Buying back rights from Ipsen

Photocure 13 May 2020 Update
Download PDF

Photocure

Buying back rights from Ipsen

Financial update

Pharma & biotech

13 May 2020

Price

NOK71.00

Market cap

NOK1,702m

NOK10.23/US$

Net cash (NOKm) at 31 March 2019 (+ offering)

271

Shares in issue

24.0m

Free float

90.5%

Code

PHO

Primary exchange

Oslo

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

10.5

(25.9)

59

Rel (local)

7

(9.8)

88.6

52-week high/low

NOK118.80

NOK42.50

Business description

Photocure specialises in photodynamic therapy. Its bladder cancer imaging product is sold as Hexvix in Europe and Cysview in the US. It handles the marketing in Nordic countries and the US, while Ipsen is its marketing partner in the EU (until Q420). Cevira was licensed to Asieris, with an initial focus of development on China.

Next events

Close of re-acquisition of rights from Ipsen

Q420

Analysts

Maxim Jacobs

+1 646 653 7027

Wiktoria O’Hare

+1 646 653 7028

Photocure is a research client of Edison Investment Research Limited

Photocure has announced that it is in the process of re-acquiring the rights to Hexvix/Cysview in territories where Ipsen is currently marketing the product (primarily the EU). Key terms have been agreed upon and the transition is expected to occur in Q420. The key terms include a payment of €15m (NOK166m at the current exchange rate) from Photocure to Ipsen as well as royalty payments. Photocure expects the re-acquisition to be EBITDA accretive in 2021 and beyond. To fund the payment, Photocure has raised NOK143m in equity through a private placement.

Year end

Revenue (NOKm)

PBT*
(NOKm)

EPS*
(NOK)

DPS
(NOK)

P/E
(x)

Yield
(%)

12/18

181.5

(22.5)

(1.04)

0.0

N/A

N/A

12/19

281.6

45.9

1.46

0.0

48.6

N/A

12/20e

168.4

(60.7)

(3.12)

0.0

N/A

N/A

12/21e

266.1

38.0

1.17

0.0

60.7

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

COVID-19 affected Q120, but sales still grew

The COVID-19 pandemic had an impact on sales over the last three weeks of Q120, but across the entire quarter Hexvix/Cysview sales still grew by 6% compared to Q119 to NOK54.4m, driven by the US market, which grew 33% to NOK28.2m. The total installed base of blue light cystoscopes (both rigid and flexible) increased to 238, up 7% compared to the end of 2019 and up 39% compared to the same quarter last year.

Nordic and partner sales fell

Nordic revenues were NOK12.2m, down 7% in Q120 compared to Q119, with unit sales down 10%. Unit sales were affected by large deliveries to hospitals in Denmark at the end of 2019 as well as by COVID-19. Partner revenue decreased 18% to NOK14.0m with unit sales decreasing by 2%. Germany continues to grow but this was offset by weakness in other countries.

Significant potential in the EU once deal completed

The EU remain mostly an untapped market as Germany, with 30% market share, is the only member country approaching the penetration achieved in the Nordics (40%). France has less than 5% penetration and countries like the UK, Italy and Spain are near zero due to decisions by Ipsen either not to pursue them or to invest only limited resources. Going forward the EU could be a key driver for the company.

Valuation: NOK2,625m or NOK109 per share

We have decreased our valuation to NOK2,625m or NOK109 per basic share, from NOK2,699m or NOK124 per basic share, mainly due to a reduction in our near-term estimates due to COVID-19 affecting procedures (the per-share value was also affected by dilution from the capital raise). The reduction was offset in part by a higher net cash total and rolling forward our NPVs. As the Ipsen rights re-acquisition has not closed, we are not yet including its impact in our estimates.

Q120 results

Photocure reported total revenue of NOK55.0m for Q120, representing 5% growth over Q119. Hexvix/Cysview sales were up 6%, growing to NOK54.4m. Sales in the US continued to be strong, up 33% compared to Q119 (up 21% in US dollar terms) despite the initial impacts of COVID-19 in March. End-user US unit sales were also strong, growing 17% for the quarter compared to Q119, driven in part by an increase in the number of permanent blue light cystoscopes (BLC) installed. There are currently 238 installed, up 7% compared to the end of 2019 and up 39% compared to the same quarter last year. 211 of the total are rigid cystoscopes, while 27 are flexible cystoscopes for use in the surveillance setting. This growth in the installed base is a good indicator of growth in upcoming periods (especially after an expected return to normalcy following the COVID-19 pandemic). With regards to the COVID-19 pandemic impact on operations in the US, the company is seeing the postponement of bladder cancer procedures but believes these will be prioritized and will be among the first to return as hospital operations return to normal. Q2 will likely be the low in terms of sales, barring a substantial increase in COVID-19 cases post-Q2 and expanded lockdowns.

Nordic revenues were NOK12.2m, down 7% in Q120 compared to Q119, with unit sales down 10%. Unit sales were affected by large deliveries to hospitals in Denmark at the end of 2019 as well as by COVID-19. Partner revenue decreased 18% to NOK14.0m with unit sales decreasing by 2%. Germany continues to grow but this was offset by weakness in other countries.

SG&A and other non-R&D operating expenses for Q1 were up 12% to NOK53.1m compared with last year. R&D expenses (excluding depreciation and amortization) remained under control at NOK0.5m, down 46% compared to Q119, as it now consists of maintenance and expansion of Photocure’s intellectual property and some regulatory work rather than discrete development programs (Asieris is responsible for funding the Cevira program). EBITDA (before restructuring) for the company was a NOK4.8m loss, a slight increase compared to the NOK1.5m loss in the year ago quarter. There was likely a COVID-19 impact to these profitability numbers as the pandemic and resulting decrease in procedures was unexpected, so the revenue impact was not compensated with a reduction in expenses (though the company is taking cost saving measures in Q2).

Re-acquisition of Ipsen rights

Photocure is in the process of re-acquiring the rights to Hexvix/Cysview in territories where Ipsen is currently marketing the product (primarily the EU). Key terms have been agreed upon though a final deal is still pending as final confirmatory due diligence has yet to be completed. The transition is expected to occur in Q420, which is when Photocure will start selling Hexvix/Cysview in the Ipsen territories. Photocure’s book sales for the partnered regions are expected to triple (2019 royalty was NOK61m excluding IFRS adjustments) once it initiates sales though there will also be an impact on expenses. The company expects around NOK30m in integration and ramp-up costs in 2020, another NOK30–35m in SG&A for this year and NOK90m in increased SG&A for 2021. The agreement is expected to be EBITDA accretive for the full year 2021. Additionally, the company has announced that it is targeting NOK1bn in reported revenues for 2023 with 40% EBITDA margins as a result of the re-acquisition.

The key terms include a payment of €15m (NOK166m at the current exchange rate) from Photocure to Ipsen as well as royalty payments of 10–15% of sales over the first seven years and 7.5% for the following three years. To help fund the payment, Photocure has raised NOK143m through the sale of 2.2m shares at NOK65.50 per share.

We believe that Photocure is re-acquiring the rights as it has so far been successfully marketing the product itself in the large US market and also due to lacklustre growth of Hexvix/Cysview under Ipsen’s stewardship in the EU. Sales growth clearly slowed once Ipsen took control of marketing from GE Healthcare in 2011.

Exhibit 1: Unit sales and trendlines by partner (EU)

Exhibit 2: EU vs Nordics market share

Source: Photocure

Source: Photocure

Exhibit 1: Unit sales and trendlines by partner (EU)

Source: Photocure

Exhibit 2: EU vs Nordics market share

Source: Photocure

The regions where Ipsen has been marketing Hexvix/Cysview remain mostly an untapped market as Germany, with 30% market share, is the only country approaching the market share achieved in the Nordics (40%). France has less than 5% penetration and countries like the UK, Italy and Spain are at close to zero due to decisions by Ipsen either to not pursue them or to invest only limited resources. The US will clearly remain the main driver for the company for the foreseeable future, but the EU could also provide a strong tailwind for the company. The company expects to see 20–30% growth in the EU after 2021.

Valuation

We have decreased our valuation to NOK2,625m or NOK109 per basic share, from NOK2,699m or NOK124 per basic share previously, mainly due to a reduction in our near-term estimates due to COVID-19 affecting procedures (the per-share value was also affected by the dilution of the capital raise). The reduction was offset in part by a higher net cash total and rolling forward our NPVs. As the Ipsen rights re-acquisition has not closed, we are not yet including its impact in our estimates.

Exhibit 3: Photocure valuation table

Product

Main indication

Status

Probability of commercialisation

Launch year

Peak sales (NOKm)

Peak year

Economics

rNPV
(NOKm)

Hexvix/Cysview

Bladder cancer detection

Market

100%

Launched

570

2024

Fully owned – US and Nordics; partner with Ipsen in EU (35% royalty)

2,051

Cevira

HPV-related diseases

Phase III

40% (China)/
20% (US/EU)

2024 (China)

3,044

2034

10-20% royalty from Asieris

303

Total

 

 

 

 

 

 

 

2,354

Cash and cash equivalents (Q119 + raise)

271

Total firm value

2,625

Total basic shares (m)

24.0

Value per basic share (NOK)

109

Options (Q119, m)

0.1

Total number of shares (m)

24.0

Diluted value per share (NOK)

109

Source: Edison Investment Research

Financials

We have lowered our 2020 revenue estimates from NOK289.5m to NOK168.4m as we expect a severe decline stemming from COVID-19, with a low in quarterly sales in the second quarter and a recovery from there. We have also lowered our 2021 revenue estimates to NOK266.1m from NOK376.5m as the pace of new installations and sales contacts will likely be slower in 2020, hampering growth in the following year. Additionally, there is a risk of a second wave of COVID-19 infections occurring during the regular cold/flu season, which could lead to additional strains on the healthcare system and lockdowns that would have an impact on 2021.

We have lowered our SG&A estimates for both 2020 and 2021 by around NOK7m, though we might apply further reductions depending upon the cost saving initiatives taking place at the company. Our EBITDA estimate for 2020 is now a loss of NOK46.8m versus our previous estimate for a NOK58.1m profit as we have reduced our revenue estimates significantly with only minimal expense control. We expect a return to full year profit in 2021 with EBITDA of NOK39.5m (compared to NOK133.7m previously). As a reminder, none of these estimates include the re-acquisition of rights from Ipsen. Our estimates for revenues, SG&A and EBITDA will likely all increase once the deal closes, assuming no other major changes.

The company ended Q120 with NOK127.6m in cash, up from NOK125.3m at the end of Q4. The company raised NOK143m in equity at the end of April. We do not expect Photocure to require further financing as we believe it currently has enough cash to weather the COVID-19 pandemic in 2020 and make the necessary payments to Ipsen.

Exhibit 4: Financial summary

NOK'000s

2018

2019

2020e

2021e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

181,510

281,557

168,358

266,107

Cost of Sales

(17,147)

(22,512)

(15,206)

(18,649)

Gross Profit

164,362

259,045

153,152

247,457

Sales, General and Administrative Expenses

(165,530)

(196,452)

(197,803)

(205,715)

Research and Development Expense

(9,325)

(3,644)

(2,132)

(2,217)

EBITDA

 

 

(10,492)

58,949

(46,783)

39,525

Operating Profit (before amort. and except.)

 

 

(23,703)

42,737

(62,217)

36,438

Intangible Amortisation

0

0

0

0

Other

0

0

0

0

Exceptionals

(14,199)

0

(1,894)

0

Operating Profit

(37,902)

42,737

(64,111)

36,438

Net Interest

1,187

3,165

1,516

1,577

Other

0

0

0

0

Profit Before Tax (norm)

 

 

(22,516)

45,901

(60,701)

38,015

Profit Before Tax (FRS 3)

 

 

(36,715)

45,901

(62,595)

38,015

Tax

6

(14,070)

(12,897)

(10,264)

Deferred tax

(0)

(0)

(0)

(0)

Profit After Tax (norm)

(22,510)

31,832

(73,598)

27,751

Profit After Tax (FRS 3)

(36,709)

31,832

(75,492)

27,751

Average Number of Shares Outstanding (m)

21.6

21.8

23.5

23.7

EPS - normalised (ore)

 

 

(104)

146

(312)

117

EPS - FRS 3 (ore)

 

 

(170)

146

(322)

117

Dividend per share (ore)

0.0

0.0

0.0

0.0

BALANCE SHEET

Fixed Assets

 

 

77,767

70,476

45,707

46,984

Intangible Assets

22,502

11,605

582

524

Tangible Assets

2,141

2,040

1,892

3,227

Other

53,124

56,831

43,233

43,233

Current Assets

 

 

153,429

186,876

282,460

310,964

Stocks

18,582

16,410

16,905

30,720

Debtors

20,371

24,206

30,472

26,611

Cash

106,833

125,320

224,653

243,204

Other

7,643

20,940

10,430

10,430

Current Liabilities

 

 

(52,453)

(38,725)

(39,756)

(39,756)

Creditors

(52,453)

(38,725)

(39,756)

(39,756)

Short term borrowings

0

0

0

0

Long Term Liabilities

 

 

(2,401)

(10,036)

(9,785)

(10,764)

Long term borrowings

0

0

0

0

Other long term liabilities

(2,401)

(10,036)

(9,785)

(10,764)

Net Assets

 

 

176,342

208,591

278,626

307,429

CASH FLOW

Operating Cash Flow

 

 

(24,124)

20,655

(40,075)

21,863

Net Interest

0

0

0

0

Tax

0

(0)

0

0

Capex

(2,188)

(1,086)

(3,796)

(3,907)

Acquisitions/disposals

0

0

0

0

Financing

6,339

0

143,000

0

Dividends

0

0

0

0

Other

(2,562)

(1,081)

204

595

Net Cash Flow

(22,536)

18,487

99,333

18,551

Opening net debt/(cash)

 

 

(129,368)

(106,833)

(125,320)

(224,653)

HP finance leases initiated

0

0

0

0

Exchange rate movements

0

0

0

0

Other

1

0

0

0

Closing net debt/(cash)

 

 

(106,833)

(125,320)

(224,653)

(243,204)

Source: company reports, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Photocure and prepared and issued by Edison, in consideration of a fee payable by Photocure. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 20230 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Photocure and prepared and issued by Edison, in consideration of a fee payable by Photocure. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 20230 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Share this with friends and colleagues