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Northland Capital Partners View on the City - Hemogenyx

HEMOGENYX PLC (LON:HEMO)

SECTOR – HEALTHCARE

RATING – CORP*

MARKET CAP – £10.9m

CURRENT PRICE – 2.9p#

ANALYSTS: LIAM GASCOIGNE-COHEN

Year-end Dec

2016A

2017A

2018E

2019E

2020E

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(0.5)

(2.3)

Pre-tax profit (£m)

(0.5)

(2.4)

EPS (p)

(0.00)

(0.01)

DPS (p)

-

-

Net Cash/(Debt) (£m)

(0.2)

1.9

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

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

Initiation of research: Disrupting current blood disease therapy (Note attached)

NORTHLAND VIEW

Hemogenyx is a biotechnology company quoted on the LSE Standard List. The Company is developing novel therapies for blood diseases which aim to offer a safer and more accessible patient pathway than current practice. Although the products are at the preclinical stage, the Company is already generating revenue through multiple collaborations with biopharmaceutical companies.

  • Modular platform technology: The Company is developing two products including an immunotherapy product (CDX Ab) for patient conditioning and a cell therapy (Hu-PHEC) for bone-marrow transplants.
  • Clear Milestones: With an established proof-of-principle for its CDX antibody platform, the Company is targeting the start of clinical trials in 2019.
  • Revenue-generating collaborations: With collaboration agreements signed across its pipeline, the Company is leveraging its platforms with large industry players to accelerate development and share the cost of development. This represents a strong validation of the Group’s products.

Although the Company has demonstrated strong progress across its pipeline, the share price remains below its IPO price of 3.5p/share. With multiple collaboration agreements and investment from industry we view the Company as undervalued.

COMPANY DESCRIPTION

Preclinical stage biotechnology company focused on the development of novel therapies for blood diseases.