POLAREAN IMAGING (LON:POLX)
SECTOR – HEALTHCARE
RATING CORP*
MARKET CAP – £11.7m
CURRENT PRICE – 14.9p#
ANALYST – BARRY GIBB
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.
Half-year report - Phase III clinical trials to commence in August
NORTHLAND VIEW
§ In-line with management expectations, revenues for the first half increased from US$0.21m to US$0.75m, with gross profits rising to US$0.47m (H117: US$0.17m). Sales were made on a research-use-only basis to academic institutions in the US and Europe, where 15 of Polarean’s Xenon gas polarisers are now installed. While gross operating margins (including grants) were over 70%, a sizeable uplift in administrative expenses, principally reflecting fees associated with the Group’s AIM admission, saw overall loss before tax increase to £3.1m from £1.4m in H117. Cash controls remained robust, with a period-end cash/near-cash position of US$1.22m being bolstered by July’s placing that raised a further £0.8m (gross).
§ Post period-end, Polarean successfully completed a pilot study in anticipation of the commencement of the Phase III clinical trials, which are expected to commence this month and complete in Q319E. These Phase III trials will evaluate two patient populations - candidate patients for lung lobe resection, and candidates for lung transplant procedures - and is expected to include a total of 80 patients, across two sites: the University of Virginia and Duke University. Management currently expect data collection for the Phase III Trials to complete around this time next year and if successful, an NDA submission for the same claim as the trial comparator, 133Xe scintigraphy, would follow soon after. The Group also received a US Patent Notice of Allowance for a technology which increases polarisation levels for the Company’s 129-Xenon gas hyper-polarisation platform for MRI.
The successful completion of the pilot study reduces prospective study design risk for the upcoming Phase III trials. Given a US market for pulmonary disease estimated at US$150bn and affecting nearly 40mAmericans, Polarean’s opportunity to satisfy a significant unmet need for non-invasive, quantitative, and cost-effective image-based diagnosis technology and lung disease monitoring is clearly significant. We expect this to be borne out by the forthcoming clinical trials and subsequent commercial launch in 2020E.
COMPANY DESCRIPTION
Polarean Imaging is a healthcare technology company with a proprietary drug-device combination in late-stage clinical trials.
SECTOR – MINING
RATING – CORP*
MARKET CAP – £4.4m
CURRENT PRICE – 0.29p#
ANALYST – LIAM GASCOIGNE-COHEN
Year-end Dec
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(3.2)
(1.2)
Adj. pre-tax Profit (£m)
(3.2)
(1.2)
Adj. EPS (p)
(0.5)
(0.1)
DPS (p)
-
-
Net Cash/(Debt) (£m)
0.1
0.8
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 Nomad and Broker to Edenville Energy and therefore this information should be viewed as a Marketing Communication.
Coal supply contract signed with East African industrial group
NORTHLAND VIEW
Edenville Energy plc announced that it has signed a contract with an East African industrial group for the supply of up to 4,000 tonnes of coal per month on the terms set out below.
§ The contract duration is for a period of two years with coal to be supplied with a gross calorific value greater than 4,800 kCal/kg.
§ The pricing, based on calorific value of the coal, has been agreed and is based on local commercial rates.
Edenville has been working with the industrial group throughout 2018 to optimise the product and transport options. The upgrades currently being undertaken at Edenville’s Rukwa Coal Project in southwest Tanzania, will ensure this contract along with other customer deliveries can be met.
COMPANY DESCRIPTION
Edenville Energy is moving the Rukwa Coal Project towards near-term production alongside advancing its Coal to Power Project.