Immuron (AMC.AX): Full Report, rerating on NASH

Immuron Ltd is focused on oral immunotherapy utilizing polyclonal antibody products that target the human gut immune system. There are a number of key milestones to focus on in the next 6-12 months which includes the publication of interim and topline results of the IMM-124E Phase II trial in NASH and the initiation of a Phase I/II study in CDI. We have increased our valuation calculation following a rerating of both its programs in NASH and CDI. Especially in NASH, the potential deal size has increased following recent activity in the area. In our view, the company’s current total value should be AUD 197 million, or AUD 1.92 per share.

FINANCIAL INSTITUTE IN LIFE SCIENCES 

antonie van leeuwenhoek

(delft, netherlands 1632-1723):

founding father of modern biotechnology


We are proud our firm is named after one of the founding fathers of modern biotechnology: Antonie van Leeuwenhoek. Antonie van Leeuwenhoek was a Dutch scientist that lived in the 17th century: 'The Dutch Golden Age", a period in Dutch history, roughly spanning the 17th century, in which Dutch trade, science, military, and art were among the most acclaimed in the world. He was a Dutch tradesman and scientist and is commonly known as "the Father of Microbiology", and considered to be the first microbiologist.


He is best known for his work on the improvement of the microscope and for his contributions towards the establishment of microbiology. Using his handcrafted microscopes, he was the first to observe and describe single-celled organisms, which he originally referred to as animalculs,and which are now referred to as micro organisms. He was also the first to record microscopic observations of muscle fibers, bacteria, spermatozoa, and blood flow in capillaries (small blood vessels). Leeuwenhoek did not author any books; his discoveries came to light through correspondence with the Royal Society, which published his letters.




 


an unbiased and independent view on companies in the global life sciences sector


Van Leeuwenhoeck Institute (VLI) provides institutional investors and other professional investors with independent, un-biased research on the real value of innovative Life Sciences companies. Many institutional and individual investors will not invest in companies lacking independent third-party research coverage, yet few investment banks cover this sector because it requires dedicated expertise.


In spite of the lack of quality knowledge on an industry-wide basis, there is increased demand for life science-specific market research as investors are seeking information about leading companies in the sector in order to make well-informed investment decisions.

 


RXi Pharmaceuticals (RXII): Research Note

RXi Pharmaceuticals is a clinical stage RNAi company developing innovative therapeutics based on its self-delivering RNAi (sd-rxRNA®) platform. At the beginning of this year the company concluded the acquisition of private biotech company MirImmune which expands RXi's pipeline to include cell-based immunotherapy to treat cancer. Despite a significant unmet need, no clinically-proven prescription anti-scarring treatment is available on the market today.  If approved, RXI-109 could be a “first-in-class” RNAi treatment for the prevention or reduction of post-surgical dermal scarring.Using our valuation model, the company’s current total value should be USD 75-100 million, or USD 4.50-6.00 per share.

MDxHealth (MDXH.BR): Research Note 23 February

MDxHealth published its 2016FY figures which were in line with our expectations. Total revenues increased 70% to USD 30.0 million (2015FY: USD 17.6 million). For 2017, the company expects revenues to increase between 55-75%, which is excluding royalties and milestone payments. Based on the growing income from royalties derived from its out-licensed products, we have increased our valuation from EUR 500 million to EUR 589 million, or EUR 11.83 per share (from EUR 10.00). This represents a substantial upside from the current share price.

Advanced Medical Isotope Corp (ADMD): Research Note

(AMIC) is an US based Life Sciences company that provides an innovative technology for safer and more effective radiation therapies for difficult to treat cancers. Its lead product is Yttrium-90 RadioGel, which is a brachytherapy device comprising highly insoluble Y-90 particles. Considering Y-90 Radiogel’s much higher potential commercial success compared to Sirtex’ SIR-Spheres (with total annual sales of more than AUD 176 million) and the high unmet medical need in several types of cancer, induces us to increase our valuation to USD 25-50 million or USD 0.78-1.57 per share. 

Pharming (PHAR.AS): Turning the Page

Pharming Group is a Dutch based biopharmaceutical company and one of the oldest publicly traded biotech companies in Europe. End of last year, Pharming struck a deal with Valeant to acquire all North American commercialisation rights for its own product, RUCONEST, including all rights in the US. We feel that with the acquisition of the rights for RUCONEST in North America, the company will propel into profitability much quicker than previously expected. Using our valuation model and taking into account the future revenues from RUCONEST for both acute and prophylactic use, the company’s current total value should be EUR 660 million or EUR 0.94 per share.

Resverlogix (RVX.TO): UPDATE Report May 2016

Resverlogix (RVX.TO) is a clinical stage cardiovascular company with an epigenetic platform technology that modulates protein production. In October 2015, Resverlogix initiated a Phase III trial ‘BETonMACE’ with apabetalone (RVX-208). The main objective of the Phase III BETonMACE trial will be to confirm MACE reduction in high risk cardiovascular disease patients with type 2 diabetes and low HDL. Based on our adjusted NPV valuation, we believe Resverlogix is substantially undervalued at the current share price of CAD 1.42. We have increased our valuation of Resverlogix to CAD 8.50 from CAD 5.85 per share. 

Prima BioMed (PBMD, PRR.AX): Ongoing strong data LAG-3

With IMP321, Prima announced interim data from its Phase IIb trail in metastatic breast cancer. Data from all 15 patients in the safety run-in phase demonstrated that IMP321 is safe
and well tolerated at both the 6mg and 30mg dosage levels. The company will now commence the randomised phase of the trial in January 2017. IMP321 has been shown in an open-label Phase I study to be able to double the expected six month response rate in HER-2 negative metastatic breast cancer patients receiving standard-of care paclitaxel; from a 25% historic response rate, to 50% when combined with IMP321.We have increased our valuation of the company to AUD 260 million or AUD 0.127 per share.