Gaining value on stable disease observations

Celyad 15 August 2017 ADR Update
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Celyad

Gaining value on stable disease observations

New trial and reshaped deal

Pharma & biotech

14 August 2017

ADR research

Price

$42

Market cap

$400m

ADR/Ord conversion ratio 1:1

$1.18/€

Cash ($m) at 31 March 2017

85m

ADRs in issue

9.53m

ADR code

CYAD

ADR exchange

NASDAQ

Underlying exchange

Euronext Brussels

Depository

CITI

ADR share price performance

52-week high/low

$48.2

$16.7

Business description

Celyad is developing an innovative CAR T-cell (NKR-2) immuno-oncology technology. The THINK Phase Ib study is underway in hematological and five sold tumor types. SHRINK is approved to enroll patients. Celyad is seeking a strategic partner for C-Cure for chronic heart disease.

Next events

Start of LINK

Q317

H117 results

Q317

Analysts

John Savin PhD

+44 (0)20 3077 5735

Dan Wilkinson

+44 (0)20 3077 5734

Celyad is a research client of Edison Investment Research Limited

The development of Celyad’s natural killer (NK) receptor-based CAR T-cell therapy (NKR-2/CYAD-01) has taken an important step with the initiation of the SHRINK trial, which moves NK CAR T-cell therapy towards the 90%+ of cancer patients who do not have CD19 or BCMA tumors. CYAD-01 is already being tested in THINK with five solid tumor types plus AML and MM. Promising THINK results have been reported at the lowest dose. Celyad has paid $25m in cash and shares to reduce the royalties payable on potential short-term deals and long-term sales. Our indicative value of Celyad has been revised to $616m or $61 per ADR.

Year end

Revenue ($m)

PTP*
($m)

EPADR
($)

DPADR
($)

P/E
(x)

Yield
(%)

12/15

0.0

(30.6)

(3.52)

0.0

N/A

N/A

12/16

9.5

(25.3)

(2.32)

0.0

N/A

N/A

12/17e

9.2

(30.2)

(3.17)

0.0

N/A

N/A

12/18e

10.0

(28.0)

(2.94)

0.0

N/A

N/A

Note: *PTP and EPADR are normalized, excluding amortization of acquired intangibles, exceptional items and share-based payments.

THINK: Two stable disease cases and revised deal

Celyad is running the large Belgian and US immuno-oncology autologous CYAD-01 THINK trial. Celyad has reported two cases of stable disease after three months at the first 3x108 dose level in previously progressing colorectal patients. The second 1x109 dose cohort is currently being treated. Overall data (six-month) are possible in H218. Tumors showing efficacy could then move into expanded studies allowing BLA filings from 2020.

SHRINK: Real world solid tumor therapy

Current leading CAR T-cell approaches like the CD19 and BCMA target a restricted patient population. Yet over 90% of US cancer patients have solid tumors, usually treated with chemotherapy. In SHRINK, Celyad will give CYAD-01 a few days after FOLFOX chemotherapy to colorectal patients with potentially resectable liver metastases. This important trial will evaluate if CYAD-01 is synergistic with chemotherapy and explore the optimal dose and timing.

Valuation: Revised to $616m

Celyad has a leading position in solid cancer therapy and has renegotiated the NK CAR T-cell licensing deals, paying $12.5m cash plus $12.5m in shares to reduce the amounts payable. We have increased the indicative value by this amount. The deal will give more cash from near-term deals, perhaps on allogeneic technology, and increase longer-term cash flows. The probability of the colorectal indication has been increased from 10% to 20% reflecting the new observations. Other small adjustments have also been made. The indicative value estimated by Edison on one solid cancer plus AML and MM is therefore revised to US$616m (US$61 per ADR). As a scenario, if all five current solid cancer indications are included, the value would be US$1.5bn and US$153/ADR before dilution. We estimate that Celyad has cash into 2019.

THINK

The THerapeutic Immunotherapy with NKR-2 (THINK) study (NCT03018405) is an open-label, multiple-dose US and European study currently in a dose escalation phase. It is assessing at higher dose levels the safety and clinical activity of autologous NKR-2 CAR T-cells (CYAD-01) in seven refractory cancers: the two hematological cancers with Phase I data (AML and MM) and five solid tumors (colorectal, ovarian, bladder, triple-negative breast, and pancreatic).

The trial is testing three dose levels: 3x108 cells (completed), 1x109 cells (currently being treated) and 3x109 cells. At each dose, a patient receives three successive administrations, two weeks apart, of CYAD-01. It is likely that the highest dose will be needed as Celyad does not use a preconditioning regimen – that is patients are not given a cytotoxic therapy that ablates existing immune cells. The avoidance of preconditioning is based on preclinical work published by Professor Sentman at Dartmouth College who originated the NKG2D CAR T-cell therapy.

Use of preconditioning in B-cell cancers allows the infused CAR T-cells to grow rapidly and become, for a while, a high proportion of the T-cells. As the tumor regresses and normal T-cells recover, the proportion of CAR T-cells drops rapidly. Without preconditioning, the NK CAR T-cells will remain as a small proportion of the overall T-cell population.

However, as noted in the July 2017 Novartis FDA advisory committee presentation on CD19 therapy in paediatric ALL, there were no specific markers or dose response correlations with patient responses.

A key aspect of NK CAR T-cell therapy is its ability to recruit an endogenous T-cell response against the cancer. This could enable successful long-term immune control of the cancer. It is also notable that, so far, NK CAR T-cell therapy has been free of common side effects seen with B-cell targeted CAR T-cells like cytokine release syndrome (CRS) and neurotoxicity (NT). This might be due to the lack of preconditioning, which limits the expansion of the NK CAR T-cells. However, as noted, CRS and NT side effects did not correlate with response in CD19 CAR therapy.

So far, Celyad has seen stable disease over three months in two colorectal patients treated at the lowest dose. There was a previous stable disease response in an AML patient in the previous study at a lower dose still. Note that in solid cancer, the use of any CAR T-cell therapy is experimental and response rates are potentially different to those seen in more tractable B-cell cancers.

Trial design

The dose escalation part of the study will enroll up to 24 patients. Specifically, the trial is split into hematological and solid tumor arms with 12 patients each. The dose escalation cohorts are of three patients dosed sequentially. If a dose-limiting toxicity is noted, a fourth patient is tested at that dose, otherwise the next dose is tested. At the highest tolerated dose, a further three patients are tested to confirm safety. Overall six-month dose data are possible in H218. The two-year primary endpoint data could be due in mid-2020. However, there should be no delay in starting the expansion of different cancer types in H218. In the expansion stage, individual cancer types will be recruited with up to five solid cancer arms plus two possible hematological arms. This phase requires 14 patients per cancer: 98 in total made of 86 further patients plus the 12 at the highest dose cohort. As safety will have been shown by this stage, patients can be dosed as they are enrolled rather than sequentially as at present. This will potentially speed up the trial, perhaps allow further expansion of some indications and therefore lead potentially to BLA filings.

The SHRINK study starts

The Celyad natural killer (NKG2D) receptor CAR T-cell approach, CYAD-01, targets the ubiquitous stress ligands expressed by many cancers. These stress ligands are upregulated in response to chemotherapy. However, they are also expressed by normal cells exposed to toxic agents, if only for a short period. Chemotherapy might make the tumor more stressed and so more susceptible to CYAD-01 targeting. It might also expose some normal tissues to CYAD-01 so timing of dosing is important to allow enough normal tissue recovery post chemotherapy. In the real world, most solid cancer patients will receive chemotherapy and knowing how to combine standard chemotherapy with CAR T-cell therapy is crucial. If it proves to be synergistic, it would be a major cancer therapy breakthrough as most chemotherapy regimens show limited survival gains in a minority of patients.

In SHRINK, CYAD-01 doses will be adjusted to body weight and escalate from 3x108 to 1x109 to 3x109 cells. Patients will receive three CYAD-01 doses two weeks apart. The dose escalation phase will be 18 patients (six/cohort) with 21 in any expansion phase. The trial is being run in Belgium. It has not yet been posted on the clinical trials databases but is approved by the Belgium regulator.

The patients enrolled will suffer from colorectal cancer with potentially resectable liver metastases. These patients routinely receive FOLFOX chemotherapy. FOLFOX is a combination of folinic acid (leucovorin), fluorouracil (5FU) and Oxaliplatin. About 20-30% of colorectal cancer cases are found to have metastatic disease on diagnosis. FOLFOX is not a regimen that targets the immune system, unlike the preconditioning regimen used in B-cell CAR T-cell therapies. We would therefore not expect to see dramatic immediate effects of adding CAR T-cell therapy. FOLFOX is effective at shrinking tumors and multiple treatments are given. Shorter endpoints are likely to be used in initial studies. Overall survival will be crucial for widespread use, but will take some years to determine as FOLFOX gives median overall survival of about two years vs six months on supportive care.

Reshaping the Celdara and Dartmouth licensing deals

On 4 August 2017, Celyad announced that it was paying $25m in cash and shares to receive an “increased share of future revenues” generated by intellectual property licensed from Dartmouth College. The NK CAR T-cell IP was originally licensed in 2010 by OnCyte, a subsidiary of Celdara LLC, a US private venture company. Celyad acquired OnCyte in 2015 from Celdara. The value is being paid as $12.5m cash and $12.5m in shares at $38.17/share, a 14% premium.

Exhibit 1: Celyad agreements with Celdara and Dartmouth College

Date and agreement

Terms disclosed

Dartmouth College and Celdara

In January 2015, Celyad bought all the shares in OnCyte, LLC from Celdara Medical, LLC, for $10m and purchased all the assets including the licence agreements between Celdara and Dartmouth College, related to CAR T-cell therapy. Celyad agreed to milestone payments to Celdara of up to $40.0m for clinical products and of up to $36.5m for pre-clinical products, as well as sales-based milestone payments of up to $80m. Celdara was to receive a tiered single-digit royalty on sales of CAR T-cell products for either 10 years for the first sale or until the last patent expires if later. This agreement has now been modified.

2010 Dartmouth Licence Agreement on NK CAR T-cell

Under the April 2010 agreement between Celdara and Dartmouth College (amended in February 2012, July 2013 and January 2015), now owned by Celyad, Dartmouth granted an exclusive, worldwide, royalty-bearing licence to patents on NK and NKP30 receptor CAR T-cell cancer therapeutics. The licence also covered T-cell receptor-deficient T-cells for allogeneic therapies (now licensed non-exclusively to Novartis). There was an annual licence fee of $20k and a low single-digit royalty with minimum obligations beginning 30 April 2024. Celyad also pays a tiered percentage of sublicensing income ranging from the mid-single digits to the mid-teens depending on the deal terms. Celyad also makes milestone payments up to $1.5m.

2014 Agreement on anti-B7-H6 antibodies

Under the exclusive licence agreement with Dartmouth entered into in June 2014 (amended January 2015), Dartmouth granted Celyad an exclusive, worldwide, royalty-bearing licence under certain know-how and patent rights to an anti-B7-H6 antibody and fusion proteins.

Source: Adapted by Edison from SEC filing F1/A June 2015


Valuation

To reflect the change in expected revenues, we have made two major adjustments:

Edison assumes that the NPV added due to the Celdara and Dartmouth College deal is the same as the payment of US$25m. The overall indicative value has therefore been increased by this amount. As the information on the deal structure is in outline only (Exhibit 1) and in any case affected by the relatively low probability adjustments used in the current CYAD-01 clinical studies, it is not possible to make precise value adjustments.

The other major adjustment is to the CYAD-01 colorectal probability, Exhibit 2. This was 10% as there was no preclinical model available. As there have been stable disease responses reported and as the SHRINK study targets metastatic colorectal cancer, Edison has aligned the probability with ovarian cancer to 20%. Note that the stable disease finding cannot be statistically validated as the two cases occurred in an open-label dose ranging study.

Exhibit 2: Revised CYAD-01 NPV estimates

Indication

US deaths

Peak share

Potential sales US$m

Probability

NPV (US)

Global
$m

AML

10,460

50%

638

20%

95

140

MM

11,240

50%

686

20%

102

151

 Total

1,324

292

Colorectal

50,310

36%

2,721

20%

334

496

Ovarian

14,180

69%

1,464

20%

183

271

Bladder

16,,390

69%

1,692

10%

106

157

Breast

40,000

36%

2,163

10%

133

197

Pancreatic

39,590

69%

4,086

5%

128

190

 Total solid tumors

12,125

883

1,310

Weighted average of one solid tumor

238

Source: Edison Investment Research

There are two technical adjustments:

The exchange rate used formerly was US$1.06/€. The current rate now used is US$1.176/€, therefore decreasing the value in euro terms. The major market expected is the US.

The number of share was 9.53m by 2 August after some options were exercised. The issue of 328.6k new shares (calculated by Edison) in relation to the Celdara and Dartmouth College $12.5m equity payment will take the total number to 9.86m. The shares in the deal will be issued at a 14% premium at $38.17 but only cause 3.4% of dilution.

This gives a revised indicative value estimated by Edison of US$616m, implying US$61 per ADR, Exhibit 3. This is based on only one solid indication reaching the market. This is very cautious as these estimates are already risk-adjusted.

Exhibit 3: Revised value estimate

Item

Indication

Probability

Value ($m)

CAR values

AML

20.0%

126.5

 

MM

20.0%

136.0

 

Solid tumors (weighted average of one success)

Variable

237.9

 

Allogeneic

 

58.8

CAR value

 

 

559.2

C-Cure partnered value (milestones plus royalties)

 

35.0%

191.0

Net operating costs

(Risk adjusted 2017-23)

 

-158.9

Additional royalties

 

25.0

Total indicative value

 

 

616.3

Shares (m)

 

 

9.86

Warrants and options (m)

 

 

0.30

Core value per share ($)

 

 

60.7

Source: Edison Investment Research

As a scenario, if all five current solid indications are included, the value would be US$1.5bn and US$153 per ADR; note that developing, producing and marketing five solid CAR T-cell cancer indications would require extra capital, implying substantial dilution. The C-Cure cardiac therapy value of $191m requires a partner to fund the CHART-2 study needed.

Exhibit 4: Financial summary

US$'000s

2015

2016

2017e

2018e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

3

9,461

9,191

9,990

Cost of Sales

(1)

(59)

0

0

Gross Profit

2

9,402

9,191

9,990

EBITDA

 

 

(30,907)

(26,712)

(29,659)

(27,417)

Operating Profit (before amort and except)

 

 

(31,210)

(27,556)

(30,503)

(28,261)

Intangible Amortization

(844)

(839)

(839)

(839)

Other income and charges

0

(578)

0

0

Share-based payments

(882)

547

0

0

Operating Profit

(32,936)

(28,426)

(31,342)

(29,100)

Net Interest

619

2,217

278

278

PTP (norm)

 

 

(30,590)

(25,339)

(30,225)

(27,983)

PTP (FRS 3)

 

 

(32,317)

(26,209)

(31,064)

(28,822)

Tax

0

7

0

0

PAT (norm)

(30,590)

(21,625)

(30,225)

(27,983)

PAT (FRS 3)

(32,317)

(26,203)

(31,064)

(28,822)

Average number of ADRs outstanding (m)

8.7

9.3

9.5

9.5

EPADR - normalized ($)

 

 

(3.52)

(2.32)

(3.17)

(2.94)

EPADR - (IFRS) ($)

 

 

(3.72)

(2.32)

(3.26)

(3.03)

Dividend per ADR ($)

0.0

0.0

0.0

0.0

Gross Margin (%)

N/A

N/A

N/A

N/A

EBITDA Margin (%)

N/A

N/A

N/A

N/A

Operating Margin (before GW and except) (%)

N/A

N/A

N/A

N/A

BALANCE SHEET

Fixed Assets

 

 

55,617

59,318

81,399

79,883

Intangible Assets

54,156

55,018

77,776

76,937

Tangible Assets

1,261

3,955

3,278

2,601

Investments

200

345

345

345

Current Assets

 

 

121,456

94,756

52,177

23,636

Stocks

0

0

0

0

Debtors

609

1,508

1,508

1,508

Cash

119,339

91,672

49,093

20,551

Other

1,507

1,576

1,576

1,576

Current Liabilities

 

 

(12,754)

(12,515)

(12,229)

(11,640)

Creditors

(11,757)

(11,056)

(11,056)

(11,056)

Deferred revenue

0

0

0

0

Walloon loans for cash payment

(997)

(1,460)

(1,173)

(585)

Long Term Liabilities

 

 

(40,583)

(40,677)

(39,734)

(39,090)

Walloon loans (non-current)

(11,637)

(8,731)

(7,788)

(6,844)

Other long term liabilities

(28,945)

(31,946)

(31,946)

(32,246)

Net Assets

 

 

123,736

100,882

81,614

52,788

CASH FLOW

Operating Cash Flow

 

 

(30,927)

(29,625)

(30,184)

(27,282)

Net Interest

619

2,217

956

293

Tax

0

0

0

0

Capex

(930)

(1,978)

(23,763)

(167)

Acquisitions/disposals

(5,756)

(1,733)

0

0

Financing

121,162

0

11,798

0

Dividends

0

0

0

0

Other

(3,649)

3,451

(1,386)

(1,386)

Net Cash Flow

80,519

(27,668)

(42,579)

(28,541)

Opening net debt/(cash)

 

 

(17,847)

(106,705)

(81,481)

(40,132)

HP finance leases initiated

0

0

0

0

Walloon loan recognition (non-cash)

8,339

2,443

1,230

1,532

Closing net debt/(cash)

 

 

(106,705)

(81,481)

(40,132)

(13,122)

Source: Edison Investment Research estimates, Celyad reports and announcements. Note: The $25m 2017 payment is treated as an intangible asset expected to be amortized against sales income. The equity component is shown as an equity investment. The actual accounting treatment by Celyad may differ.

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2017 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Celyad and prepared and issued by Edison for publication globally. 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. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US 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. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and 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 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. This document is provided 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. Edison has a restrictive policy relating to personal dealing. 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. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. 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. 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 (ie 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. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2017. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

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

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, 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

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2017 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Celyad and prepared and issued by Edison for publication globally. 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. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US 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. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and 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 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. This document is provided 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.
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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

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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