Motif Bio Plc (LON:MTFB) – BUY*: Positive Phase 3 results
Market Cap: £67m; Current Price: 34p; Target Price: 90p
Iclaprim achieved primary endpoints in REVIVE-1 Phase 3 trial
Motif announced positive top-line results from REVIVE-1, its flagship global Phase 3 clinical trial of investigational drug candidate iclaprim in patients with acute bacterial skin and skin structure infections (ABSSSI).
Iclaprim achieved the primary endpoint of non-inferiority (NI) (10% margin) compared to vancomycin at the early time point (ETP), 48 to 72 hours after the start of administration of the study drug, in the intent-to-treat (ITT) patient population.
Iclaprim also achieved NI (10% margin) at the test of cure (TOC) endpoint, 7 to 14 days after study drug discontinuation, in the ITT patient population.
The drug was well tolerated in the study, with most adverse events categorized as mild.
Data read-out for REVIVE-2 is anticipated in the second half of 2017.
Veltyco Group plc (LON:VLTY) – BUY*: Acquisitions
Market Cap: £27m; Current Price: 40p; Target Price: 52p
From Thursday: Acquisitions expand service offering
The board of Veltyco Group plc (‘Veltyco’) announced last week that it had raised €2.5m through the issue of 5.6m shares via a subscription. The new shares represent c. 7.7% of the Company’s enlarged share capital and is expected to commence trading on 24 April.
Veltyco proposed to acquire controlling stakes in two synergistic businesses, Bet90 an online sports betting brand and www.tippen4you.com (T4U) an online sports-betting forum for a combined consideration of €2.5m.
Veltyco will acquire 51% of Bet90 for a consideration of €2m and build a new online sports betting business focused on the Nordic and South American regions. The Bet90 online platform is being upgraded to a new SBTech sportsbook and is scheduled to go live in June/July 2017. SBTech is arguably best of breed concerning online sportsbooks, the business has over 70 customers using its technology, provides a full omni-channel solution for online, mobile and retail sports, offers betting on over 55 sports, importantly offers over 20,000 in-play events a month and more than 2000 betting markets. This combined with Veltyco’s expertise in online marketing should put the Bet90 brand in good stead to drive online sports betting customers to the Bet90 brand.
T4U is a marketing business which acts as an affiliate for major sportsbook brands, such as Bet365, and has a growing player database of c. 14,000 active players. Veltyco will acquire 51% of T4U for a consideration of c. €0.5m, with an option to acquire the remaining 49% for c. €0.5m in cash based on performance. Though smaller in nature the T4U marketing business is high margin, c. 69%, in nature as per management information to December 2016 and is expected to be earnings enhancing for Veltyco. The profit of €0.2m to December 2016 will add c. 10% to Veltyco’s profit of c. €2m to December 2016 as per Veltyco’s trading statement dated 14 February.
Keras Resources (LON:KRS) – CORP: Pharmanet placing
Market Cap: £6.9m; Current Price: 0.4p
Pharmanet completes A$620,000 placing
Pharmanet Group (PNO.ASX), the ASX company that Keras Resources will reverse its wholly owned gold subsidiary, Keras Gold Australia into, has raised A$620,000.
The proceeds of the placing will support the listing of Keras’ gold projects on the ASX.
Pharmanet is expected to relist on the ASX as Calidus Resources in Q217.
NORTHLAND CAPITAL PARTNERS VIEW: This oversubscribed placing has given Keras Resources management confidence that a larger placing can be completed as part of the ASX transaction. Following the RTO, Keras will initially hold c. 31% of Calidus Resources, 85% of the Nayega Manganese Project, located in Togo and 100% of the five exploration licences applications in West Africa that cover previously discovered, cobalt and nickel mineralisation. The Company is confident these projects offer further upside opportunity to our investors.