PARP inhibitor Phase II study initiates

Oncology Venture 2 July 2018 Update
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Oncology Venture

PARP inhibitor Phase II study initiates

Clinical update

Pharma & biotech

2 July 2018

Price

SEK17.50

Market cap

SEK242m

US$0.12/SEK

Net cash (SEKm) as of 31 March 2018

40.1

Shares in issue

13.8m

Free float

67%

Code

OV.SS

Primary exchange

AktieTorget

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

6.1

(1.7)

(36.1)

Rel (local)

4.9

(1.9)

(30.1)

52-week high/low

SEK31.5

SEK15.5

Business description

Oncology Venture is a Denmark-based biopharmaceutical company focused on oncology. Its patent-protected mRNA-based drug response predictor platform enables the identification of patients with gene expression highly likely to respond to treatment. To date the company has in-licensed six drug candidates with the intent to conduct focused Phase II clinical trials and then out-license the revamped drugs.

Next events

Last trading day of OV shares prior to merger with MPI

August 2018

Randomised Phase II LiPlaCis trial initiation

2018

Phase II LiPlaCis trial top-line data

H119

Analysts

Nathaniel Calloway

+1 646 653 7036

Maxim Jacobs

+1 646 653 7027

Oncology Venture is a research client of Edison Investment Research Limited

Oncology Venture (OV) recently announced the initiation of its open-label Phase II study of 2X-121, a dual PARP-1/2 and TNKS-1/2 inhibitor, as a single agent in patients with metastatic breast cancer (mBC). The first patient, selected by OV’s 2X-121 drug response predictor (DRP) mRNA biomarker, was dosed in late June 2018. Also, OV announced that its impending merger with the Medical Prognosis Institute (MPI) will happen in September 2018. OV shareholders will own 51% of the new company.

Year end

Revenue (SEKm)

PBT*
(SEKm)

EPS*
(SEK)

DPS
(SEK)

P/E
(x)

Yield
(%)

12/16

1.3

(40.5)

(3.33)

0.0

N/A

N/A

12/17

2.1

(64.9)

(5.28)

0.0

N/A

N/A

12/18e

1.7

(121.8)

(7.47)

0.0

N/A

N/A

12/19e

1.0

(238.5)

(13.92)

0.0

N/A

N/A

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

First patient dosed in 2X-121 Phase II trial

On 26 June 2018, OV announced the initiation of its Phase II 2X-121 study with the dosing of its first patient (of the 30-patient recruitment goal) with mBC selected by its 414-gene 2X-121 DRP algorithm. The primary endpoint of the open-label trial is overall tumour response according to RECIST at more than 24-weeks post-treatment. Top-line data are expected in H220. We expect the results of this trial to elucidate whether the DRP can prospectively identify responders to 2X-121.

Receives orphan drug designation for dovitinib

OV has also recently announced that it has received orphan drug designation from the FDA for the development of dovitinib (in-licensed from Novartis in January 2018) for the treatment of adenoid cystic carcinoma (ACC). ACC is a rare cancer of secretory glands and is associated with high metastases and historically poor response rates to systemic therapies. OV plans to further refine its dovitinib DRP biomarker to identify patients highly likely to respond to the drug.

Forthcoming merger expected in September 2018

OV has announced that its merger with MPI, which the board of directors approved in late May, will occur in September 2018. It expects the last trading day for OV shares will be 31 August 2018. Post-merger, the combined entity will comprise 50.3m shares and current OV shareholders will own 51% of the new company.

Valuation: SEK830.2m or SEK60.02 per share

Our valuation of OV remains unchanged at SEK830.2m or SEK60.02 per share based on a risk-adjusted NPV analysis of each in-licensed anticancer drug. Based on our estimations, we value the 2X-121 programme at SEK9.64 per share of OV. We expect to add the new dovitinib indication to our valuation if the company initiates a trial for ACC. Each programme is in Phase II development and therefore has significant financing needs (SEK610m by 2020) to bring all six of its anticancer programmes to Phase III out-licensing.

First mBC patient dosed in 2X-121 Phase II trial

On 26 June 2018, OV announced the initiation of its open label Phase II study of 2X-121 as a single agent in patients with mBC, with the dosing of its first patient (of the 30-patient recruitment goal) in Denmark. As a reminder, 2X-121 is an orally bioavailable small molecule and a dual PARP-1/2 and TNKS-1/2 inhibitor (previously named E7449, in-licensed from Eisai in July 2017). PARP enzymes repair single-strand DNA breaks and since BRCA1/2 mutated cells are incapable of double-strand break repair, PARP inhibition is particularly lethal and causes genomic instability and cell death.1

Dziadkowiec, K N (2016). PARP inhibitors: review of mechanisms of action and BRCA1/2 mutation targeting. PrzMenopauzalny 15(4), 215–219.

This new trial follows previous encouraging data from a 41-patient, open-label, dose escalation Phase I study of 2X-121 as a single agent in patients with advanced solid tumours (including pancreatic, ovarian, breast, colorectal, lung and other cancers), along with development and preliminary testing of the 414-gene 2X-121 DRP algorithm in 13 patients. The results were recently presented at the American Society of Clinical Oncology (ASCO) annual meeting in June. The maximum tolerated dose was identified as 600mg, which maintained PARP inhibition at approximately 90%. The 2X-121 DRP identified responders and non-responders with median overall survival of more than 800 days and 208 days, respectively. It is important to note this trial included cancers without regard to BRCA mutation status, where PARP inhibitors are more active.

Based on these results, OV will use its 2X-121 DRP to select the top 10% of patients with mBC who are highly likely to respond to the drug. Once selected to participate in the trial, patients will receive 600mg of 2X-121 orally, in a 21-day cycle. The primary endpoint of the trial is overall tumour response according to RECIST at more than 24-weeks post-treatment. The secondary endpoints include progression free survival, duration of response and overall survival (OS). OV is in possession of 13,000 capsules for initial studies. Additionally, the laboratory in Europe that will be running the DRP test is established with approximately 1,400 DRP screened patients with breast cancer, while the US lab is undergoing Clinical Laboratory Improvement Amendments (CLIA) validation. Top-line data are expected in H220. We expect the results of this trial to elucidate whether the DRP can prospectively identify responders to 2X-121.

Dovitinib receives orphan drug designation for ACC

Also in June, OV announced that it has received orphan drug designation from the FDA for the development of dovitinib for the treatment of ACC. As a reminder, OV in-licensed dovitinib, an oral tyrosine kinase inhibitor (TKI) that inhibits fibroblast growth factor (FGF), vascular endothelial growth factor (VEGF) and platelet-derived growth factor (PDGF) receptors from Novartis in January 2018. OV’s initial aim was to develop the drug and its DRP to identify patients with locally advanced or metastatic renal cell carcinoma (RCC) and liver cancer most likely to respond to treatment.

ACC is a rare, aggressive, and often indolent form of adenocarcinoma that typically originates in secretory glands such as the major and minor salivary glands of the head and neck. ACC can also occur in the trachea, lacrimal gland, breast, skin, and vulva, 2 although origination at these sites is less common. According to the National Cancer Institute, more than 1,220 patients in the US are diagnosed with ACC each year, or 0.4 per 100,000 men and women on an age-adjusted basis. Moreover, the disease is associated with three- and five-year relative survival rates of 87.4% and 55.3%, respectively.3 Treatment for localised ACC includes surgical resection of the tumour followed by postoperative radiotherapy. Due to the high rate of distant metastases4 and historically poor response rates of metastatic or recurrent ACC to chemotherapy,5 a number of alternative systemic therapies have been investigated, such as combination chemotherapy with platinum, hormonal therapy, immunotherapy, and biologic agents, including targeted HER-2, EGFR, and c-kit therapies.6 Several TKIs have also been investigated in the treatment of ACC, most notably, Sutent (sunitinib, Pfizer), Nexavar (sorafenib, Bayer) as well as dovitinib (Exhibit 1). However, only minimal activity has been found and there are currently no approved drug regimens for ACC. The strength in OV’s protocol lies in the ability of the dovitinib DRP to identify responders to the drug, which may improve outcomes.

The Oral Cancer Foundation.

Ko, Y.H., et al. (2007). Prognostic factors affecting the clinical outcome of adenoid cystic carcinoma of the head and neck. Japanese Journal of Clinical Oncology, 37(11), 805-811.

Spiro, R.H. (1997). Distant metastasis in adenoid cystic carcinoma of salivary origin. The American Journal of Surgery, 174(5), 495-498.

Lagha, A., et al. (2012). Systemic therapy in the management of metastatic or advanced salivary gland cancers. Head & Neck Oncology, 4, 19.

Chintakuntlawar, A., et al. (2016). Systemic therapy for recurrent or metastatic salivary gland malignancies. Cancers of the Head & Neck, 1(1).

Exhibit 1: TKIs for the treatment of ACC

Drug

No. of patients

ORR

Median OS (months)

Sutent

14

0%

18.7

Nexavar

23

11%

19.6

Dovitinib

35

6%

22.1

Dovitinib

32

3%

NR

Source: Chintakuntlawar et al. (2016).7 Notes: ORR= overall response rate; OS= overall survival; NR= not reported.

Chintakuntlawar, A., et al. (2016).

OV first plans refine its dovitinib DRP biomarker to identify patients highly likely to respond to dovitinib using an ample amount of data provided by Novartis. We then expect future trials to elucidate whether the dovitinib DRP can identify responders with ACC to the drug. If the company decides to pursue this indication in parallel to RCC and liver cancer, it could increase the value of the asset as well as hedge on potential shortcomings of the other programmes.

Valuation

Our valuation of OV remains unchanged at SEK830.2m or SEK60.02 per share, derived from a risk-adjusted NPV analysis on the future earnings of six active clinical programmes; as standard practice, this includes costs associated with each asset (Exhibit 2). We expect to add the new dovitinib indication to our valuation if the company initiates a trial for ACC. OV has announced that it has the option to buy back 35% of the shares in its incorporated subsidiary OV-SPV2 (c 40% owned by OV, 10% owned by MPI, 50% owned by Sass & Larsen Aps) for $3.5m before 31 August 2018. This transaction may increase OV’s stake in the programme (from 40% to 75%) and should provide significant upside given our current valuation of OV-SPV2’s only asset, dovitinib. Post-merger, the combined entity will be comprised of 50.3m shares and current OV shareholders will own 51% of the new company.

Exhibit 2: Valuation of OV

Development Program

Indication

Clinical stage

Prob. of success

Launch year

Launch pricing

Peak sales ($m)

rNPV (mSEK)

% owned by OV

OV rNPV (mSEK)

LiPlaCis

Metastatic breast cancer

Phase II

25%

2023

$91,000

190.6

388.8

29%

112.7

Irofulven

Prostate cancer

Phase Ib/II

20%

2023

$129,000

52.6

52.4

100%

52.4

APO010

Multiple myeloma

Phase Ib/II

20%

2023

$143,000

80.9

81.7

100%

81.7

2X-121

Metastatic breast cancer and ovarian cancer

Phase II

25%

2023

$132,000

116.4

144.7

92%

133.1

2X-111

Glioblastoma and brain metastases from breast cancer

Phase Ib/II

25%

2024

$169,000

212.6

272.3

92%

250.5

Dovitinib

Renal and liver cancer

Phase Ib/II

35%

2024

$145,000

152.0

399.0

40%

159.6

Total

 

 

 

 

 

 

 

 

790.1

Net cash and equivalents (as of 31 March 2018) (SEKm)

40.1

Total firm value (SEKm)

830.2

Total shares (m)

13.8

Value per basic share (SEK)

60.02

Source: Edison Investment Research

Financials

As a standalone company, our forecasts for OV model a total of SEK610m (SEK60m in 2018, SEK300m in 2019, and SEK250m in 2020) in R&D expenditure, which we record as illustrative debt, to bring all six of its anticancer programmes to Phase III out-licensing (Exhibit 3). However, following the merger, we expect MPI’s cash (DKK3.3m at end FY17) to partially offset this funding requirement. Such financial requirements may be offset further via selling or out-licensing Phase III-ready drugs. These estimates are based on the expected trial cost per patient ($100,000) and Phase II clinical trial size. Our combined R&D forecasts remain unchanged, with SEK74m in 2018 and SEK194m in 2019. These costs are primarily associated with the advancement of the LiPlaCis programme into Phase IIb, ongoing irofulven and APO010 Phase IIa clinical trials. They also include 2X Oncology’s recent initiation of its Phase II 2X-121 trial and its 2X-111 development programme, which is expected to initiate this year.

Due to the forthcoming merger between OV and MPI, which the board of directors approved in late May, we expect these financials to change to reflect the new entity.

Exhibit 3: Financial summary

SEK'000s

2016

2017

2018e

2019e

Year end 31 December

Swedish GAAP

Swedish GAAP

Swedish GAAP

Swedish GAAP

PROFIT & LOSS

Revenue

 

 

 

1,305

2,091

1,727

978

Cost of Sales

0

0

0

0

Gross Profit

1,305

2,091

1,727

978

EBITDA

 

 

 

(43,408)

(81,001)

(127,386)

(250,200)

Operating Profit (before amort. and except.)

 

(40,874)

(67,462)

(124,367)

(247,181)

Intangible Amortisation

0

0

0

0

Exceptionals/Other

0

0

0

0

Operating Profit

(40,874)

(67,462)

(124,367)

(247,181)

Net Interest

346

2,588

2,562

8,674

Other (change in fair value of warrants)

0

0

0

0

Profit Before Tax (norm)

 

 

 

(40,528)

(64,874)

(121,804)

(238,507)

Profit Before Tax (IFRS)

 

 

 

(40,528)

(64,874)

(121,804)

(238,507)

Tax

6,985

7,114

13,357

26,154

Deferred tax

0

0

0

0

Profit After Tax (norm)

(33,543)

(57,760)

(108,448)

(212,353)

Profit After Tax (IFRS)

(33,543)

(57,760)

(108,448)

(212,353)

Average Number of Shares Outstanding (m)

10.1

10.9

14.5

15.3

EPS - normalised (ore)

 

 

 

(332.94)

(527.74)

(746.66)

(1,392.43)

EPS - IFRS (SEK)

 

 

 

(3.33)

(5.28)

(7.47)

(13.92)

Dividend per share (ore)

0.0

0.0

0.0

0.0

BALANCE SHEET

Fixed Assets

 

 

 

19,767

45,384

44,517

42,784

Intangible Assets

18,885

44,633

43,766

40,747

Tangible Assets

624

485

467

1,753

Other

258

266

284

284

Current Assets

 

 

 

38,450

33,830

34,777

142,882

Stocks

316

9,149

10,540

10,540

Debtors

6,841

2,593

4,868

9,533

Cash

18,872

11,978

10,417

113,857

Other

12,421

10,110

8,952

8,952

Current Liabilities

 

 

 

(11,820)

(32,461)

(38,901)

(56,600)

Creditors

(11,820)

(32,461)

(38,901)

(56,600)

Short term borrowings

0

0

0

0

Long Term Liabilities

 

 

 

0

0

(60,256)

(361,282)

Long term borrowings

0

0

(60,256)

(361,282)

Other long term liabilities

0

0

0

0

Net Assets

 

 

 

46,397

46,753

(19,864)

(232,217)

CASH FLOW

Operating Cash Flow

 

 

 

(36,066)

(48,216)

(98,463)

(195,273)

Net Interest

346

0

0

0

Tax

0

0

(1,682)

0

Capex

882

(8)

(2,557)

(1,286)

Acquisitions/disposals

(2,296)

(19,943)

0

0

Financing

39,523

60,702

39,457

0

Dividends

0

0

0

0

Other

0

0

0

0

Net Cash Flow

2,389

(7,465)

(63,245)

(196,560)

Opening net debt/(cash)

 

 

 

(16,786)

(18,872)

(11,978)

51,664

HP finance leases initiated

0

0

0

0

Exchange rate movements

(303)

571

(397)

0

Other

0

0

0

799

Closing net debt/(cash)

 

 

 

(18,872)

(11,978)

51,664

247,425

Source: Company reports, Edison Investment Research. Note: Financial summary reflects OV as a single entity, ahead of proposed merger with MPI.

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 Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Oncology Venture 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 Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. 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 2018. “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 Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Oncology Venture 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 Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. 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 2018. “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

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