Trinity Delta Equity Research & Stock Reports

NEXSTIM OYJ

Nexstim is committed to exploiting the commercial opportunity for its proprietary Navigated Brain Therapy (NBT) system in the rapidly growing depression market. The negative E-FIT stroke trial has closed the door on pursuit of stroke rehabilitation, necessitating a shift in strategy and resources towards commercialisation of NBT in major depressive disorder (MDD) in the US and Europe. First installations have occurred in multiple sites in the US, Europe and Asia, with the strategy to support further roll out across the US being advanced. We have revisited our forecasts and valuation to reflect Nexstim’s depression-led strategy, and now value the company at €35.9m, or €0.37/share (€0.34/share diluted).

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MaxCyte

The first patient has been treated in the Phase I trial with MCY-M11 (antimesothelin, CARMA-hMeso), the novel chimeric antigen receptor (CAR) cell therapy developed by MaxCyte.

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Fresh data from the three Phase II trials with bemcentinib (BGB324) in non-small cell lung cancer (NSCLC) have been presented at the World Conference on Lung Cancer (WCLC), adding weight to the results reported during ASCO. The data are still earlystage, but continue to indicate that bemcentinib can enhance the activity of pembrolizumab (Merck’s Keytruda), erlotinib (Roche’s Tarceva), and docetaxel. The data from the pembrolizumab trial continue to stand out, with an ORR of 40% in the 10 patients with Axl-expressing tumours, which included those that were PD-L1 negative. Our valuation of BerGenBio is unchanged at NOK52.65/share.

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e-Therapeutics

e-therapeutics’ operational update for H119 (six months to July 2018) highlighted progress in strengthening the NDD (network-driven drug discovery) platform; business development activities; and drug discovery programmes.

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Bonesupport shares have had an impressive run, having more than doubled (up 116%) since our June initiation. Management presentations at recent Capital Markets Days in Stockholm and London suggest the company is at an early stage in its plans to exploit the full potential of CERAMENT and wider opportunities in the global bone void filler market. A key outcome of the summer’s strategic review was a focus on strengthening and optimising the US and European commercial footprint. This solid commercial foundation, coupled to near-term clinical and HEOR data read outs, should enable Bonesupport to leave behind a challenging 2018 and transition to a new growth phase from 2019. We upgrade our valuation by c43% to SEK1,892m (SEK37/ share) on the back recent progress and better growth prospects.

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Mereo Biopharma Group

Mereo BioPharma has built a rich 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 MPH-966 for the treatment of alpha-1 antitrypsin deficiency (AATD). The strategy is to in-license more late-stage assets for the treatment of rare diseases. Two other programmes for larger indications have already generated compelling Phase II data. Mereo BioPharma aims to out-licence these, with the first deal expected in 2019. We value the company, using an rNPV model, at £510m, or 615p a share (fully diluted).

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