Silence Therapeutics

LN: SLN

£321.3m market cap

410p last close

Silence Therapeutics (SLN) has a portfolio of siRNA drugs in early stage testing. SLN124 for iron overload is the most advanced and is entering the clinic in Q120. SLN360 is being developed for cardiovascular disease and is targeting an IND filed in H220. Silence recently signed a deal with Mallinckrodt for rights to the preclinical complement inhibitor, SLN500, and a deal with Takeda to pursue an undisclosed target.

Investment summary

We are initiating coverage of Silence Therapeutics (SLN), a developer of siRNA drugs for diseases that can be genetically targeted. Silence has a proprietary platform for developing siRNA therapeutics, the strength of which was highlighted by preclinical development deals with Mallinckrodt and Takeda (details below). The company will also be re-entering the clinic in Q120 with SLN124, its own drug for iron overload. We are initiating with a valuation of £345m or 440p per share.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 0.0 (14.0) (13.5) (7.7) N/A N/A
2018A 0.0 (20.2) (19.8) (25.2) N/A N/A
2019E 2.1 (18.5) (18.2) (20.8) N/A N/A
2020E 5.8 (22.5) (22.1) (24.1) N/A N/A
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (£m) 33.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 25.8 6.2 745.4
Relative* 28.6 3.3 704.3
52-week high/low 610.0p/41.0p
*% relative to local index
Key management
Rob Quinn CFO
Iain Ross Executive Chairman