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Archive

Northland Capital Partners View on the City - Motif Bio; Active Energy

SECTOR: HEALTHCARE; RENEWABLE ENERGY

MOTIF BIO

(MTFB.L)

SECTOR – HEALTHCARE

RATING – BUY*

MARKET CAP – £94m

CURRENT PRICE – 32p#

ANALYST: VADIM ALEXANDRE

Year-end Dec

2016A

2017A

2018E

2019E

Revenue (£m)

-

-

EBITDA (£m)

(39.71)

(38.02)

Adj. pre-tax Profit (£m)

(40.32)

(44.79)

Adj. EPS (p)

(34.60)

(19.35)

Under

review

DPS (p)

-

-

Net Cash/(Debt) (£m)

15.53

(4.53)

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

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

Iclaprim data presented at the ASM 2018 Conference

NORTHLAND VIEW

  • Motif Bio announced that pooled efficacy and safety data from its two successful Phase 3 trials testing iclaprim, its lead antibiotic drug candidate, in patients with acute bacterial skin and skin structure infections (ABSSSI), was presented at the American Society of Microbiology (ASM) Microbe 2018 meeting in Atlanta, USA.
  • The pooled data demonstrated that iclaprim was non-inferior to vancomycin, the current standard-of-care antibiotic for ABSSSI, and was well tolerated in this patient population. The data has been published in the peer-reviewed journal, International Journal of Antimicrobial Agents.
  • Gary Hock Professor of Duke University and a principal investigator in the REVIVE-2 trial commented, “Iclaprim, if approved, may offer advantages over standard of care antibiotics in hospitalised ABSSSI patients, particularly those with renal impairment and/or diabetes."

The American Society for Microbiology is the largest single life science society, composed of over 50,000 scientists and health professionals. The ASM 2018 Conference presented an additional opportunity for the Company to share its trial data for iclaprim to an expert scientific and clinical audience. In early Q2 2018, Motif initiated an NDA rolling submission with the FDA, regarding the use of iclaprim for ABSSSI in the US, and we expect an approval decision before the end of Q1 2019.

COMPANY DESCRIPTION

Clinical stage biopharmaceutical company specialising in the development of novel antibiotics.

ACTIVE ENERGY GROUP (LON:AEG)

SECTOR – RENEWABLE ENERGY

RATING – CORP*

MARKET CAP – £35.4m

CURRENT PRICE – 3.6p#

ANALYST – MIKE JEREMY

Year-end Dec

2015

2016

Revenue (US$m)

24.38

19.20

No forecasts provided

EBITDA (adj) (US$m)

(1.63)

1.27

Adj. pre-tax Profit (US$m)

(3.39)

(0.95)

Adj. EPS (US$c)

(0.65)

(0.13)

DPS ($c)

-

-

Net Cash/(Debt) (US$m)

(6.79)

(5.52)

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

41.5

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited Acts as Nomad to Active Energy Group and therefore this information should be viewed as a Marketing Communication.

MoU with Young Living Farm for PeatSwitch™ technology

NORTHLAND VIEW

  • Active Energy has signed a Memorandum of Understanding with Young Living Farms (YLF) for the proposed purchase and construction of YLF’s first Biomass Beneficiation facility using AEG’s PeatSwitch™ technology to produce an organic, environmentally-friendly peat replacement, for its Mona, Utah, farm. YLF intends to pay US$3.4m in cash for the facility, in four instalments. The plant is expected to be operational by year-end, and YLF will assess the feasibility of additional plants for its other facilities.
  • The plant will use waste by-product from YLF's essential oil production and release water, currently an issue in YLF’s processes, whilst the PeatSwitch™ process will yield a soil amendment product to be reintroduced into YLF's crop production cycle. An EPC contractor is now in place to manage the Utah facility for both parties, with engineering work about to commence.

This announcement represents practical development of the agreement with YLF announced on 28th February to supply 6,500 tonnes of soil amendment product using waste from YLF’s processes based on AEG’s CoalSwitch™ technology, and plans for the facility in Mona and three possible locations in the US and Canada.

Established in 1994 and based in Lehi, Utah, Young Living Farms – see: www.youngliving.com – cultivates herbs such as lavender, peppermint, melissa and sage for the production of essential oils, and promotes wellness therapy through a network of organic farms in USA, Canada, S. America, Australia, Europe and Japan. With 3,000 employees active in 22 markets, YLF reported 2017 revenue of over US$1.5b.

COMPANY DESCRIPTION

Active Energy Group (AEG) is an international, vertically-integrated forestry management and renewable resource energy provider. The group combines management of forestry resources with the commercial development of a proprietary solution (CoalSwitch™) to the integration of wood-based (biomass) fuel into existing coal-fired thermal power plants.

Evgen Pharma (LON:EVG)

SECTOR – HEALTHCARE

RATING – BUY*

MARKET CAP – £23.6m

CURRENT PRICE – 25.3p#

TARGET PRICE – 113p

ANALYST – VADIM ALEXANDRE

Year-end Dec

2017A

2018E

2019E

2020E

Revenue (£m)

-

-

-

7.50

EBITDA (£m)

(3.64)

(3.49)

(4.49)

3.92

Adj. pre-tax Profit (£m)

(3.64)

(3.49)

(4.42)

3.90

Adj. EPS (p)

(4.19)

(2.81)

(3.34)

4.27

DPS (p)

-

-

-

-

Net Cash/(Debt) (£m)

3.91

3.24

(0.54)

3.95

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