Shield Therapeutics Edison

Shield Therapeutics

LN: STX

£118.4m market cap

101p last close

Shield Therapeutics is a commercial-stage pharmaceutical company. Its proprietary product, Feraccru, is approved by the EMA and FDA for the treatment of iron deficiency. Feraccru is marketed through partners Norgine, AOP Orphan and Ewopharma.

Investment summary

Shield Therapeutics (STX) has reported FY19 results; total revenue of £0.7m reflects royalties on Feraccru sales from European partner Norgine. 2019 achievements include FDA approval of STX’s key asset for the treatment of iron deficiency in patients with any underlying cause – the broadest possible label – in the critical US market. Momentum has continued into 2020 with an out-licensing deal with China-based Beijing Aosaikang Pharmaceutical (ASK Pharm) that covers China, Hong Kong, Macau and Taiwan. The next key inflection point is a US partnering deal, and discussions are ongoing with the aim of closing a transaction at the earliest opportunity in 2020. We expect Accrufer launch later this year once a partner has been found. STX reported a cash balance of £10.4m at 30 April 2020 implying a cash runway to Q121. We value Shield at £381.7m.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 11.9 (2.5) (5.2) (1.5) N/A N/A
2019A 0.7 (6.4) (9.1) (7.5) N/A N/A
2020E 12.7 3.4 1.1 2.0 50.5 N/A
2021E 9.0 (2.2) (4.3) (3.2) N/A 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 28/05/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (£m) 7.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (1.7) (24.3) (10.2)
Relative* (6.8) (15.6) 5.3
52-week high/low 196.0p/54.0p
*% relative to local index
Key management
Tim Watts CEO

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