Results for the US Phase IIb clinical study have been delayed by a quarter to mid-2020, so investors’ attention will now turn to the YE19 study update. However, Destiny’s H119 results showed continuing prudent management and targeted resourcing of the clinical programme, with grant income and a regulatory backdrop that supports novel antimicrobial development.
Our next major valuation revision is expected to be after the Phase IIb study results when we expect XF-73 will be Phase III ready. The H119 valuation changes have been minor, updating for exchange rates, Destiny’s H119 cash position and the expected £0.8m FY19 R&D tax rebate. The three-month delay to the Phase IIb study, the consequent cost containment and deferral means that our valuation has changed slightly from £86.7m or 199p per share to £83.2m or 191p per share.
Author: Dr Andy Smith