Shield Therapeutics Edison

Shield Therapeutics

LN: STX

£193.4m market cap

165p last close

Shield Therapeutics is a commercial-stage pharmaceutical company. Its product, Feraccru, is approved by the EMA and FDA for iron deficiency. Feraccru is currently marketed through partners Norgine (Europe) and a US commercial partner is being sought.

Investment summary

Shield Therapeutics has kick-started 2020 by securing an out-licensing deal in China for its primary asset, Feraccru/Accrufer. The exclusive deal with China-based Beijing Aosaikang Pharmaceutical (ASK Pharm) covers China, Hong Kong, Macau and Taiwan. ASK Pharm will complete any required clinical trials in China and file the marketing authorisation for the treatment of iron deficiency in all territories covered by the deal; we forecast China launch in 2023. Shield will receive an upfront licensing payment of $11.4m which, importantly, has extended the cash runway into 2021. The next key inflection point is a US partnering deal, which we assume will occur in the next 12 months; upfront payments from a deal will enhance Shield’s balance sheet further. We value Shield at £346.8m

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 0.6 (18.5) (18.4) (15.2) N/A N/A
2018A 11.9 (2.8) (5.2) (1.5) N/A N/A
2019E 3.0 (5.5) (7.9) (5.2) N/A N/A
2020E 11.1 1.9 (0.3) 0.7 235.7 N/A
Industry outlook

The market for iron deficiency is substantial and Feraccru is a unique oral formulation of iron developed to overcome the side-effect profile of salt-based oral iron therapies and provides an alternative treatment to intravenously administered iron.

Last updated on 17/01/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (8.6) (10.6) 353.3
Relative* (10.3) (16.6) 300.1
52-week high/low 196.0p/35.5p
*% relative to local index
Key management
Carl Sterritt CEO
Tim Watts Interim CFO