Deinove

EG: ALDEI

€19.4m market cap

€1.22 last close

Deinove is a biotechnology company that discovers, develops and produces high value-added compounds using its state-of-the-art bacterial strain selection, banking, fermentation and screening facilities. The most valuable compounds in the pipeline are novel antimicrobials, with lead asset DNV3837 ready for Phase II trial.

Investment summary

With its latest H218 report, Deinove reiterated its focus on the major areas of bioactives and antibiotics. The most recent significant announcement was its collaboration with the Institut Pasteur, which will provide access to a selection of bacterial strains. The upcoming initiation of the company’s first Phase II trial with DNV3837 for C. diff infections is the key milestone this year. According to the released details, the trial is expected to start in mid-2019 in the US and Germany, enrol 40 patients and last for about a year. If positive, the next step would likely be a Phase III trial. Deinove’s commercial activities will continue to focus on the two marketed and several other cosmetics ingredients in development. Our valuation is virtually unchanged at €66m or €4.2/share.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 0.2 (8.5) (9.7) (67.69) N/A N/A
2018A 0.8 (9.4) (10.5) (61.25) N/A N/A
2019E 1.1 (11.8) (13.2) (67.69) N/A N/A
2020E 2.9 (11.0) (12.4) (67.69) N/A N/A
Last updated on 18/04/2019
Industry outlook

Environmentalism will underpin growth in green chemistry and growing antimicrobial resistance to current antibiotics will demand the discovery of new antibiotic structures.

Last updated on 18/04/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (€m) 13.6
Forecast gearing ratio (%) 135
Price performance
%
1m
3m
12m
Actual (24.1) (24.3) (66.7)
Relative* (28.3) (33.4) (67.2)
52-week high/low €3.7/€1.2
*% relative to local index
Key management
Dr Philippe Pouletty Chairman
Emmanuel Petiot CEO
Julien Coste CFO