Motif Bio plc (LON:MTFB) – BUY*: Contract signed with leading CRO
Market Cap: £66m; Current Price: 61p; Target Price: 114p
Clinical trials contract signed with Covance to conduct iclaprim Phase 3 trials
- Motif announced the signing of a clinical trials agreement with Covance, a leading global Contract Research Organisation (CRO), and a wholly owned subsidiary of Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH).
- The trials under the agreement are for Motif’s flagship late clinical-stage antibiotic, iclaprim.
- Covance will run two Phase 3 randomised, double blind, multicentre clinical trials with iclaprim. The trials will evaluate the efficacy and safety of intravenous iclaprim versus intravenous vancomycin in the treatment of acute bacterial skin and skin structure infections (ABSSSI).
- Together with Covance, Motif is now progressing with the selection of countries and investigator sites; programme study drug logistics; and submission of regulatory documents to health authorities, institutional review boards, and independent ethics committees worldwide.
NORTHLAND CAPITAL PARTNERS VIEW: The signing of this contract ensures a timely start to iclaprim’s planned Phase 3 programme. As such, Motif remains firmly on track to meet its goal of marketing iclaprim in 2018. Finally, Covance has unparalleled experience in running antibiotic trials, being a leading global CRO.
Connemara Mining Company (LON:CON) – CORP*: Oldcastle update
Market Cap: £0.7m; Current Price: 1.3p
Deep drill holes to test for Tara-style zinc mineralisation
- Connemara Mining Company’s joint venture partner, Teck Ireland, will commence the drilling of two deep (500m) holes in the Drumlerry area targeting Tara-style zinc mineralisation.
- Each hole will take 5-6 weeks to complete and the holes are expected to begin in October.
NORTHLAND CAPITAL PARTNERS VIEW: This two-hole deep drill programme is positive news for Connemara Mining Company. The programme is being managed and funded by joint venture partner Teck as part of its €800.000 earn-in to 75% of the project from 51%. As a result, Connemara has no financial risk exposure to the programme but would benefit from any upside should a discovery be made. Teck is targeting a Tara-style zinc mineralisation based on seismic and geochemical anomalies. Tara is a massive orebody that contained c. 110mt at 10% Zn and 2.5% Pb. The mine began production in 1977 and still produces around 150,000t of zinc and 22,000t of lead per annum. The Drumlerry area is located around 20km away from Tara and, of the 11 shallow holes previously drilled by Connemara, five contained zinc mineralisation, demonstrating that there is zinc mineralisation in the local system. We look forward to the completion of the programme and more importantly the assay results.
Latham (James) (LON:LTHM) – BUY*: NED change
Market Cap: £133.7m; Current Price: 687p; Target Price: 800p
Fabian French joins as NED
- Fabian French has joined the Board as a Non-Executive Director. Pippa Latham has stepped down after 10 years on the board.
- French qualified as a solicitor with Linklaters before starting a career in corporate finance working for major investment banks including Daiwa SMBC, Dresdner Kleinwort Benson and Merrill Lynch. More recently, he has worked in the charities sector. He is beneficially interested in 370,052 shares, representing 1.9% of the total voting rights.
- No change to forecasts, BUY rating and 800p price target.