IMMUPHARMA (LON:IMM)
SECTOR – HEALTHCARE
RATING – BUY*
MARKET CAP – £108m
CURRENT PRICE – 82p#
TARGET PRICE – 181
Completion of Sharing Agreement
NORTHLAND VIEW
ImmuPharma announced the completion of the Sharing Agreement entered into with Lanstead Capital L.P. ('Lanstead') in February 2016 ("Sharing Agreement").
As announced on 5 February 2016, Lanstead subscribed for £4.4 million of new ordinary shares in ImmuPharma, with both parties also entering into the Sharing Agreement.
All 18 settlements of the Sharing Agreement have now been completed.
Through both the subscription and Sharing Agreement, ImmuPharma has received a total of just over £5.0 million from Lanstead, with a net gain of £0.6 million more than originally subscribed.
The Sharing Agreement has been a big success for ImmuPharma. Thanks to this agreement the Group secured additional funds over and above the original subscription amount. Lanstead also indicated that it "is pleased to remain a supportive shareholder of ImmuPharma and looks forward to the Company's further progress." We expect top line results from ImmuPharma’s flagship Phase 3 trial on Lupuzor in Q1 2018.
COMPANY DESCRIPTION
ImmuPharma PLC is a late clinical stage drug development business specialising in the area of autoimmune disease.
MOTIF BIO (LON:MTFB)
SECTOR – HEALTHCARE
RATING – BUY*
MARKET CAP – £97m
CURRENT PRICE – 37p#
Positive results from final pivotal Phase 3 trial on iclaprim
NORTHLAND VIEW
Motif Bio Plc announced positive topline results for its flagship antibiotic, iclaprim, in its REVIVE-2 Phase 3 study.
REVIVE-2 was a global Phase 3 clinical trial evaluating the investigational drug candidate iclaprim in patients with acute bacterial skin and skin structure infections (ABSSSI).
Iclaprim met the primary endpoints of non-inferiority to vancomycin, the current standard of care.
The drug also met several secondary endpoints. Finally, iclaprim was well tolerated in the study.
Today’s announcement marks the biggest milestone achieved by Motif to date. The Group has demonstrated that iclaprim is both effective and safe in two pivotal Phase 3 trials. We now expect an NDA submission to the FDA to take place in Q1-2018 and the drug to be approved for sale in the US in H2-2018. Of note, Motif’s closest peer, NASDAQ-listed Paratek (PRTK)—which is at a similar stage in its product development—has a market capitalisation of c. $710m.
COMPANY DESCRIPTION
Clinical stage biopharmaceutical company specialising in the development of novel antibiotics.
ADEPT TELECOM (LON:ADT)
SECTOR – TELECOMS
RATING – BUY*
MARKET CAP – £67.6m
CURRENT PRICE – 285p#
TARGET PRICE – 400p
AGM statement: interim dividend raised by 13%
NORTHLAND VIEW
Ahead of its AGM this morning, AdEPT Telecom reports that in the 6 months to 30 September 2017 it has “continued to make considerable progress” in its transformation from telecoms services towards provision of unified communications and IT services. Interim results will be published on 14 November.
Ahead of interims, the Board of AdEPT has decided upon a H117 dividend of 4.25p/share, an increase of +13.3%YoY (H116: 3.75p). This will absorb £1.0m of cash, payable on 9 April 2018 to shareholders registered as of 16 March 2018.
In respect of group acquisitions, AdEPT notes that Comms Group (acquired in May 2016) “met its performance targets in the 12-month performance-based earn-out period to 31 May 2017. As a result, the vendors hit the maximum earn-out of £3.5 million which was paid in July 2017”.
AdEPT reports that recently-acquired schools IT provider Atomwide reported March 2017 revenue of £7.5m, operating profit of £1.9m and PBT of £1.9m. AdEPT notes: “As this acquisition was made part-way through the current financial year, it will therefore be sometime before the positive impact of this acquisition on our run-rate revenues and EBITDA will show in our reported numbers”.
AdEPT currently trades at an 11% discount to its AIM peers EV/EBITDA average (+1 year: 9.7x) and 40% discount on a PE basis. It offers 19.6% EBITDA CAGR (2016-2019E), augmented by acquisitions associated with its transition towards unified communications provision. Our rating remains Buy.
COMPANY DESCRIPTION
AdEPT Telecom is an independent unified communications and IT services provider to the B2B market and public sector. The Company is active in acquisitions and has an experienced integration team. It has particular strength in providing dedicated service management for multi-site businesses and public sector organisations.
SECTOR – HEALTHCARE
RATING – BUY*
MARKET CAP – £15m
CURRENT PRICE – 14.6#
TARGET PRICE – 97p
First European patent granted for SFX-01
NORTHLAND VIEW
Evgen has been granted its first European patent for its lead product, SFX-01, synthetic version of the sulforaphane, a naturally-occurring compound found in brassica vegetables.
The patent (No. EP2854861), entitled Method of Synthesising Sulforaphane, covers the manufacturing and scale-up of SFX-01 and runs until May 2033.
The patent can be view here: https://register.epo.org/application?number=EP13726846&tab=doclist.
Counterparts of this patent have been previously granted in the United States, Australia and Japan. Evgen also has a composition of matter patent pending in Europe.
This is the Company’s eight patent granted this year and underlines the growth of the Company’s IP estate. The granting of this core manufacturing patent in Europe extends the IP estate of SFX-01 into a key market and further strengthens Evgen’s global IP portfolio. Strong IP protection surrounding product manufacture and upscale is vital for successful commercialisation of SFX-01, a product which is currently in two phase 2 trials (breast cancer and subarachnoid haemorrhage).
COMPANY DESCRIPTION
Evgen Pharma is a clinical stage drug development company focused on the treatment of cancer and neurological conditions.
SECTOR – MINING
RATING – CORP*
MARKET CAP – £8m
CURRENT PRICE – 0.71p#
Subscription for £1.25m
NORTHLAND VIEW
Edenville Energy has raised £1.25m through the issue of 208,333,333 shares at a price of 0.6p per share together with a one-for-two warrant at an exercise price of 0.8p per warrant.
Proceeds to be used to: complete construction and transport logistics for the Rukwa Coal Project; working capital and to fund the increase in production over the next six months.
Production of washed coal expected to start next week.
Following admission the Company will have 1,336,227,798 shares in issue
Edenville Energy had made rapid progress at the Rukwa Coal Project. The Company plans to target initial production of 5,000t of washed coal in October with a steady ramp up to 10,000t per month by January 2018.
COMPANY DESCRIPTION
Edenville Energy is moving the Rukwa Coal Project towards near-term production alongside advancing its Coal to Power Project.