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Market capitalisation
SEK435m
Research: Healthcare
Mendus has announced that it has been granted three abstracts, including an oral presentation at the American Society of Hematology (ASH) 2023 meeting, relating to the clinical development of vididencel as a maintenance therapy for acute myeloid leukaemia (AML). There are limited treatment options for AML maintenance, which is likely a key consideration in the selection of ADVANCE II data for an oral presentation. The update is anticipated to include relapse-free survival (RFS) and overall survival (OS) data on 11 December 2023, and if positive, could add to a growing package of validation for vididencel as a novel cancer maintenance treatment in AML and support its mode of action. We note that Mendus is also preparing for an additional Phase II combination trial with Onureg, which we view as a favourable strategic decision (on track to commence by end-2023). We note that interim results from ADVANCE II were previously reported in December 2022, showing a potentially competitive profile over the standard of care, Onureg.
Mendus |
ADVANCE II at ASH may be a near-term catalyst |
Clinical update |
Pharma and biotech |
2 November 2023 |
Share price performance
Business description
Analysts
Mendus is a research client of Edison Investment Research Limited |
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Mendus has announced that it has been granted three abstracts, including an oral presentation at the American Society of Hematology (ASH) 2023 meeting, relating to the clinical development of vididencel as a maintenance therapy for acute myeloid leukaemia (AML). There are limited treatment options for AML maintenance, which is likely a key consideration in the selection of ADVANCE II data for an oral presentation. The update is anticipated to include relapse-free survival (RFS) and overall survival (OS) data on 11 December 2023, and if positive, could add to a growing package of validation for vididencel as a novel cancer maintenance treatment in AML and support its mode of action. We note that Mendus is also preparing for an additional Phase II combination trial with Onureg, which we view as a favourable strategic decision (on track to commence by end-2023). We note that interim results from ADVANCE II were previously reported in December 2022, showing a potentially competitive profile over the standard of care, Onureg.
Year |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/21 |
0.0 |
(133.4) |
(0.73) |
0.0 |
N/A |
N/A |
12/22 |
3.4 |
(138.8) |
(0.70) |
0.0 |
N/A |
N/A |
12/23e |
0.3 |
(96.1) |
(0.18) |
0.0 |
N/A |
N/A |
12/24e |
0.0 |
(124.2) |
(0.14) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Mendus has announced the presentation of three abstracts for the 2023 ASH meeting and exposition in December. This includes updated RFS and OS data from the ongoing ADVANCE II clinical trial for lead cancer vaccine vididencel. We anticipate that the presentation could demonstrate the durable efficacy of vididencel, which management has noted contains survival data extending beyond the submission date of the ASH abstracts. If positive, this has the potential to support partnership discussions for future late-stage clinical development efforts, as well as providing a strong foundation for the initiation of the planned combination trial with Onureg, which is due to commence by end-2023.
Mendus has also shared abstracts relating to immunomonitoring, which form part of the vididencel programme in AML maintenance. These will present data demonstrating that responses in the skin and the blood support the mechanism of vididencel, based on the recruitment of immune cells after injection, and subsequent triggering of immune response against residual cancer cells. We believe these data should help on the regulatory front, as they provide validation of the cancer vaccine’s mode of action.
As a reminder, vididencel is designed to be an off-the-shelf cancer vaccine as a maintenance therapy to prevent relapse after remission for AML patients. The Phase II ADVANCE II trial (n=20) is currently in the long-term follow-up stage. Positive interim survival data were reported in December 2022. At a follow-up of 19.4 months, median RFS had not yet been reached, with 12 out of 20 patients still in complete remission, and median OS was recorded as 30.9 months. We note that this represents a potentially competitive profile over the current standard of care, Onureg, which has median RFS of 7.1 months and median OS of 14.6 months.
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Research: Real Estate
Dar Global is a developer of premium-priced luxury branded residences, led by a management team with a track record of successful long-term delivery. It employs a ‘capital-light’ business model that reduces risk and allows for rapid scalability. It is in the early stages of delivering over 5,700 residences in the Middle East and Europe, with an ambition to expand the portfolio in number and geography. It also intends to develop a hospitality portfolio. We anticipate that Dar Global will generate a return on equity in the high teens and we value the company on a multiple of shareholders’ funds basis at c US$930m (US$5.17/share), implying c 40% upside.