Corporate broker WH Ireland (WHI) used a piece of important news flow to re-look at the potential and valuations of the NetScientific PLC (AIM:NSCI)’s (NSCI) investments.
On Tuesday, NSCI investee company PDS Biotechnology Corporation (NASDAQ:PDSB) inked a licence deal with Merck KGaA worth an upfront US$5mln.
It will also be entitled to up to US$11mln in development and regulatory milestone payments, and up to US$105mln in commercial milestones, as well as a 10% royalty on future sales of PDS-developed M9241.
In the wake of the announcement, WHI said in a note: “We see our risked-based SOTP [sum-of-the-parts] analysis of NSCI’s overall portfolio holdings yielding a fair value of 200p, and we highlight that NSCI’s holding in PDS Biotechnology now has a realisable value of around £13mln, ca 70% of NSCI’s market valuation.”
The shares are currently changing hands for 76p each.
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