SECTOR – HEALTHCARE
RATING – BUY*
MARKET CAP – £16.4m
CURRENT PRICE – 17.5p#
TARGET PRICE – 113p
ANALYST – BARRY GIBB
Year-end March
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
P/E (x)
-
-
-
4.2
Dividend yield (%)
-
-
-
-
EV/EBITDA (x)
-
-
-
3.2
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Broker to Evgen Pharma and therefore this information should be viewed as a Marketing Communication.
From yesterday: Confident AGM Statement, All Resolutions Passed
NORTHLAND VIEW
- Evgen Pharma held its Annual General Meeting in Manchester yesterday. All resolutions were duly passed.
- The Company's Chairman, Barry Clare, noted: "The current financial year has seen major progress with SFX-01, our lead product candidate, which continues to progress through two Phase II trials in metastatic breast cancer and subarachnoid hemorrhage, a type of stroke.”
- The Company announced this week that it has successfully met the main objectives of its STEM Phase IIa trials testing SFX-01 in metastatic breast cancer.
- In June 2018, Evgen announced highly-encouraging interim data for SFX-01 in the STEM trial. The data indicated that SFX-01 demonstrated signs of anti-tumour activity in a patient group where other treatment options had failed.
- While the final read-out details are still awaited, Management can now anticipate the likely next step for SFX-01 in metastatic breast cancer as a placebo-controlled trial with SFX-01 in combination with second-line hormone therapy in patients who have failed on CDK4/6 inhibitors (gold standard treatment).
- Meanwhile, patient recruitment continues on track in the subarachnoid hemorrhage SAS Phase IIb trial with all three sites recruiting, including the most recent site addition, St Bartholomew's Hospital, London.
The final read-outs from both trials are expected around the end of this calendar year, marking important value inflection points in the clinical development of SFX-01. Recognising that, the Group holds exclusive worldwide license to an IP estate covering composition, manufacturing and a series of novel derivatives of sulforaphane (asserting a leadership position around this new drug class), the prospect of monetization through partnership with big pharma appears to be drawing ever closer.
COMPANY DESCRIPTION
Evgen Pharma is a clinical stage drug development company focused on the treatment of cancer and neurological conditions
POLAREAN IMAGING (LON:POLX)
SECTOR – HEALTHCARE
RATING CORP*
MARKET CAP – £12.6m
CURRENT PRICE – 16p#
ANALYST – LIAM GASCOIGNE-COHEN
Year-end Dec
2017A
Revenue ($m)
1.24
EBITDA ($m)
(3.55)
Adj. pre-tax Profit ($m)
(3.96)
Net Cash/(Debt) ($m)
(0.14)
No forecasts provided
SOURCE: Northland Capital Partners Limited estimates.*Northland Capital Partners Limited provides acts as Nomad and Broker to Polarean Imaging Ltd. and therefore this information should be viewed as a Marketing Communication.
Company Update
NORTHLAND VIEW
- Polarean Imaging announced an update regarding a the allowance of a new patent, a pilot study performed in preparation for the Company’s Phase 3 trials, and an update on the timing of the trials.
- Patent allowance: The Company has received a Notice of Allowance on a patent application on which it has exclusive rights. The patent, entitled Hyperpolarized Noble Gas Production Systems with Nanocluster Suppression, Detection, and/or Filtering and Related Methods and Devices, increases polarisation levels for the Company’s 129-Xenon gas hyper-polarisation platform for MRI. A Notice of Allowance is issued by the US Patent Trademark office to indicate they believe the invention qualifies for a patent.
- Completion of Pilot Study: The Company completed a Pilot Study which was conducted to test the Phase 3 trial design and the analytical methods to be used in the Phase 3 trials. The Pilot Study enrolled ten patients with COPD who underwent lung imaging using both 129-Xenon gas MRI (the Company’s novel imaging technique) and 133Xe scintigraphy (a comparator technique). The Pilot Study has given the Company further validation that the Phase 3 trial design should accurately reflect the comparative values of 129Xe MRI versus 133Xe scintigraphy.
- Phase III Clinical Trials update: The Phase 3 trials are now scheduled to initiate in mid-August 2018, a minor delay from expected initiation in mid-July. The trials will test if Polarean’s 129-Xenon gas MRI is non-inferior to 133Xe scintigraphy. The trial is structured to evaluate two patient populations (lung lobe resection and lung transplant procedures) and should total 80 patients in aggregate. The trials are set to take place at University of Virginia and Duke University.
The completion of the Pilot Study reduces study design risk for the Phase 3 trials, which are expected to read-out in Q319. The Phase III trials are a key milestone for Polarean and, if successful, should allow the Company to launch its platform into the US clinical market. Although yet to receive clinical-approval, Polarean has already sold several polarisers to medical research institutes.
COMPANY DESCRIPTION
Polarean Imaging is a healthcare technology company with a proprietary drug-device combination in late-stage clinical trials.