Transgene

EU: TNG

€151.5m market cap

€1.82 last close

Transgene is a French company developing immunotherapy agents for cancer and infectious diseases. Oncolytic virus Pexa-Vec (Phase III for HCC) and cancer vaccine TG4010 (Phase II for NSCLC) are the lead clinical candidates.

Investment summary

At the 2019 European Society for Medical Oncology (ESMO) conference, Transgene presented the first efficacy data for TG4001 in combination with avelumab (Bavencio) in patients with human papillomavirus (HPV) positive cancers. In the Phase I trial, three out of nine patients treated demonstrated a durable partial response, and no dose-limiting toxicities were observed among the nine patients. All patients had metastatic disease and had previously undergone multiple lines of therapy. The tumour types selected have historically demonstrated low response rates to immune checkpoint inhibitors and we view this early data as positive for TG4001. We retain our valuation of Transgene at €287m (€3.45/share).

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 8.1 (26.4) (35.0) (53.1) N/A N/A
2018A 42.9 9.1 (36.8) (44.7) N/A N/A
2019E 16.9 (12.0) (15.9) (20.9) N/A N/A
2020E 4.9 (24.3) (27.6) (33.1) N/A N/A
Industry outlook

Immunotherapies are among the most promising class of products for cancer. Increased attention is now being paid to the use of combination therapy approaches to improve cancer response rates further.

Last updated on 13/11/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (€m) 13.7
Forecast gearing ratio (%) 19
Price performance
%
1m
3m
12m
Actual 1.1 2.5 (38.3)
Relative* (2.8) (6.5) (45.8)
52-week high/low €3.2/€1.7
*% relative to local index
Key management
Philippe Archinard Chairman & CEO
Lucie Larguier Director of IR