Currency in SEK
Last close As at 07/06/2023
SEK8.42
▲ 0.08 (0.96%)
Market capitalisation
SEK436m
Research: Healthcare
IRLAB has announced an agreement with the McQuade Center for Strategic Research and Development (MSRD), a member of the Otsuka family of pharmaceutical companies. As part of this agreement, MSRD will evaluate IRLAB’s neuropsychiatric preclinical programmes: IRL757 (apathy) and IRL942 (cognitive function). MSRD searches for, identifies and funds innovative early-stage R&D programmes that it believes have the potential to build the future portfolio of Otsuka products. We view this external interest from MSRD as encouraging for IRLAB’s preclinical portfolio; discussions are expected in coming months regarding a potential R&D collaboration for these programmes.
IRLAB Therapeutics |
Collaboration bolsters CNS assets and platform |
Operational update |
Healthcare |
17 May 2023 |
Share price performance Business description
Analysts
IRLAB Therapeutics is a research client of Edison Investment Research Limited |
IRLAB has announced an agreement with the McQuade Center for Strategic Research and Development (MSRD), a member of the Otsuka family of pharmaceutical companies. As part of this agreement, MSRD will evaluate IRLAB’s neuropsychiatric preclinical programmes: IRL757 (apathy) and IRL942 (cognitive function). MSRD searches for, identifies and funds innovative early-stage R&D programmes that it believes have the potential to build the future portfolio of Otsuka products. We view this external interest from MSRD as encouraging for IRLAB’s preclinical portfolio; discussions are expected in coming months regarding a potential R&D collaboration for these programmes.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/21 |
207.9 |
91.1 |
1.76 |
0.0 |
N/A |
N/A |
12/22 |
61.3 |
(113.1) |
(2.18) |
0.0 |
N/A |
N/A |
12/23e |
0.2 |
(208.4) |
(4.02) |
0.0 |
N/A |
N/A |
12/24e |
0.2 |
(190.2) |
(3.67) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
IRLAB has announced the signing of an agreement with MSRD, an Otsuka company. MSRD will exclusively carry out an evaluation and scientific review of assets IRL757 and IRL942, which form part of IRLAB’s preclinical portfolio discovered through its proprietary central nervous system (CNS) discovery platform, ISP. In exchange, IRLAB will receive an upfront payment from MSRD. Further details on this are yet to be disclosed, but we assume that this will not be significant and will not materially affect the company’s financials standings. After the evaluation process, IRLAB and MSRD will discuss the possibility of expanding activities into a collaboration to continue the development of these assets.
IRLAB specialises in therapies for all stages of Parkinson’s disease (PD), and while the company has two assets in Phase II trials (mesdopetam and pirepemat), it is also focused on progressing preclinical assets towards Phase I studies. IRL757 is being developed for the treatment of apathy. According to management, this debilitating condition has a prevalence of up to 70% in PD patients, and up to 90% in patients with Alzheimer’s disease or other CNS-related disorders. IRL757 has shown promising preclinical efficacy in several models, working by reversing the disruption of cortical to sub-cortical nerve signalling, a proposed underlying mechanism for apathy. IRL942 is being developed as a treatment to improve cognitive function. According to management, c 12% of adults aged 65 years or over experience cognitive impairment, and the prevalence is believed to be higher in patients with neurological disorders. IRL942 is designed to activate frontal cortical neurotransmission, a process that when disrupted has been associated with cognitive decline in patients with PD or other neurological disorders.
We view the agreement with MSRD as an encouraging step forward for IRLAB’s preclinical portfolio and CNS development platform, and believe that the external interest from MSRD highlights the market potential for IRL757 and IRL942. In the coming months, further discussions are expected regarding a potential R&D collaboration for these programmes.
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Research: Financials
Secure Trust Bank (STB) beat expectations in FY22 as it continued its strategy of growing exposure to prime lending products and utilising its proprietary technology. Driven by prime lending growth, operating income from continuing operations rose 14% to £169.6m which, combined with the ongoing cost efficiency programme, led to 28% pre-impairment PBT growth. PBT from continuing operations fell to £39.0m (£55.9m) as impairments normalised following one-off releases which benefited STB in FY21. STB shows positive signs of increasing its market share in the prime lending segment, which we reflect in our FY23 and FY24 forecasts.
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