Currency in SEK
Last close As at 25/03/2023
SEK6.28
— 0.00 (0.00%)
Market capitalisation
SEK1,108m
Research: Healthcare
Cantargia has announced that it has resolved to carry out a rights issue of approximately SEK250m. The proceeds of the raise will be used to fund the clinical development of Cantargia’s lead asset, the IL1RAP-targeting antibody, nadunolimab (CAN04), as well as progress its second antibody programme, CAN10. Encouraging clinical data was presented at ASCO and also at the company’s recent R&D day, which highlighted positive results from the CANFOUR programme in non-small cell lung cancer (NSCLC, Phase IIa) and first-line pancreatic ductal adenocarcinoma (PDAC, Phase I/IIa). Resolution of the rights issue is subject to approval by shareholders at an extraordinary general meeting to be held on 21 July. At the time of writing, Cantargia’s shares had decreased by c 30% on the news due to potential future dilution for existing shareholders.
Cantargia |
Announcement of rights issue |
Financing update |
Pharma and biotech |
23 June 2022 |
Share price performance Business description
Analysts
Cantargia is a research client of Edison Investment Research Limited |
Cantargia has announced that it has resolved to carry out a rights issue of approximately SEK250m. The proceeds of the raise will be used to fund the clinical development of Cantargia’s lead asset, the IL1RAP-targeting antibody, nadunolimab (CAN04), as well as progress its second antibody programme, CAN10. Encouraging clinical data was presented at ASCO and also at the company’s recent R&D day, which highlighted positive results from the CANFOUR programme in non-small cell lung cancer (NSCLC, Phase IIa) and first-line pancreatic ductal adenocarcinoma (PDAC, Phase I/IIa). Resolution of the rights issue is subject to approval by shareholders at an extraordinary general meeting to be held on 21 July. At the time of writing, Cantargia’s shares had decreased by c 30% on the news due to potential future dilution for existing shareholders.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
0.0 |
(173.1) |
(1.94) |
0.0 |
N/A |
N/A |
12/21 |
0.0 |
(370.3) |
(3.70) |
0.0 |
N/A |
N/A |
12/22e |
0.0 |
(368.5) |
(3.68) |
0.0 |
N/A |
N/A |
12/23e |
0.0 |
(369.1) |
(3.68) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The CAN04 programme continues to maintain momentum with positive data readouts initially introduced at ASCO and, more recently, at Cantargia’s R&D day. With all clinical data points now collated in the Phase I/IIa arm of the CANFOUR trial in PDAC, the company is preparing for the pivotal Phase II/III study in PDAC (in collaboration with PanCAN). The trial is currently going through the necessary regulatory approval process and is progressing according to plan. In the Phase IIa CANFOUR NSCLC trial additional patient data will be captured in 2022, the output of which will feed into the subsequent trial design with intended next steps being the initiation of a randomised study in 2023. Cantargia is also conducting investigations to broaden the CAN04 programme to target new indications and potential future growth opportunities. CAN10, which is being assessed for the treatment of autoimmune/inflammatory diseases, is planned to enter clinical development in early 2023.
Full terms of the rights issue are expected to be announced on or around 18 July, which will include the subscription price, increase in share capital and the number of new shares. The rights issue is fully backed by subscription undertakings and intentions from existing shareholders equivalent to c 35% and underwriting guarantee commitments equivalent to c 65%. With cash and short-term investments of SEK443m at end Q122, we believe Cantargia is funded well into 2023. We expect the issue to be completed by early August 2022, at which point we will update our forecasts.
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Research: Healthcare
Ultimovacs has announced positive two-year overall survival (OS) data from a Phase I study (n=30) of UV1, a potential universal cancer vaccine, in combination with PD-1 immunotherapy (pembrolizumab, Merck) for the treatment of malignant melanoma. In this, the UV1/pembrolizumab combination demonstrated a 73% two-year OS rate, adding to data reported in March 2022 showing a complete response rate of 33% and an objective response rate (ORR) of 57%. Patients will be followed for further long-term survival data and management expect to report three-year OS data for the first cohort (n=20) in Q422. We continue to see the UV1/pembrolizumab combination in malignant melanoma as a potentially significant opportunity for the company. We value Ultimovacs at NOK6.90bn, or NOK202/share.
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