Mendus

OMX: IMMU

Market CapSEK429m

Last Close SEK2.15

Mendus is a clinical-stage immunoncology (IO) company based in Sweden and the Netherlands. The company specialises in allogeneic dendritic cell (DC) biology and currently has two lead, cell-based, off-the-shelf therapies for haematological and solid tumours.

Investment summary

As of 23 June 2022, Immunicum will be known as Mendus, after management announced a corporate rebranding. The company is focused on the development of DCP-001, a cancer relapse vaccine, in acute myeloid leukaemia (AML) maintenance therapy and high-grade serous ovarian cancer. Near-term, median relapse-free survival (RFS) and overall survival (OS) data from the Phase II ADVANCE II study in AML maintenance (expected in Q422) represent the main catalyst for Mendus, in our view. In addition, the company will begin investigating its dendritic cell immune primer, ilixadencel, for which it recently received FDA orphan drug designation, in the treatment of gastrointestinal stromal tumours (GISTs). With a cash position of SEK122.9m at end-Q122, we estimate the company is sufficiently funded to end-FY22. We value Mendus at SEK1.78bn or SEK8.93/share (previously SEK1.95bn or SEK9.76/share).

Y/E Dec	Revenue (SEKm)	EBITDA (SEKm)	PBT (SEKm)	EPS (fd) (öre)	P/E (x)	P/CF (x)
2020A	0.0	(85.1)	(89.2)	(117.1)	N/A	N/A
2021A	0.0	(130.1)	(133.4)	(73.0)	N/A	N/A
2022E	1.9	(132.9)	(133.7)	(67.1)	N/A	N/A
2023E	0.0	(136.1)	(137.0)	(68.7)	N/A	N/A

Industry outlook

IO is a frenetic pharmaceutical development area with many clinical combination studies being conducted by pharmaceutical and biotech companies. Investors should expect relatively rich newsflow from this subsector over the next few years.

Last updated on 30/06/2022