Medlab Clinical

AU: MDC

Market CapAU$55m

Last Close AU$0.16

Medlab Clinical is an Australian biotechnology company that is developing therapeutics using its proprietary delivery platform NanoCelle. Its most advanced programme is in cancer pain management with lead drug candidate NanaBis, a medicinal cannabis product for cancer-related bone pain.

Investment summary

Medlab’s proprietary platform, NanoCelle, is a patented nanomicellar formulation that can improve the delivery of drugs. Medlab’s lead product is NanaBis, a combination of THC and CBD (1:1) cannabinoids encapsulated in NanoCelle particles, which enable a convenient buccal spray formulation. A recent breakthrough was Medlab’s announcement that it had successfully produced a synthetic version of NanaBis, which will allow it to move away from a botanical extract. Once the product reformulation is completed (guidance is eight to 10 months), NanaBis will re-enter clinical development (potentially Phase III) as a fully synthetic, non-opioid pain relief drug optimised with proprietary delivery technology aimed at a vast market.

Y/E Jun	Revenue (A$m)	EBITDA (A$m)	PBT (A$m)	EPS (c)	P/E (x)	P/CF (x)
2019A	8.1	(7.9)	(8.2)	(3.9)	N/A	N/A
2020A	5.8	(12.3)	(13.5)	(5.9)	N/A	N/A
2021E	9.3	(9.4)	(10.2)	(3.3)	N/A	N/A
2022E	9.5	(10.1)	(10.9)	(3.2)	N/A	N/A

Industry outlook

There is a growing consensus in the medical community that medicinal cannabis has a place in chronic pain management. With the opioid crisis unravelling, we believe support for non-opioid pain killers from various stakeholders will only grow. Many products, however, are poorly differentiated and difficult to protect from a commercial perspective. Medlab’s strategy is to develop differentiated, novel premium cannabinoid products.

Last updated on 20/10/2021