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Currency in SEK
Last close As at 02/06/2023
SEK1.49
▲ 0.04 (2.76%)
Market capitalisation
SEK59m
Research: Healthcare
Scandion Oncology has announced top-line data from part 2 of the Phase II CORIST trial, investigating the company’s sole clinical asset, SCO-101, as a treatment for chemotherapy resistant metastatic colorectal cancer (mCRC). The results confirm the safety and tolerability of SCO-101 in combination with FOLFIRI; however, the drug did not meet the 30% reduction in tumour size threshold required for clinical proof-of-concept (PoC). The company notes that tumour reductions have been seen in some patients and there is evidence of prolonged progression-free survival and stable disease in this population. Although the failure to demonstrate PoC at this stage is a disappointing result, we expect longer-term treatment data will need to be assessed before definitive conclusions on SCO-101’s efficacy can be drawn. In the absence of detailed clinical data, we maintain our valuation of Scandion Oncology at SEK609.5m or SEK15.0 per share; however, we will revisit this as more information on the top-line results is made public, expected on 4 October.
Scandion Oncology |
CORIST part 2 top-line data |
Clinical trial update |
Pharma and biotech |
30 September 2022 |
Share price performance
Business description
Analysts
Scandion Oncology is a research client of Edison Investment Research Limited |
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Scandion Oncology has announced top-line data from part 2 of the Phase II CORIST trial, investigating the company’s sole clinical asset, SCO-101, as a treatment for chemotherapy resistant metastatic colorectal cancer (mCRC). The results confirm the safety and tolerability of SCO-101 in combination with FOLFIRI; however, the drug did not meet the 30% reduction in tumour size threshold required for clinical proof-of-concept (PoC). The company notes that tumour reductions have been seen in some patients and there is evidence of prolonged progression-free survival and stable disease in this population. Although the failure to demonstrate PoC at this stage is a disappointing result, we expect longer-term treatment data will need to be assessed before definitive conclusions on SCO-101’s efficacy can be drawn. In the absence of detailed clinical data, we maintain our valuation of Scandion Oncology at SEK609.5m or SEK15.0 per share; however, we will revisit this as more information on the top-line results is made public, expected on 4 October.
Year end |
Revenue (DDKm) |
PBT* (DDKm) |
EPS* |
DPS |
P/E |
Yield |
12/20 |
1.0 |
(21.5) |
(0.53) |
0.0 |
N/A |
N/A |
12/21 |
0.8 |
(57.2) |
(1.61) |
0.0 |
N/A |
N/A |
12/22e |
0.8 |
(64.9) |
(1.66) |
0.0 |
N/A |
N/A |
12/23e |
0.8 |
(82.4) |
(1.89) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
We expect that Scandion will now begin to focus on CORIST part 3 to provide clinical PoC for SCO-101 in mCRC. In this, up to 36 patients will be treated with an optimised dosing schedule of SCO-101, based on findings from previous clinical trials. If CORIST part 3 remains on track, we expect results could be reported as soon as Q323 and the company will provide an updated timeline for SCO-101’s development in Q123. As a reminder, the primary endpoint for part 2 is objective response rate (extent of tumour reduction), defined as complete response and partial response using RECIST v 1.1. Secondary endpoints include progression-free survival, duration of response, overall survival and further biomarker analysis.
If Scandion can demonstrate clinical PoC in CORIST part 3, through a clinically meaningful reversal of resistance to FOLFIRI in mCRC patients, we believe this could result in a material re-rating of the stock. We expect the company to provide details on the CORIST part 2 results on 4 October and update investors on future timelines in Q123. We will revisit our valuation as more information is made public. For details of our valuation assumptions, see our recent initiation report.
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Research: Industrials
At its capital markets day (CMD) on 8 September, Kendrion reiterated its financial targets for 2025 (originally set in September 2020) and confirmed its strategic direction. The Industrial division is continuing strong growth in revenues and profitability (despite market challenges), while Automotive still is affected by supply chain constraints, inflation and volatile demand. The long-term growth outlook for Kendrion remains strong, based on the favourable trends of electrification and green energy. The average of three valuation methods points at a value per share of €21.7.
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