Panmure Gordon reiterated its 'buy' recommendation and 23p price target for shares in Scancell Holdings PLC (AIM:SCLP, OTC:SCNLF) after the life sciences group announced that an international biotechnology company will evaluate its anti-glycan monoclonal antibody developed using Scancell's GlyMab platform.
"We will be updating our forecasts and investment thesis in light of recent," Panmure added in a note to clients.
The unnamed company will pay Scancell $1 million within 30 days for seven months of exclusive evaluation rights. The deal could then morph into a licensing agreement.
Panmure pointed out this is the second asset from the GlyMab portfolio that has generated partner interest.
In October 2022 Scancell signed a commercial license agreement with Genmab (CSE:GEN) giving the latter worldwide rights to an anti-glycan antibody.
To recap, the company received a $5.3 million upfront payment from the Danish biotechnology giant with the potential for milestone payments of up to $208m for each product developed and commercialised, up to a maximum of $624 million.
Scancell is also expected to receive low single-digit royalties from Genmab (CSE:GEN) on net sales of all commercial products.
Development remained on track as of the last update in October 2023, Panmure said.
The shares rose 2.4% to 9.62p.