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Archive

Hybridan Lifesciences wrap: Epistem Holdings, ImmuPharma, Motif Bio, Synergy Healthcare and others

Risers

Eden Research (LON:EDEN)

On 20 May, the natural micro-encapsulation company signed an agreement with a

Sumitomo-related company and Sipcam (Italy and Iberia) to evaluate two new

products targeting additional important crop diseases. This follows Sipcam taking an

exclusive licence to Eden's first product (3AEY) in 2014, for the treatment of botrytis.

This product will be launched following the completion of the EU product registration

allowing the sale and use of 3AEY on grapes against botrytis, initially, across the

Southern EU zone. This authorisation was granted on 26 May.

Botrytis is a widespread fungal disease that causes grey mould on most fruits and

vegetables often leading to the rapid loss of commercially viable crops. The average

losses from affected crops account for around 20% of the total harvest, costing in

the region of 10-100 billion euros worldwide. The market size for Botryticides is

around $300m per annum. Eden received a further regulatory boost on 25 June

receiving notice that geraniol and thymol are now exempt from the maximum residue

level under European regulations.

MotifBio (LON:MTFB)

On 28 May, the clinical stage biopharmaceutical company specialising in developing

novel antibiotics, announced it had received notification that the FDA was in

agreement with Motif's Phase III clinical development programme for iclaprim, a

broad-spectrum antibiotic designed to be effective against multi-drug resistant

bacteria. On 15th July, Motif announced an addition to its scientific advisory board:

Dr. Thomas M. File a renowned expert in infectious diseases, Chairs the Division of

Infectious Diseases at Summa Health System, Akron, Ohio, is Professor of Internal

Medicine and Master Teacher, and the Chair of the Infectious Disease Section of

Northeast Ohio Medical University. On 22 July, Motif announced that it had received

Qualified Infectious Diseases Product designation for acute bacterial skin and skin

structure infections, and also for hospital acquired bacterial pneumonia, thereby

satisfying the final condition of the £22 million placing which was announced on 23

June 2015 .

Tiziana Lifesciences (LON:TILS)

On 7 May the clinical stage biotechnology company focused on targeted drugs to

treat diseases in oncology and immunology, announced that it had exclusively

licensed a novel anti-cancer stem cell agent, capable of targeting aggressive tumour

forming cells originating from the breast, pancreas, colon and prostate, from Cardiff

University scientists. Under the terms of the agreement, Tiziana will fund £50,000

per year for a research project at the University focused on building the structure

activity relationships around OH14 and to improve the activity of this series of

compounds. Additionally, Tiziana will pay to the University milestone payments up to

c.£2 million and pay royalties on sales of any licensed products developed as a result

of the project. If certain milestones are achieved Tiziana will also pay one per cent

of its enterprise value to the University in the event of a trade sale of Tiziana to a

third party. This agreement is Tiziana's second with the University following the Bcl3

licensing agreement in January 2014. The company announced FY2014 results on 5

June showing a loss of £3.6m and rounded off with the below outlook.

“All of the Company's programmes address areas of significant unmet medical need;

either as a potential new approach to metastatic cancer with Bcl-3 or stratification of

patients to provide more personalised treatment with the "TOP 20", to new molecules

to help sufferers of thymic and other cancers (milciclib), or a fully human monoclonal

antibody with potential application in a number of autoimmune and inflammatory

diseases (foralumab). Now with the latest in-licensing of anti-cancer stem cell

technology from the University of Cardiff (c-FLIP) the Company has an innovative

research portfolio with two clinical assets. These programmes will use the funds

raised in the March and April 2015 fundraisings to reach the individual programme's

inflection points.”

Avacta (LON:AVCT)

On 18 May, the global provider of proprietary diagnostic tools, consumables and

reagents for life sciences, announced that it had entered into a collaboration,

licensing and option agreement with Moderna Therapeutics. Under the terms of the

agreement, Moderna will make an upfront payment of $500,000 which provides

Moderna exclusive access to Affimers against certain targets which may be extended

to include additional targets by a further payment. Moderna will also make certain

payments to Avacta for research services to deliver pre-clinical development

milestones. Moderna has the option to enter into exclusive license agreements for

selected therapeutic Affimer candidates for clinical development and in each case

Avacta will be entitled to milestone payments. The total value of these payments

could reach several tens of millions of dollars. Avacta is also entitled to royalties in

connection with future product sales. The pre-close trading update of 7 July included

an update on product development suggesting that Affimers could become a leading

bio-therapeutic platform with key competitive advantages over both antibodies, and

also over other non-antibody protein scaffolds.

On 15 July, Avacta announced a conditional placing at 1.25p raising £22m, in order

to initiate several more in-house pre-clinical drug development programmes and to

develop a small range of platform technologies for half-life extension, targeting and

combination therapies.

Scientific Digital Imaging (LON:SDI)

On 14 May, the Group focused on the application of digital imaging technology for

use in life sciences, healthcare, astronomy, and art conservation, announced an

update on trading for the 12 month period ended 30 April 2015. All product lines and

sales territories contributed to growth in turnover in the second half of the financial

year. As previously announced at the half year, the Company actively controlled costs

throughout the year. The Board expects reported profit before tax to be in line with

management expectations, with earnings adjusted for reorganisation costs ahead of

previous management expectations. The full year Apr 2015 results showed revenue

flat at £7m and adjusted operating profit move from a loss to £393k in the black.

Having raised over £500k during the year, the Board anticipates that Opus

Instruments and Artemis CCD will continue to make positive contributions to SDI and

the new Synoptics products released in 2015, together with a more focused sales

strategy, will result in continued growth.

Fallers

Epistem (LON:EHP)

In May, the personalised medicine and biotechnology company announced that the

National Institutes of Health and the National Institute of Allergy and Infectious

Diseases had completed its evaluation of the University of Maryland Baltimore

response to its request for proposals for Radiation/Nuclear Medical Countermeasure,

for which Epistem’s Preclinical Research Services division acts as a sub-contractor,

and this proposal had not been selected for an award. These activities had typically

generated revenues of circa £1m per annum. Epistem fully expects to continue to

tender and work on other Nuclear Medical countermeasure developments. In June

Epistem announced the issue of 492k shares in respect of an earnout to Visible

Genomics relating to the receipt by the Company of regulatory approval in India for

its Genedrive® TB molecular diagnostic test.

Advanced Oncotherapy (LON:AVO)

The developer of next generation proton therapy systems for cancer treatment

announced results for the year ending December 2014 with losses nearly doubling

to £7.5m reflecting the acceleration of its development activities. In July Advanced

Oncotherapy announced that the second Coupled Cavity Linac unit had been

manufactured and delivered to the Company's testing facility in Geneva. As well as

this, the company announced that Howard de Walden Estates Limited, which in

January 2015 granted a 50 year lease to the Company for the Harley Street site, had

agreed to expand the agreement beyond the 8,000 sq ft space agreed in the original

lease. This would allow the company to develop a Proton Therapy Centre on the

same site but with an extended footprint, offering potential operators a larger overall

facility to manage.

Immupharma (LON:IMM)

In June, the specialist drug discovery and development company announced that Dr

Sylviane Muller the key inventor of Lupuzor™ and Research Director at Centre

National de la Recherche Scientifique had received "The CNRS Medal of Innovation"

for her discoveries made on the mechanism of action of Lupuzor™ and its

applications to other autoimmune diseases. The following month it was announced

that Immupharma had announced that details for the drug’s Phase III trial had ‘gone

live’ on Clinicaltrials.org. Key European and US sites have now been identified and it

is anticipated that about 15 sites in the US and 20 sites in Europe will be enrolled.

Recruitment could be completed during the summer of 2016. Patient dosing is

expected to commence this autumn. ImmuPharma has also signed a Term Sheet

with a US investor for a proposed private placement to fund the clinical trial. The

initial instalment of funding consists of a convertible loan of US$2,000,000 plus

additional capital of up to $12,000,000, at the Company's discretion, subject to

certain criteria, over a two year period.

On 29 July Immupharma disclosed the sad news that Richard Warr, Chairman, had

passed away. An interim Chairman, Dr Franco Di Muzio had been in place since 6

May due to Richard Warr’s poor health.

Synergy Health (LON:SYR)

The global provider of specialist outsourced support services to health-related

markets announced on 29 May that the recommended combination of Synergy with

STERIS was to be blocked by the US Federal Trade Commission, and that the parties

would be contesting this decision. A proposed Court Meeting to seek approval for

modification of the Scheme to extend the long-stop date to 31 December 2015, was

later postponed from 11 June to 24 September. The company also posted final results

on 2 June (FY March 2015). Revenue was up 7.5% to £408.8m, adjusted PBT 6% to

£58m and operating cash flow 1.6% to £99.6m. As a result of the proposed

combination with STERIS Corporation, the Board chose not to pay an interim

dividend, and is not proposing to pay a final dividend (2014: 14.20p). The Board will

continue to keep its dividend policy under review.

Benchmark Holdings (LON:BMK)

On 23 June, the international aquaculture genetics, animal health, technical

publishing and sustainability science business, announced its Interim Results for the

six months ended 31 March 2015. Revenue increased by 30% to £19.8m but EBITDA

from Trading Activities fell by £1.4m to £1.2m. The trading period included a

successful secondary capital raise in December 2014 raising £70m (gross) of new

equity at 85p. The outlook stated that despite the adverse financial impact from

aggressive generic competition to the Salmosan product line, mitigation measures

have been successfully established, and the Group has become strategically more

robust through the creation of the new Breeding & Genetics division which is

performing well. The Technical Publishing division is now moving into profitability.

Continued and significant investment in R&D and a pipeline of new animal health

products bodes well for the future growth and stability of the business.

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