2018. Most notable were the data from the study in NSCLC in combination with the PD-1 inhibitor pembrolizumab, in which patients with PD-L1 negative tumours responded well to therapy. The results thus far indicate the importance of biomarkers to identify those patients with Axl+ tumours, who are most likely to benefit from bemcentinib. The company is planning a series of randomised Phase II trials to confirm the findings to date, which are due to start in H219. BerGenBio also has two other products that have just entered clinical development. We value the company at NOK3.14bn, or NOK57.45/share.

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MaxCyte

MaxCyte has raised £10m (gross) after placing 5.9m new shares at 170p a discount of 8% to the prevailing share price on 4 February 2019. The extra capital will be primarily invested in its CARMA platform (proprietary mRNA-mediated CAR technology), including developing CARMA therapies for additional solid tumour indications. The first such therapy MCY-M11 is in Phase I trial in ovarian cancer and peritoneal mesotheliomas.

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Hutchison China Meditech

Hutchison China MediTech (Chi-Med) has achieved the historic Chinese approval of fruquintinib, a first for a novel oncology drug discovered and developed solely in China. With this and its subsequent launch, the company accomplished a key goal, set at its foundation in 2000, of bringing the first of a wave of globally competitive products to market. Chi-Med is now firmly fixed on becoming a leading global biopharmaceutical company. It has a broad pipeline of first- or best-in-class clinical assets, in oncology and immunology, which together with well-established domestic sales forces, creates a powerful platform to market innovative products in China. ChiMed is also taking first steps in building infrastructure to support commercialisation in the US and European markets. We value Chi-Med at £51.52/share or $33.49/ADS.

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Tissue Regenix Group

Tissue Regenix Group grew underlying revenues by 47% to £11.6m, ahead of our forecasts. This was achieved through the efficient integration of CellRight Technologies and the benefits of the new commercialisation strategy. Tissue Regenix now has a more focused direct marketing approach and is leveraging the return on its research and manufacturing capabilities by entering into strategic partnerships, such as those signed with ARMS Medical and Arthrex, Inc. These new relationships should sustain the strong growth of Tissue Regenix. Our valuation is unchanged for now at 20.9p/share.

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Tissue Regenix Group grew underlying revenues by 47% to £11.6m, ahead of our forecasts. This was achieved through the efficient integration of CellRight Technologies and the benefits of the new commercialisation strategy. Tissue Regenix now has a more focused direct marketing approach and is leveraging the return on its research and manufacturing capabilities by entering into strategic partnerships, such as those signed with ARMS Medical and Arthrex, Inc. These new relationships should sustain the strong growth of Tissue Regenix. Our valuation is unchanged for now at 20.9p/share.

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Mereo Biopharma Group

Mereo BioPharma has built a pipeline of four late-stage clinical assets as it focuses on becoming a rare disease, specialty pharmaceutical company. Its orphan disease products are BPS-804 for osteogenesis imperfecta (brittle bone disease), and MPH966 for the treatment of alpha-1 antitrypsin deficiency (AATD). The strategy is to inlicense more late-stage assets for the treatment of rare diseases. A proposed combination with OncoMed Pharmaceuticals would add two more clinical programmes but, more importantly, extends the cash runway through 2020, brings US infrastructure, and a NASDAQ listing. Pending approval, we have suspended our forecasts and valuation. Our prior valuation was £510m, or 615p a share (fully diluted).

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