Shield Therapeutics Edison

Shield Therapeutics

LN: STX

£180.5m market cap

154p 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

Today’s 2019 business and trading update highlights a landmark year for Shield Therapeutics. Feraccru/Accrufer (oral ferric maltol) is making inroads in Europe, with sales volumes growing 67% through commercialisation partner, Norgine. Importantly, the AEGIS head-to-head study proved Feraccru/Accrufer to be non-inferior to IV iron therapy, a strong marketing tool for an oral treatment. In July 2019, the FDA approved the product for the treatment of iron deficiency in patients with any underlying cause – the broadest possible label. 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, which we assume will occur in the next 12 months. We value Shield at £345m.

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 2.9 (5.5) (7.8) (5.2) N/A N/A
2020E 11.7 2.5 0.3 1.3 118.5 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 18/02/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (6.7) (16.3) 217.5
Relative* (3.5) (18.0) 204.7
52-week high/low 196.0p/50.5p
*% relative to local index
Key management
Carl Sterritt CEO
Tim Watts Interim CFO