Oxford Cannabinoid Technologies — Clinical headway rests on funding

Oxford Cannabinoid Technologies (LSE: OCTP)

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Research: Healthcare

Oxford Cannabinoid Technologies — Clinical headway rests on funding

Oxford Cannabinoid Technologies (OCT) has shared its FY23 results and summarised its ongoing activities. OCT completed preclinical research for OCT461201 (programme 1) and in July 2023 the first healthy volunteer was dosed in the Phase I safety study; results are expected in Q3 CY23. Management believes this programme will be Phase II ready by Q4 CY23, and plans to target neuropathic pain associated with chemotherapy-induced peripheral neuropathy (CIPN) and visceral pain in irritable bowel syndrome (IBS). OCT also completed preclinical research for OCT130401 (programme 2) and announced the company’s expansion into oncology (programme 4). As we push out our launch timelines for programme 1 to FY30 (FY29 previously; FY27 estimated by management) to reflect the current halt in development, update net cash and roll forward the model, our valuation adjusts to £25.3m or 2.6p per share (£26.1m or 2.7p/share previously). In line with management guidance, we have updated our cash runway to Q424 (Q124 previously) but emphasise the imminent need to raise funds to advance clinical activities.

Soo Romanoff

Written by

Soo Romanoff

Managing Director - Head of Content, Healthcare

Healthcare

Oxford Cannabinoid Technologies

Clinical headway rests on funding

FY23 results

Pharma and biotech

12 September 2023

Price

0.88p

Market cap

£9m

US$1.27/£

Net cash (£m) at 30 April 2023

2.3

Shares in issue

960.4m

Free float

62.8%

Codes

OCTP, OCTHF

Primary exchanges

LSE, OTC QB (US)

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(31.4)

(23.9)

20.7

Rel (local)

(31.0)

(23.0)

19.5

52-week high/low

1.5p

0.5p

Business description

Oxford Cannabinoid Technologies is a UK drug development company focused on advancing cannabinoid medicines for the treatment of pain and other indications. Its lead asset is OCT461201, a CB2 selective agonist to be investigated for the treatment of neuropathic pain associated with CIPN and visceral pain in IBS as initial pain indications.

Next events

OCT461201 Phase I trial results

Q3 CY23

Analysts

Soo Romanoff

+44 (0)20 3077 5700

Dr Arron Aatkar

+44 (0)20 3077 5700

Nidhi Singh

+44 (0)20 3077 5700

Oxford Cannabinoid Technologies is a research client of Edison Investment Research Limited

Oxford Cannabinoid Technologies (OCT) has shared its FY23 results and summarised its ongoing activities. OCT completed preclinical research for OCT461201 (programme 1) and in July 2023 the first healthy volunteer was dosed in the Phase I safety study; results are expected in Q3 CY23. Management believes this programme will be Phase II ready by Q4 CY23, and plans to target neuropathic pain associated with chemotherapy-induced peripheral neuropathy (CIPN) and visceral pain in irritable bowel syndrome (IBS). OCT also completed preclinical research for OCT130401 (programme 2) and announced the company’s expansion into oncology (programme 4). As we push out our launch timelines for programme 1 to FY30 (FY29 previously; FY27 estimated by management) to reflect the current halt in development, update net cash and roll forward the model, our valuation adjusts to £25.3m or 2.6p per share (£26.1m or 2.7p/share previously). In line with management guidance, we have updated our cash runway to Q424 (Q124 previously) but emphasise the imminent need to raise funds to advance clinical activities.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

04/22

0.0

(5.1)

(0.49)

0.0

N/A

N/A

04/23

0.0

(7.0)

(0.61)

0.0

N/A

N/A

04/24e

0.0

(2.9)

(0.25)

0.0

N/A

N/A

04/25e

0.0

(9.9)

(0.87)

0.0

N/A

N/A

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

OCT461201 Phase I trial under way

The first-in-human, randomised, double-blind, placebo-controlled, dose-escalation trial is ongoing, with the first participant dosed in July 2023. The study will recruit 32 healthy volunteers to assess safety and tolerability. Patients are split into four cohorts of eight and randomised (3:1) to receive OCT461201 (six patients per cohort) or placebo (two patients per cohort); results are on track for Q3 CY23. We expect the subsequent Phase II trial to involve CIPN and IBS patients, but OCT may use the Phase I results as a platform to explore additional indications.

Financing required for clinical advancement

With net cash at £2.3m at end-FY23 and the current hold on clinical activities (except OCT461201), we expect OCT to raise funds in H224, with an anticipated cash burn rate of £2.9m in FY24 (£11.3m previously). We forecast a total fund raise of £40m through FY26 (£15m in both FY24 and FY25; £10m in FY26), modelled as illustrative debt. We highlight that the fund raise remains critical to the clinical advancement of OCT’s clinical assets, including the Phase II trial for OCT461201.

Valuation: £25.3m or 2.6p per share

Our valuation adjusts to £25.3m or 2.6p/share (£26.1m or 2.7p/share previously). The decline is driven by pushing out our product launch timelines for programme 1 to FY30, and the combined effect of model roll forward, revision of FY24 estimates and updated net cash balance. We value OCT based on a risk-adjusted net present value (rNPV) using a 12.5% discount rate, including OCT461201 in IBS and CIPN.

An expandable pipeline comprised of four programmes

OCT is focused on the development of new chemical entities (NCEs), phytocannabinoids (synthetic plant-derived cannabinoids) and cannabinoid derivatives. The company has a drug development pipeline comprised of four programmes, targeting pain and oncology indications (Exhibit 1).

Exhibit 1: OCT’s drug development pipeline

Source: Oxford Cannabinoid Technologies website

OCT461201 (programme 1): this lead asset is a cannabinoid receptor type 2 (CB2) selective NCE agonist. OCT is focused on neuropathic pain associated with CIPN and visceral pain in IBS, as initial indications, which have treatment markets projected to be worth $1.17bn by 2028 and $4.7bn by 2030, respectively. Preclinical work was completed in Q4 CY22, providing encouraging indicators of efficacy in neuropathic pain and IBS animal disease models (further details in our initiation note). Management has stated that results from the Phase I trial are expected in Q3 CY23, and that the project should be Phase II ready by Q4 CY23, consistent with prior guided timelines.

OCT130401 (programme 2): OCT’s second asset is an inhaled phytocannabinoid drug/device combination. It has been designed for the treatment of trigeminal neuralgia, a severe neuropathic facial pain indication colloquially referred to as the ‘Suicide Disease’ as it is associated with sudden chronic pain in the head and face, and has been likened to feeling a sharp shooting pain or electric shock in the jaw, teeth and gums. We note that orphan designation has been granted for this asset, enabling seven years of market exclusivity in the United States, and 10 years in Europe and Japan, if successful with regulatory approval. OCT believes that the inhaler-style of the drug/device should support patient compliance, offering fast delivery and action. Preclinical research for OCT130401 was completed during FY23, and the company plans to conduct a Phase I trial in Australia, subject to additional funding, and hence this Phase I-ready programme is currently on hold.

Programmes 3 and 4: the company’s third and fourth assets come from OCT’s library of cannabinoid derivatives, comprised of proprietary and in-licensed compounds (475 synthetic derivatives of cannabinoids (CBD, THC)). These have been chemically optimised to improve properties such as bioavailability, and the company is in the process of filing for patent protection for these assets. While management has not yet disclosed the neuropathic pain indication for OCT960609 (programme 3), it has confirmed the asset is a dual CB1/CB2 agonist, and early studies suggest it may have a better profile than THC in terms of analgesia and behavioural alterations. For programme 4, OCT announced in July 2023 that this asset, an immunotherapy agent, will target solid tumours, diversifying the company’s pipeline beyond pain indications. We note that programmes 3 and 4 will also be put on hold once they reach preclinical and lead stages, respectively, so that OCT can focus on the clinical development of programme 1.

Financials

In FY23, the company reported an operating loss of £7.0m, a 27.8% y-o-y increase compared to £5.5m in FY22, noting the lower operating loss of £2.5m in H223 as compared to £4.5m in H123. The higher operating loss in FY23 was primarily led by higher research costs at £4.3m (vs £2.9m in FY22), mainly related to preclinical activities for OCT461201 (£2.0m) and OCT130401 (£1.9m), along with minor allocations to other development programmes. Administrative expenses were up 15.1% y-o-y to £2.7m, which included £1.4m in salaries. Reflecting the higher operating expenses, OCT recorded operating cash outflows of £6.9m in FY23 as compared to £5.4m in FY22.

We note that OCT ended FY23 with a net cash balance of £2.3m, which management expects to provide a cash runway into April 2024. This implies that OCT will likely cut down its research and administrative expenses during the year to create some operational headroom before an anticipated capital raise in H224. As a reminder, we assume a £15m capital raise in FY24, which we have modelled as illustrative debt. In line with management guidance, we have reduced our FY23 estimates for research costs to £1.0m (£8.5m previously), assuming all development activities (except the Phase I trial of OCT461201) remain on hold until the imminent capital raise. We expect OCT to move ahead with the Phase II trial for OCT461201 and other clinical/preclinical activities only after an expected capital raise in H224. As a reminder, our trial timelines forecast product launch in FY30, which differs from OCT’s communicated timeline of FY27, as we have been more conservative in our assumptions. To reflect the current cash crunch, we have also reduced our FY24 estimates for administrative expenses to £1.9m (£2.8m previously).

After incorporating the above-mentioned changes (along with minor changes based on the FY23 results), our operating cash burn for FY24 stands at £2.9m, which we believe will be H224-loaded and should provide a cash runway into Q424, in line with management guidance. We have also introduced FY25 estimates, with an expected operating loss of £9.9m, including £7.5m in research costs. We project that the company will resume its development activities in FY25, after raising capital in H224.

Valuation

To incorporate the cash constraints and current halt in development activities, we have pushed out our launch timelines for OCT461201 in both IBS and CIPN indications to FY30 (vs FY29 previously). We note our trial timeline forecasts for product launch differ from OCT’s communicated timeline of FY27, as we have been more conservative in our assumptions. We now expect the Phase II trial to conclude in FY26 (FY25 previously), prior to which we expect OCT to take on all R&D expenses. Reflecting these changes, we now project the company to secure a licensing deal in FY27 as compared to FY26 previously. More details on assumed licensing deals are covered in our initiation note.

Our valuation for OCT adjusts to £25.3m or 2.6p per share (£26.1m or 2.7p/share previously), mainly due to the pushed out launch timelines, along with the combined impact from rolling forward the model, estimate changes and an updated net cash balance. As a reminder, our valuation is primarily based on an rNPV of the company’s lead asset, OCT461201.

We continue to estimate the need for a £40m fund raise across FY24–26, which is shown as illustrative debt in our model. If these funds are raised through an equity issue, OCT would need to issue an additional 4,545m shares (at the current share price of 0.88p), which would dilute our per share valuation to 1.2p per share, from 2.6p per share currently.

Exhibit 2: OCT NPV valuation

Product

Indication

Clinical stage

Launch

Peak sales ($m)

Value
($m)

Probability

rNPV
(£m)

rNPV/share (p)

OCT461201

IBS

Phase 1

FY30

1,612

20.2

10%

15.9

1.66

CIPN

Phase 1

FY30

932

9.0

10%

7.1

0.74

Net cash at end FY23

 

 

 

 

2.9

100%

2.3

0.24

Valuation

 

 

 

 

32.2

 

25.3

2.64

Source: Edison Investment Research. Note: WACC = 12.5%.

Exhibit 3: Financial summary

£000s

2022

2023

2024e

2025e

Year-end April

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

0

0

0

0

Cost of Sales (Research costs)

(2,891)

(4,304)

(1,000)

(7,500)

Gross Profit

 

 

(2,891)

(4,304)

(1,000)

(7,500)

Administrative expenses

(2,320)

(2,670)

(1,869)

(2,430)

Exceptional items

(292)

(64)

0

0

EBITDA

 

 

(5,054)

(6,935)

(2,862)

(9,930)

Depreciation

(23)

0

0

0

Amortisation

(36)

(39)

(7)

0

Operating profit (before amort. and excepts.)

 

 

(5,113)

(6,974)

(2,869)

(9,930)

Share-based payments

(292)

(64)

0

0

Exceptionals

0

0

0

0

Operating Profit

(5,503)

(7,038)

(2,869)

(9,930)

Net Interest

0

4

9

59

Profit Before Tax (norm)

 

 

(5,113)

(6,970)

(2,860)

(9,871)

Profit Before Tax (reported)

 

 

(5,503)

(7,034)

(2,860)

(9,871)

Tax

791

1,089

443

1,528

Profit After Tax (norm)

(4,322)

(5,881)

(2,417)

(8,343)

Profit After Tax (reported)

(4,712)

(5,945)

(2,417)

(8,343)

Average Number of Shares Outstanding (m)

960.4

960.4

960.4

960.4

EPS - normalised fully diluted (p)

 

 

(0.49)

(0.61)

(0.25)

(0.87)

Dividend per share (c)

0.0

0.0

0.0

0.0

BALANCE SHEET

Fixed Assets

 

 

46

7

0

0

Intangible Assets

46

7

0

0

Tangible Assets

0

0

0

0

Other assets

0

0

0

0

Current Assets

 

 

11,772

4,488

17,108

23,796

Stocks

0

0

0

0

Debtors

2,607

2,191

2,301

2,416

Cash

9,166

2,297

14,807

21,380

Other

0

0

0

0

Current Liabilities

 

 

(2,025)

(584)

(613)

(644)

Creditors

(2,025)

(584)

(613)

(644)

Short term borrowings

0

0

0

0

Other current liabilities

0

0

0

0

Long Term Liabilities

 

 

0

0

(15,000)

(30,000)

Long term borrowings

0

0

(15,000)

(30,000)

Other long term liabilities

0

0

0

0

Net Assets

 

 

9,793

3,912

1,495

(6,848)

CASH FLOW

Operating Cash Flow

 

 

(5,373)

(6,868)

(2,490)

(8,427)

Net Interest

0

4

0

0

Tax

0

170

443

1,528

Capex

3

0

0

0

Acquisitions/disposals

0

0

0

0

Financing

0

0

0

0

Dividends

0

0

0

0

Net Cash Flow

(5,371)

(6,694)

(2,048)

(6,899)

Opening net cash/(debt)

 

 

14,581

9,166

2,297

(193)

Other

0

0

0

0

Closing net cash/(debt)

 

 

9,166

2,297

(193)

(8,620)

Source: Company reports, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Oxford Cannabinoid Technologies and prepared and issued by Edison, in consideration of a fee payable by Oxford Cannabinoid Technologies. Edison Investment Research standard fees are £60,000 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 2023 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.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by Oxford Cannabinoid Technologies and prepared and issued by Edison, in consideration of a fee payable by Oxford Cannabinoid Technologies. Edison Investment Research standard fees are £60,000 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 2023 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.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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