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Archive

Northland Capital Partners View on the City - Immupharma (LON:IMM); Skinbiotherapeutics (LON:SBTX)

SECTOR: HEALTHCARE

IMMUPHARMA (IMM.L)

SECTOR – HEALTHCARE

RATING – CORP*

MARKET CAP – £40m

CURRENT PRICE – 27.6p

ANALYST – VADIM ALEXANDRE

Year-end Dec

2015A

2016A

2017A

2018E

Revenue (£m)

0.1

0.2

0.2

EBITDA (£m)

-

-

-

Adj. pre-tax Profit (£m)

(4.5)

(6.3)

(7.0)

Adj. EPS (p)

(4.4)

(4.5)

(4.8)

Under

DPS (p)

-

-

-

Review

P/E (x)

-

-

-

Dividend yield (%)

-

-

-

EV/EBITDA (x)

-

-

-

SOURCE: Northland Capital Partners Limited estimates. Priced at prior day market close. *Northland Capital Partners acts as Nomad and Joint Broker to ImmuPharma and therefore this information should be viewed as a Marketing Communication.

Update on Phase 3 trial data and Final Results

NORTHLAND VIEW

  • ImmuPharma announced further data analysis on its Phase 3 trial data, as well as its final results for FY2017.
  • ImmuPharma previously announced (17th April 2018) that across the entire trial population, patients who had anti-dsDNA autoantibodies (‘antibody positive’), Lupuzor™ demonstrated a superior, yet non-significant, response rate over placebo (61.5% vs 47.3%, p=0.0967). Anti-dsDNA autoantibodies are a recognised biomarker for Lupus.
  • Today the Company announced further data analysis regarding the effect of Lupuzor™ on antibody positive patients. Within the European cohort (consisting of 130 patients across Europe and Mauritius) there were 79 patients (60.8%) who were antibody positive. Within the antibody positive group, those tested with Lupuzor™ plus standard of care (SoC) had a statistically significant reduction in disease activity compared to the placebo plus SoC group (71.1% vs 48.8%, p=0.0218).
  • In the US cohort (72 patients) there were 28 patients who were antibody positive. However, the placebo plus SoC group showed greater disease reduction (6 patient responders) to Lupuzor plus SoC (5 patient responders) (35.7% vs 42.8%). This may require further analysis to explain the different result compared to the European cohort, but it is important to note this was a small sample size.
  • These findings are a positive for the Company and the potential commercial value of Lupuzor™. The anti-dsDNA autoantibody is a significant biomarker within the lupus population and indicates a potential target population for Lupuzor™. The Company intends to continue to analyse the trial data and consult with its scientific and regulatory experts to discuss next steps. Meanwhile the company is continuing a Lupuzor™ extension study with 44 patients currently recruited and results expected in 2019. This is expected to provide further data on the safety and efficacy of Lupuzor™.
  • Immupharma’s final year results were in-line with expectations. The Company had a cash position at year-end of £2.7m, which was augmented by a placing of £10m in January 2018. Loss for the period was £6.2m (31 December 2016: £5.3m).

COMPANY DESCRIPTION

ImmuPharma PLC is a late clinical stage drug development business specialising in the area of autoimmune disease.

SKINBIOTHERAPEUTICS (SBTX.L)

SECTOR – HEALTHCARE

RATING – CORP*

MARKET CAP – £20m

CURRENT PRICE – 17p#

ANALYST – VADIM ALEXANDRE

Year-end Jun

2016A

2017A

Revenue (£m)

x

x

EBITDA (£m)

(0.0)

(0.7)

Adj. pre-tax Profit (£m)

(0.0)

(0.7)

Adj. EPS (p)

(0.03)

(1.11)

DPS (p)

x

x

No forecasts provided

Net Cash/(Debt) (£m)

0.3

4.0

P/E (x)

x

x

Dividend yield (%)

x

x

EV/EBITDA (x)

x

x

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Joint Broker to SkinBioTherapeutics and therefore this information should be viewed as a Marketing Communication.

SkinBioTherapeutics involved in a c.£600k research grant

NORTHLAND VIEW

  • SkinBio announced it is the industrial partner for a c.£600k grant awarded by the Biotechnology and Biological Sciences Research Council (BBSRC) to The University of Manchester.
  • The grant of c.£600k provides the University with non-dilutive funding for up to three years to investigate how ageing affects the skin and its microbiome. The funding will enable the University to carry out research which could lead to the development of novel ways to improve the health of the skin microbiome during ageing and potentially prevent age-related skin conditions and promote long-term skin health.
  • SkinBio is supporting the programme as the industrial partner and has first refusal on any IP generated by the project.
  • Dr Catherine O'Neill, CEO of SkinBio commented: "We have a long-standing relationship with the University, and I am delighted this will continue through this latest collaboration. It is testament to both teams that we have been successful with such a prestigious award.”

Grant applications are extremely competitive and this award is a strong external validation of the capabilities of both the University and SkinBio. With SkinBio having the right of first refusal to any IP generated, we believe the Company is in a good position to develop any relevant findings to extend its current skin-health portfolio.

COMPANY DESCRIPTION

SkinBio Therapeutics is a preclinical healthcare company focusing on skin health.

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