Destiny Pharma

LN: DEST

£16.9m market cap

38.5p last close

Destiny Pharma is dedicated to the discovery, development and commercialisation of new antimicrobial agents that have unique properties to improve outcomes for patients. Destiny’s first product, XF-73, is about to start a US Phase IIb clinical study.

Investment summary

Destiny Pharma is a virtual UK antimicrobial discovery company in Phase II clinical studies in the US. Destiny’s XF series of antimicrobial agents are novel, rapidly bactericidal and not associated with bacterial resistance, which typically limits the use of other antimicrobial agents. This makes Destiny’s lead product, XF-73, ideal for the prevention of post-operative infections, an indication in which no other drugs have been approved. The activity of the XF-series against resistant bacteria may also have utility in the treatment of infections with a biofilm component like cystic fibrosis. We forecast Destiny’s cash reach well into 2020, with Phase IIb results for XF-73 around the end of 2019.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 0.0 (2.5) (3.2) (8.45) N/A N/A
2018A 0.0 (5.3) (6.0) (11.86) N/A N/A
2019E 0.3 (8.6) (8.5) (17.69) N/A N/A
2020E 0.0 (4.7) (4.7) (7.06) N/A N/A
Last updated on 21/08/2019
Industry outlook

While there are valid commercial criticisms of antibiotic development, the growing problem of antimicrobial resistance is making non-dilutive and alternative funding methods available to make antimicrobial drug development easier on companies. In addition, resistance has not been observed against Destiny’s agents and their new preventative indications make antibiotic stewardship less of an issue.

Last updated on 21/08/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (£m) 4.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (43.4) (51.3) (59.9)
Relative* (41.2) (50.4) (57.7)
52-week high/low 96.0p/38.5p
*% relative to local index
Key management
Neil Clark CEO
Shaun Claydon CFO
Dr. William Love Founder and Chief Scientific Officer