Focus on retinal therapy, out-licensing of stroke

ReNeuron Group 23 June 2020 Update
Download PDF

ReNeuron Group

Focus on retinal therapy, out-licensing of stroke

Strategic update

Pharma & biotech

23 June 2020

Price

132.5p

Market cap

£42m

$1.32/£

Cash (£m) at 30 September 2019

21.3

Shares in issue

31.6m

Free float

99.7%

Code

RENE

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(12.3)

60.6

(35.7)

Rel (local)

(16.3)

31.6

(24.8)

52-week high/low

275.0p

75.5p

Business description

ReNeuron Group is a UK biotech company developing allogeneic cell therapies. Human retinal progenitor cells are also being studied for retinitis pigmentosa (in Phase I/IIa). There is a strong preclinical technology base in exosomes.

Next events

Further hRPC Phase I/IIa data

Ongoing

FY20 results

July 2020

hRPC Pivotal study start

H221

Analyst

Dr John Savin

+44 (0)20 3077 2500

ReNeuron Group is a research client of Edison Investment Research Limited

ReNeuron has changed its focus to concentrate on cell therapy for retinal disorders. The Phase I/II has FDA clearance to use a higher dose and a new UK trial site in Oxford has been added. A pivotal study may start in H221. The CTX cell line for stroke will now be out-licensed. Internally, it will be used to produce exosomes, an emerging new area. Preclinical exosome technology might be used for therapeutic delivery to the brain and in vaccination or treatment of SARS-CoV-2 infections. Our indicative value is adjusted to £107m, formerly £197m, pending full FY20 results due in July.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

03/18

0.9

(21.0)

(55.66)

0.0

N/A

N/A

03/19

2.7

(17.2)

(45.34)

0.0

N/A

N/A

03/20e

6.1

(22.8)

(60.33)

0.0

N/A

N/A

03/21e

3.1

(30.8)

(83.69)

0.0

N/A

N/A

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

hRPC cell-based therapy might treat any RP patient

Retinitis pigmentosa (RP) is an inherited, degenerative eye disease caused by one of over 100 different gene mutations. ReNeuron’s human retinal progenitor cell (hRPC) therapy could potentially treat any RP patient, giving a big potential commercial advantage; competing gene therapies only treat specific mutations. ReNeuron has regulatory permission from the FDA to move to a higher dose level in its US Phase /IIa US trial (NCT02464436). The 12-month data on eight patients are due by late 2020. Data from February showed rapid gains in the treated eye followed by a stable gain in mean visual acuity. In the UK, a new trial site in Oxford has been approved. A pivotal hRPC study is being planned to start in H221. Running a US trial may require a US partner. We use an unchanged 25% probability of success for hRPC therapy but extend launch to 2024.

Stroke and Huntington’s therapies to be partnered

Edison has always assumed that the stroke CTX cell therapy would be eventually out-licensed. The decision not to invest further in this project means that partners will be required without a large data set. This cuts our estimate of the royalty rate from 30% to 12.5%. It also extends the time to market from 2024 assumed to at least 2027 and, due to partnering, reduces the probability from 30% to 15% (Phase I). The current partner in China, Fosun, is unaffected by the decision so its value is unchanged. Preclinical data in June on improving motor ability in Huntington’s disease were promising but any development will be run and funded by partners.

Valuation: Now £107m

The changes above reduce our indicative value to £107m (formerly £197m). The stroke indication was 49% of the pre-cash value. We will reassess the hRPC valuation as data emerge. Exosome deals are promising but the projects are preclinical and cannot be realistically assessed yet. The hRPC launch is now assumed in 2024. Cash on 31 March 2020 is estimated to be about £8m pending the year-end results due in July. We envisage a further funding need in FY21.

Detailed RPC data to 12 months, US and UK expansion

The January 2020 data update on the US Phase I/IIa US trial (NCT02464436) is shown in Exhibit 1 based on eight treated patients who had successful surgery. At 12 months, there were three patients reported. By the end of 2020, there will be 12 months of data on eight patients, giving a better view of the long-term response. By then, there will also be some 18-month vision data. The trial has a two-year final endpoint. The reported patients were each dosed with one million cells.

In an amended protocol submitted to the FDA, now approved, nine extra patients will be added to the 21 planned and the dose will be raised to two million cells. In addition, a wider range of pre-treatment baseline visual acuity in patients will be eligible and the trial endpoints will be expanded to include microperimetry testing to measure and detect spatial changes in retinal sensitivity. The trial currently runs at two US centres.

The UK MHRA regulatory agency has approved a UK site trial at the Oxford Eye Hospital. Professor Robert MacLaren, a recognized leader in the treatment of retinal diseases, will be principal investigator.

Exhibit 1: Visual mean acuity gain in treated and untreated eyes with hRPC

Source: ReNeuron (Edison graphic)

The exact 12-month mean data in Exhibit 1 are less important as the numbers will change as much more patient data is acquired at the higher dose level. According to management, the planned pivotal study is now due to start from H221. We have no indication of timeline or design. The valuation assumption was formerly of sales from 2023, which is still potentially feasible – just – if enough patients can be enrolled quickly and approval is fast-tracked. However, with the extended Phase I/II study and a start later in 2021 than anticipated, we prudently now assume a 2024 launch.

This is now ReNeuron’s key project. As in previous notes, we have valued it on a partnered basis with a 30% royalty. This level assumes that ReNeuron funds the project itself, so we have added an extra year of R&D costs. However, there have been a number of deals in the genetic eye diseases area, for example Nightstar was acquired for $800m by Biogen in 2019. Hence partnering based on expanded Phase II data is possible and could be significantly value enhancing. Alternatively, this type of specialist retinal therapy (subretinal implantation of hRPC) would only be expected to be carried out by a limited number of a specialists, potentially allowing direct sale by ReNeuron – this will require future investment in a small salesforce.

CTX therapy

The intention now announced is to use regional partnerships to progress the use of the CTX cell platform in stroke and possibly in Huntington’s disease. ReNeuron has announced that ‘patient recruitment in the PISCES III Phase 2b study with CTX in stroke disability, which has been on hold due to COVID-19 related restrictions, will remain suspended in the US for the foreseeable future’. A recent publication summarised data from the prior PISCES II study showing improvement in upper limb function so long as some function was present at the time of cell implantation.

We have therefore left the Fosun deal value in place and assumed further deals on CTX in stroke with no further R&D costs. The use of regional partnerships might be problematic as deals could be hard to close outside the US and there are no scale effects to clinical studies. We therefore reduce the probability to 15% (from 25%) and cut the expected royalty rate from 30% to 12.5% given the potentially major clinical costs and risks. Due to the current hold on the PISCES III study and the need for deals, the expected launch date outside China is pushed out to 2027 (formerly 2024).

A paper in June on a preclinical Huntingdon’s disease showed that CTX cells showed stable engraftment and connection of the transplanted cells into the brains (of mice), which gave improved motor skills in a disease model.

Exosomes

The main future internal use of the CTX line is to generate exosomes. Exosomes are tiny lipid (oil) vesicles about 100nm in diameter. They are secreted by cells, especially by mesenchymal stem cells (MSCs), the basis of CTX. Exosomes carry proteins and RNA messages between cells and may be responsible for the modification of the local immune response by MSCs. They have relatively robust membranes making them potentially delivery vehicles.

ReNeuron announced in 2018 at an R&D day that it had a method to scale up exosome production under GMP conditions which should allow a clinical study. The main preparation method in research laboratories is ultracentrifugation, which gives tight size ranges but is laborious and small scale.

Exosomes can be loaded once isolated with short RNA sequences and/or small therapeutic proteins or drugs. The membrane can be modified to enable the exosomes to target specific cell types or be produced from specific cell lines giving inherent targeting to that tissue. ReNeuron notes that it can add the SARS-CoV-2 spike protein, for example, which could make the exosomes appear like viral particles. This is a possible SARS-CoV-2 vaccine candidate. Exosomes also appear to pass though the blood/brain barrier, as shown by literature reports of down regulation of brain proteins by exosomes injected into mice.

The ability to load and modify/target exosomes is very important as, when produced inside MSCs, exosomes will contain an assorted variety of RNA and proteins. To ensure a consistent product therefore, isolation, exosome loading and possible targeting would appear necessary. For a therapeutic product, consistency and scale are essential.

So far, ReNeuron has entered into a collaboration agreement with a US-based biopharmaceutical company to explore the use of exosome technology to deliver synthetic oligonucleotides for gene therapy. It is also in active discussions with other companies on potential collaborations. Currently, there are no disclosed timescales and we note that the COVID-19 vaccine area is already crowded.

We are aware of only one very small academic trial with exosomes so far. There are also some emerging specialist companies like Evox Therapeutics, based in Oxford, UK. Evox announced a deal with Takeda in 2020 worth up to €803m (over several years and assuming successful development) to develop exosomes for rare diseases, showing the commercial potential of this area. Exosomes are therefore a highly promising area but at an early stage generally.

Valuation: Revised and rebased

In the previous valuation, CTX for stroke was about 50% of the pre-cash valuation. Adjusting the probability, royalty rate and extending the timescale reduces this from £87m to £6m. The discount period has been rebased to 2020 from 2019, giving some automatic uplifts of the projects. However, we have also extended the hRPC timescale and increased the cost forecast accordingly. Overall, this reduces the estimated enterprise value pre-cash from £176m to £99m.

Our estimate of end-FY20 (31 March) cash is £8m, down from £21m in September 2019. Cash use in the second half of CY20 might be lower than previously expected due to reduced trial activity and cessation of CTX patient recruitment, initially due to COVID-19 and later due to the new strategy. We retain our previous assumption that up to £30m might be raised in H2 CY20 to allow for expansion of hRPC studies and exosome developments.

The revised value basis is shown in Exhibit 2. This gives an overall value including estimated March 2020 cash of £107m, equal to 336p per share with about 32m shares in issue currently.

Exhibit 2: Revised valuation estimate

Product

Setting

Status

Launch

NPV (£m)

Peak sales ($m)

Probability of success

Royalty rate

rNPV (£m)

rNPV per share (p)

Dec-19

Jun-20

CTX

Stroke disability

Phase II

2027

59

1,388

15%

12.5%

87

6

20

hRPC

CRD

Phase I/II

2024

63

185

20%

30%

11

11

36

hRPC

RP

Phase I/II

2024

206

691

25%

30%

55

64

201

Fosun Partnership

N/A

N/A

N/A

31

N/A

N/A

N/A

23

17

53

Portfolio total

328

176

99

311

Cash

21*

8**

25

Overall valuation

197

107

336

Source: Edison Investment Research. Note: *Reported 30 September 2019. **Estimated amount for 31 March 2020.

Our financial estimates are unchanged pending the publication of FY20 results in July. They are shown in Exhibit 3.

Exhibit 3: Financial summary

£'000s

2018

2019

2020e

2021e

Year end 31 March

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

897

2,720

6,094

3,094

Cost of Sales

0

0

0

0

Gross Profit

897

2,720

6,094

3,094

R&D expenses

(16,657)

(16,240)

(24,685)

(28,634)

SG&A expenses

(4,616)

(4,779)

(5,078)

(5,586)

EBITDA

 

 

(20,222)

(17,915)

(23,448)

(30,965)

Operating Profit (before amort. and except.)

 

(20,376)

(18,299)

(23,575)

(31,032)

Intangible Amortisation

0

0

0

0

Exceptionals

0

0

0

0

Operating Profit

(20,376)

(18,299)

(23,575)

(31,032)

Other

0

0

0

0

Net Interest

(591)

1,064

792

240

Profit Before Tax (norm)

 

 

(20,967)

(17,235)

(22,783)

(30,792)

Profit Before Tax (FRS 3)

 

 

(20,967)

(17,235)

(22,783)

(30,792)

Tax

3,352

2,887

3,579

4,152

Profit After Tax (norm)

(17,615)

(14,348)

(19,204)

(26,640)

Profit After Tax (FRS 3)

(17,615)

(14,348)

(19,204)

(26,640)

Average Number of Shares Outstanding (m)

31.6

31.6

31.8

31.8

EPS - normalised (p)

 

 

(55.66)

(45.34)

(60.33)

(83.69)

EPS - FRS 3 (p)

 

 

(55.66)

(45.34)

(60.33)

(83.69)

Dividend per share (p)

0.0

0.0

0.0

0.0

BALANCE SHEET

Fixed Assets

 

 

912

1,522

1,682

1,959

Intangible Assets

186

186

186

186

Tangible Assets

726

632

792

1,069

Other

0

704

704

704

Current Assets

 

 

41,706

29,988

11,684

15,849

Stocks

0

0

0

0

Debtors

1,285

834

834

834

Cash and deposits

37,411

26,386

8,082

12,247

Other

3,010

2,768

2,768

2,768

Current Liabilities

 

 

(5,949)

(7,402)

(7,402)

(7,402)

Creditors

(5,949)

(7,261)

(7,261)

(7,261)

Short term borrowings

0

0

0

0

Short term leases

0

(141)

(141)

(141)

Other

0

0

0

0

Long Term Liabilities

 

 

0

(864)

(864)

(30,864)

Long term borrowings

0

0

0

(30,000)

Long term leases

0

0

0

0

Other long-term liabilities

0

0

0

0

Net Assets

 

 

36,669

24,108

5,965

(19,593)

CASH FLOW

Operating Cash Flow

 

 

(14,887)

(11,947)

(18,808)

(25,733)

Net Interest

383

342

792

242

Tax

0

0

0

0

Capex

(235)

(239)

(287)

(344)

Acquisitions/disposals

0

0

0

0

Financing

0

0

0

0

Dividends

0

0

0

0

Other

0

0

0

0

Net Cash Flow

(14,739)

(11,844)

(18,304)

(25,835)

Opening net debt/(cash)

 

 

(53,061)

(37,411)

(26,380)

(8,076)

HP finance leases initiated

0

0

0

0

Other

(911)

813

0

0

Closing net debt/(cash)

 

 

(37,411)

(26,380)

(8,076)

17,759

Source: ReNeuron accounts, Edison Investment Research

General disclaimer and copyright

This report has been commissioned by ReNeuron Group and prepared and issued by Edison, in consideration of a fee payable by ReNeuron Group. 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 2020 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 ReNeuron Group and prepared and issued by Edison, in consideration of a fee payable by ReNeuron Group. 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 2020 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