Destiny Pharma PLC (AIM:DEST, OTC:DTTYF)’s partnership with Sebela in the US for the Phase III development and commercialisation of the NTCD-M3 c.difficile infection (CDI) treatment de-risks the equity story, reckons broker finnCap.
The UK group can earn upfront and milestone payments of up to US$570mln and royalties on sales of 10-18% on a tiered basis.
There is also the prospect of partnering deals on NTCD-M3 (ex-US) and another anti-infective, XF-73.
Destiny had to strengthen its balance sheet as part of the deal and plans to raise £7mln via a placing and up to £1mln in an open offer.
House broker finnCap’s target price reduces to 285p from 306p given the higher share count from the fundraise.