Regeneus

AU: RGS

AU$21.5m market cap

AU$0.08 last close

Regeneus is a clinical-stage regenerative medicine company developing innovative cell-based therapies for the human & animal health markets.

Investment summary

Regeneus has revised expected timing of an osteoarthritis (OA) clinical development licence deal for Progenza in Japan to Q4 CY18 (vs Q218); it is currently in active discussions with several parties. A licence deal would trigger a US$5m milestone payment from partner AGC and would effectively see Progenza commence a Phase II trial in knee OA in Japan. Regeneus is in separate discussions with potential licensees for other indications and territories for Progenza, as well as for its other pipeline products. We roll forward our rNPV model to FY19, which lifts our valuation to A$181m (vs A$170m) or A$0.87/share. Depending on the terms, we estimate an OA licence deal could add up to ~A$50m to our valuation.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 10.0 4.9 3.3 1.57 5.1 4.7
2018A 0.6 (4.8) (5.2) (2.48) N/A N/A
2019E 7.8 2.3 2.2 1.04 7.7 7.3
2020E 1.6 (4.0) (4.2) (2.00) N/A N/A
Last updated on 13/09/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (A$m) 2.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (7.0) (9.1) (50.4)
Relative* (8.7) (11.2) (54.3)
52-week high/low A$0.2/A$0.1
*% relative to local index
Key management
Leo Lee CEO
John Bird CFO