Last close As at 05/08/2026
EUR3.26
▲ 0.05 (1.56%)
Market capitalisation
EUR77m
Research: Healthcare
OSE Immunotherapeutics (OSE) has announced the receipt of €10m in financing from the European Investment Bank (EIB), which we estimate will secure management’s communicated cash runway into Q323. The funding has been received as the second tranche of a facility that was previously agreed with the EIB, with the first €10m having being drawn down by the company in July 2021. The funding comes with a linked warrant issue that gives the EIB the potential right to 2.97% of share capital (undiluted), if exercised from 2027. While this is potentially dilutive for investors, the company has arrangements in place to limit the risk of dilution. The €10m will provide support to OSE’s development programmes, in our view, as FY23 is expected to see Tedopi (the company’s cancer vaccine) enter a second Phase III clinical trial in non-small cell lung cancer. We value OSE at €398.3m or €21.5 per share (previously €398.4m or €21.5 per share).
Written by
OSE Immunotherapeutics |
€10m funding secures runway to Q323 |
Funding update |
Pharma and biotech |
20 December 2022 |
Share price performance
Business description
Next events
Analysts
OSE Immunotherapeutics is a research client of Edison Investment Research Limited |
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OSE Immunotherapeutics (OSE) has announced the receipt of €10m in financing from the European Investment Bank (EIB), which we estimate will secure management’s communicated cash runway into Q323. The funding has been received as the second tranche of a facility that was previously agreed with the EIB, with the first €10m having being drawn down by the company in July 2021. The funding comes with a linked warrant issue that gives the EIB the potential right to 2.97% of share capital (undiluted), if exercised from 2027. While this is potentially dilutive for investors, the company has arrangements in place to limit the risk of dilution. The €10m will provide support to OSE’s development programmes, in our view, as FY23 is expected to see Tedopi (the company’s cancer vaccine) enter a second Phase III clinical trial in non-small cell lung cancer. We value OSE at €398.3m or €21.5 per share (previously €398.4m or €21.5 per share).
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
10.4 |
(18.5) |
(1.02) |
0.0 |
N/A |
N/A |
12/21 |
26.3 |
(16.5) |
(0.89) |
0.0 |
N/A |
N/A |
12/22e |
16.0 |
(28.6) |
(1.33) |
0.0 |
N/A |
N/A |
12/23e |
0.0 |
(46.2) |
(2.53) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Runway to Q323 secured; further funding needed
We view the new funding tranche as positive news for the company which, by our estimates, will see OSE funded to Q323, in line with management guidance. At this point the company will need to raise additional funds to fund operations. As we expect OSE’s most advanced asset, Tedopi, to enter another Phase III clinical trial in FY23, we anticipate the company will need to raise c €60m (modelled as illustrative debt) to fund development to end-FY24. We note that delays or unexpected milestone payments may change our funding estimates.
Potentially dilutive but controls in place
In combination with the €10m loan (which bears a 5% interest rate), 550,000 OSE shares (2.97% of share capital) are available to the EIB through warrants. These may not be exercised until after 16 December 2027 (except in the event of an early exercise event such as a change in control), at which point the EIB and OSE retain a put and call option, respectively, with various conditions attached. In our view, these agreements somewhat limit the dilution risk associated with these warrants.
Valuation: €398.3m or €21.5 per share
We value OSE at €398.3m or €21.5 per share (previously €398.4m or €21.5 per share). Our new valuation incorporates an estimated net debt position of €17.8m at 31 December 2022 (previously end-June net cash of €0.3m), reflecting the new EIB loan and an estimated €9.0m net cash outflow during FY22. This increase in net debt is offset by rolling our model forward two months and updating our foreign exchange forecasts.
Exhibit 1: Financial summary
€000s |
2020 |
2021 |
2022e |
2023e |
||
December |
IFRS |
IFRS |
IFRS |
IFRS |
||
PROFIT & LOSS |
||||||
Revenue |
|
|
10,431 |
26,306 |
16,047 |
0 |
Cost of Sales |
0 |
0 |
0 |
0 |
||
Gross Profit |
10,431 |
26,306 |
16,047 |
0 |
||
Research and development |
(22,355) |
(30,550) |
(30,550) |
(30,550) |
||
EBITDA |
|
|
(18,109) |
(13,601) |
(25,343) |
(42,346) |
Operating Profit (before amort. and excepts.) |
|
|
(18,533) |
(15,938) |
(27,255) |
(43,685) |
Intangible Amortisation |
(457) |
(687) |
0 |
0 |
||
Exceptionals |
0 |
0 |
0 |
0 |
||
Other |
0 |
0 |
0 |
0 |
||
Operating Profit |
(18,990) |
(16,625) |
(27,255) |
(43,685) |
||
Net Interest |
0 |
(589) |
(1,335) |
(2,557) |
||
Profit Before Tax (norm) |
|
|
(18,533) |
(16,527) |
(28,590) |
(46,242) |
Profit Before Tax (reported) |
|
|
(18,990) |
(17,214) |
(28,590) |
(46,242) |
Tax |
2,692 |
364 |
4,300 |
0 |
||
Profit After Tax (norm) |
(15,841) |
(16,163) |
(24,290) |
(46,242) |
||
Profit After Tax (reported) |
(16,298) |
(16,850) |
(24,290) |
(46,242) |
||
Average Number of Shares Outstanding (m) |
15.6 |
18.2 |
18.3 |
18.3 |
||
EPS - normalised (c) |
|
|
(101.83) |
(89.03) |
(132.84) |
(252.90) |
EPS - reported (€) |
|
|
(1.05) |
(0.93) |
(1.33) |
(2.53) |
Dividend per share (€) |
0.0 |
0.0 |
0.0 |
0.0 |
||
Gross Margin (%) |
100.0 |
100.0 |
100.0 |
N/A |
||
EBITDA Margin (%) |
N/A |
N/A |
N/A |
N/A |
||
Operating Margin (before GW and except.) (%) |
N/A |
N/A |
N/A |
N/A |
||
BALANCE SHEET |
||||||
Fixed Assets |
|
|
57,141 |
57,670 |
55,758 |
54,419 |
Intangible Assets |
52,600 |
51,122 |
51,122 |
51,122 |
||
Tangible Assets |
947 |
926 |
926 |
926 |
||
Investments |
3,594 |
5,622 |
3,710 |
2,371 |
||
Current Assets |
|
|
30,442 |
34,351 |
25,399 |
43,943 |
Stocks |
0 |
0 |
0 |
0 |
||
Debtors |
1,074 |
772 |
811 |
851 |
||
Cash |
29,368 |
33,579 |
24,588 |
43,092 |
||
Other |
0 |
0 |
0 |
0 |
||
Current Liabilities |
|
|
(14,128) |
(16,762) |
(17,242) |
(17,747) |
Creditors |
(14,078) |
(15,151) |
(15,631) |
(16,136) |
||
Short term borrowings |
(50) |
(1,611) |
(1,611) |
(1,611) |
||
Long Term Liabilities |
|
|
(21,481) |
(37,224) |
(47,224) |
(107,224) |
Long term borrowings |
(16,552) |
(30,801) |
(40,801) |
(40,801) |
||
Illustrative debt |
0 |
0 |
0 |
(60,000) |
||
Other long term liabilities |
(4,929) |
(6,423) |
(6,423) |
(6,423) |
||
Net Assets |
|
|
51,974 |
38,035 |
16,690 |
(26,609) |
CASH FLOW |
||||||
Operating Cash Flow |
|
|
(16,807) |
(9,857) |
(21,957) |
(38,938) |
Net Interest |
273 |
634 |
(1,335) |
(2,557) |
||
Tax |
(2,742) |
(696) |
4,300 |
0 |
||
Capex |
(210) |
(472) |
0 |
0 |
||
Acquisitions/disposals |
0 |
0 |
0 |
0 |
||
Financing |
17,427 |
265 |
0 |
0 |
||
Other |
(1,258) |
(1,473) |
1 |
0 |
||
Dividends |
0 |
0 |
0 |
0 |
||
Net Cash Flow |
(3,317) |
(11,599) |
(18,991) |
(41,496) |
||
Opening net debt/(cash) |
|
|
(16,083) |
(12,766) |
(1,167) |
17,824 |
HP finance leases initiated |
0 |
0 |
0 |
0 |
||
Other |
0 |
0 |
0 |
0 |
||
Closing net debt/(cash) |
|
|
(12,766) |
(1,167) |
17,824 |
59,320 |
Source: Edison Investment Research, OSE company accounts
|
|
Research: TMT
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