Nuevolution

OMX: NUEV

SEK668.6m market cap

SEK13.5 last close

Nuevolution is a Copenhagen-based biopharmaceutical company. Its patent protected Chemetics drug discovery platform enables the selection of drugs to an array of tough-to-drug disease targets. To date it has entered into 17 agreements with major pharmaceutical companies.

Investment summary

Positive progress in Nuevolution’s RORγt partnership with Almirall has triggered a €1m milestone payment (SEK10.5m) and we continue to forecast that it will enter the clinic in 2019. FY18 was defined by the progress in the Amgen partnership as it opted in for two oncology programmes, further validating Nuevolution’s Chemetics technology. In Nuevolution’s BET-BD1 programme, a development candidate (NUE20798) has been nominated; data in animal cancer models highlight that it may have synergistic effects in combination with immunotherapies. The FY18 net loss was down year-on-year to SEK99.7m (from SEK117.5m) as a result of lower R&D costs. Net cash of SEK108m (FY17: SEK110.6m) should fund operations into 2020. We value Nuevolution at SEK20.7/share.

Y/E Dec
Revenue (SEKm)
EBITDA (SEKm)
PBT (SEKm)
EPS (öre)
P/E (x)
P/CF (x)
2017A 12.2 N/A (123.8) (269.0) N/A N/A
2018A 11.0 N/A (107.3) (209.3) N/A N/A
2019E 202.4 N/A 87.2 107.5 12.6 11.8
2020E 336.6 N/A 220.9 272.2 5.0 4.7
Last updated on 19/03/2019
Industry outlook

Significant promise is seen in DNA-encoded libraries due to the potential to rapidly develop small molecule drugs to ‘tough-to-drug’ targets. We continue to see major investment in the space from an array of companies, notably GSK, Roche and Novartis.

Last updated on 19/03/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (SEKm) 163.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 1.5 (12.9) (23.3)
Relative* (0.6) (22.2) (28.0)
52-week high/low SEK20.1/SEK10.7
*% relative to local index
Key management
Alex Gouliaev CEO
Johnny Stilou CFO
Thomas Franch Chief Scientific Officer
Ton Berkien Chief Business Officer