SECTOR: HEALTHCARE
N4 PHARMA (LON:N4P)
SECTOR – HEALTHCARE
MARKET CAP – £24.3m
CURRENT PRICE – 26.8p#
ANALYST – VADIM ALEXANDRE
Year-end Dec
2016A
2017A
2018E
2019E
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
-
-
Adj. pre-tax Profit (£m)
(0.19)
(0.90)
Adj. EPS (p)
(2.0)
(1.3)
DPS (p)
-
-
Net Cash/(Debt) (£m)
0.02
1.33
P/E (x)
-
-
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. This information should be viewed as a Marketing Communication.
Nuvec® DNA/RNA delivery system program update
NORTHLAND VIEW
- N4 Pharma announced an update on its Nuvec® program, the Company’s novel therapeutic nanoparticle platform, designed to deliver DNA/RNA into cells to generate proteins. The Company is working with contract research organisations and collaborators to generate data to determine potential therapeutic areas for the Nuvec® system.
- MedImmune UK update: In February 2018, N4 Pharma was awarded a grant from Innovate UK to co-fund a collaboration with MedImmune UK, a leading global biologics R&D company, and explore the manufacture of a prototype nanomedicine using the Nuvec® system. The Nuvec® team is making significant progress in developing manufacturing methods for Nuvec® particles loaded with therapeutic DNA/RNA. Once completed, MedImmune intends to conduct studies that demonstrate the capability of delivering the system to induce immune responses, the results of which are expected in Q4 2018.
- Additional R&D pipeline: N4 Pharma aims to conduct studies identifying human cell-types that are most responsive to transfection by Nuvec®. Transfection is the process of introducing DNA/RNA into a cell to produce proteins. The company will also continue to optimise the manufacture of Nuvec® nanoparticles and perform stability studies which will be informative regarding formulation.
Today’s announcement demonstrates the Company is making good progress in its Nuvec® division. Results from these studies are expected in Q4 2018 and should help identify potential target indications for the system. N4 Pharma’s reformulation business also continues to make good progress. Sildenafil MR, the company’s generic reformulation of Viagra, the erectile dysfunction drug, commenced a proof-of-concept clinical trial in April 2018 with results expected in August 2018.
COMPANY DESCRIPTION
Specialist pharmaceutical company which reformulates existing drugs and vaccines to improve their performance
SECTOR – HEALTHCARE
RATING – BUY*
MARKET CAP – £14.6m
CURRENT PRICE – 39.5p#
TARGET PRICE – 100p
ANALYST – BARRY GIBB
Year-end Dec
2016A
2017A
2018E
2019E
Revenue (£m)
14.28
16.05
17.80
19.55
EBITDA (£m)
0.80
1.86
2.35
3.16
Adj. pre-tax Profit (£m)
(1.11)
0.06
0.51
1.37
Adj. EPS (p)
(3.76)
(1.00)
0.18
2.36
DPS (p)
-
-
-
-
Net Cash/(Debt) (£m)
(5.15)
(6.32)
(5.94)
(4.51)
P/E (x)
-
-
n/a
16.7
Dividend yield (%)
-
-
-
-
EV/EBITDA (x)
26.9
12.1
9.4
6.4
SOURCE: Northland Capital Partners Limited estimates. #Priced at market close, *Northland Capital Partners Limited acts as Nomad and Joint Broker to Venture Life Group and therefore this information should be viewed as a Marketing Communication.
Increased distribution of UltraDEX in Boots Chemists, UK
NORTHLAND VIEW
- Venture Life announced increased distribution in the UK with Boots for its UltraDEX range.
- Listings of UltraDEX products with Boots in the UK will increase by 46% from July 2018 onwards, its highest recorded level in Boots. Added to all current existing listings this creates the highest level of total listings in the UK market since the brand launched 25 years ago. In addition to increasing the presence of some of the existing products, Boots will be launching both of the newly developed UltraDEX products: UltraDEX One GO™, and the new UltraDEX Fresh Breath Essential Kit.
- UltraDEX One GO™, which also recently launched in all 793 Superdrug stores, is an innovative new product that delivers the UltraDEX fresh mint mouthwash in the form of single use sachets, for convenient on-the-go use. The UltraDEX Fresh Breath Essential Kit comprises four different UltraDEX products in one package, designed to introduce the customer to a daily regimen of fresh breath and oral care.
- In support of this launch, promotion of UltraDEX One GO™ via above-the-line advertising will appear on the London Underground platform posters from mid-June and will run for two weeks. With management keen to exploit the opportunity for the UltraDEX Sensitive range outside the UK, the product has now also been granted a patent in Canada.
UltraDex is powering the Group’s own-brand sales. Taken together, additional listings achieved over the past year provide a 49% increase in the Group’s overall UK pharmacy and retail store exposure for the product range. Management also appears confident that it can successfully broaden the brand’s distribution into new international territories.
COMPANY DESCRIPTION
Venture Life Group plc is a consumer healthcare company. The Group develops, manufactures, and commercialises self-care products which target the ageing population.