Motif Bio plc (LON:MTFB) – BUY*: Further pre-clinical evidence for iclaprim
Market Cap: £56m; Current Price: 52p; Target Price: 114p
Efficacy of iclaprim confirmed in laboratory study
- Motif announced top-line results of an independent report from microbiology specialists JMI Laboratories.
- The report shows that iclaprim is effective in vitro against a range of Gram-positive bacteria, including Staphylococcus aureus, one of the key causes of acute bacterial skin and skin structure infection (ABSSSI) and hospital-acquired bacterial pneumonia (HABP) - the two indications iclaprim is to be tested against in phase 3 trials.
- The recently completed laboratory study tested iclaprim against more than 2,000 bacterial strains, including 1,178 strains of Staphylococcus aureus collected in 2014 from patients in the U.S.A., Europe, Asia Pacific, and Latin America.
- Iclaprim was found to be 16-fold more potent than trimethoprim, the only other antibacterial dihydrofolate reductase inhibitor (DHFRi) administered alone in today's market.
- The report demonstrated that iclaprim is active against Staphylococcus aureus at very low concentrations.
- Finally, iclaprim was also shown to be highly active against methicillin-resistant Staphylococcus aureus (MRSA).
NORTHLAND CAPITAL PARTNERS VIEW: The JMI report re-confirms that iclaprim is effective in vitro against a range of Gram-positive bacteria. Importantly, it demonstrates that the drug is effective against methicillin-resistant Staphylococcus aureus (MRSA), which is particularly important in treating ABSSSI and HABP, where currently available treatments are not fully effective due to resistance or side effects. We reiterate our 114p Target Price.
MediaZest (LON:MDZ) – CORP: Finals
Market Cap: £2.0m; Current Price: 0.195p
FY15 hit by project slippage; better start to FY16.
- Revenue declined 15.7% to £2.5m following the delayed completion of a project into FY16 but the loss before tax remained unchanged at £0.7m reflecting lower interest and administrative costs. Net debt was £453k (FY14: net cash of £68k) with operating cashflow outflow partly offset by January’s £438k placing. Shareholder loans included a £114k short term facility that was put in place for a delayed project – this was repaid in April.
- Successful launch of MediaZest Retail Analytics with two initial customers secured. New clients for its traditional AV business included Hyundai/Rockar, The Post Office, Ted Bake and Pfizer. Additional work was secured with Samsung, Kuoni, HMV and work with Adidas has resumed in FY16. MediaZest’s project with Hyundai/Rockar for the car dealership at the Bluewater shopping centre won the Retail Week award and has been shortlisted for a Point of Purchase Advertising International Award.
- Positive start to FY16 with new client engagements with Ted Baker and Adidas along with ongoing projects including The Post Office and Hyundai/Rockar. A wide range of these opportunities are on a roll out, ‘business as usual’ basis, and management believes these should lead to sufficient revenue to move MediaZest to consistent profitability.
NORTHLAND CAPITAL PARTNERS VIEW: Top line decline reflects the lumpy nature of MediaZest’s business with the slippage of the completion of a project hitting FY15 numbers. Management is looking to address this by increasing the breadth and depth of the client base and also through products such as MediaZest Retail Analytics. The latter provides good incremental revenue and better visibility but it is a new product and it will take time to gain commercial traction. Balance sheet remains fairly tight but shareholders have been consistent supporters. The outlook remains positive - MediaZest is a proven AV innovator and the retail sector continues its investment in AV technology.
Connemara Mining Company (LON:CON) – CORP: Inishowen update
Market Cap: £1m; Current Price: 1.75p
Defines gold-in-soil anomalies for follow up trenching
- Connemara Mining Company has completed a 700sq m soil sampling programme over the area that contained most of the boulders that were determined to have high grade gold contents during the previous exploration programme (26/06/2015).
- Grades up to 0.46g/t Au were identified and an area has been defined for follow up trenching.
NORTHLAND CAPITAL PARTNERS VIEW: Connemara Mining Company’s early stage exploration programme at Inishowen continues to produce encouraging results. This latest soil sampling programme defined gold-in-soil anomalies that appear spatially associated with quartz vein boulders (float) that have grades up to 15g/t Au.