OncoSil Medical (ASX:OSL) has received a valuation of A$175-210 million, or A$0.50-0.60 per share, from international life sciences research group, Van Leeuwenhoeck Institute.
OncoSil's shares last traded at A$0.175.
The following is an extract from the report.
The Report says:
Based on our NPV valuation, we believe that OncoSil Medical is substantially undervalued at the current share price of AUD 0.16.
Considering the upcoming CE Mark, OncoSil™ much higher potential commercial success compared to Sirtex’ SIR-Spheres (with total annual sales of more than USD 110 million) and the high unmet medical need in pancreatic and primary liver cancer, induces us to calculate a more justified valuation of Oncosil of AUD 175-210 million or AUD 0.50-0.60 per share.
This represents a substantial upside from the current share price.
Executive Summary:
- OncoSil Medical is a Life Sciences company that provides an innovative technology for safer and more effective radiation therapies for difficult to treat cancers. Its lead product is OncoSil™ for pancreatic cancer. A second indication is HCC. For both indications the company filed for a CE Mark in the EU.
- OncoSil™ is an implantable device that emits radiation directly into the targeted tumour. Four clinical trials were conducted with positive results on safety and efficacy. Due to the high unmet medical need and very poor survival rates of pancreatic and liver cancer, there is a large demand for new therapies to treat these cancer types.
- In July the company filed for CE Mark for pancreatic and HCC liver cancer. On September 6th it announced that the Notified Body had scheduled a Fast Track review for OncoSil™, which will take place on October 6th over four days. A CE Mark will facilitate commercialisation and sales in the EU plus Australia, Canada and Singapore. The company also expects to file for an IDE with the FDA in 2016Q4.
- Both the market for pancreatic cancer and HCC liver cancer are estimated to be USD1-1.5b. The lack of effective treatments provides ample opportunity for a game changer for the treatment of these cancers. We feel that OncoSil™ therefore has the potential to be a blockbuster (sales > 1 billion) within a few years.
- There are a number of key milestones to focus on in the next 6-12 months.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.