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Currency in NOK
Last close As at 24/03/2023
NOK6.01
▲ −0.38 (−5.95%)
Market capitalisation
NOK532m
Research: Healthcare
BerGenBio (BGBIO) has announced an updated business strategy for its lead drug candidate, oral AXL inhibitor bemcentinib, which will focus on first-line (1L) non-squamous non-small cell lung cancers (NSCLCs) carrying the STK11 mutation and on hospitalised COVID-19 patients. The decision to move bemcentinib to the 1L setting could significantly broaden its target population among NSCLCs, given that c 20% of such cancers carry the STK11 mutation (~30,000 patients). Following encouraging data from the Phase II ACCORD2 study, BGBIO will continue to pursue bemcentinib in the treatment of hospitalised COVID-19 patients, with the EU-SolidAct platform trial set to begin recruitment shortly in a sub-protocol arm designed to enrol 500 patients across European sites. With this news we expect the company to deprioritise the current clinical development of bemcentinib in second-line (2L) NSCLC and 2L AML to focus on these new opportunities, which management sees as offering significant value potential. Our forecasts are under review.
BerGenBio |
Focusing in on 1L NSCLC and COVID-19 |
Strategy update |
Healthcare & biotech |
5 May 2022 |
Share price performance
Business description
Analysts
BerGenBio is a research client of Edison Investment Research Limited |
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BerGenBio (BGBIO) has announced an updated business strategy for its lead drug candidate, oral AXL inhibitor bemcentinib, which will focus on first-line (1L) non-squamous non-small cell lung cancers (NSCLCs) carrying the STK11 mutation and on hospitalised COVID-19 patients. The decision to move bemcentinib to the 1L setting could significantly broaden its target population among NSCLCs, given that c 20% of such cancers carry the STK11 mutation (~30,000 patients). Following encouraging data from the Phase II ACCORD2 study, BGBIO will continue to pursue bemcentinib in the treatment of hospitalised COVID-19 patients, with the EU-SolidAct platform trial set to begin recruitment shortly in a sub-protocol arm designed to enrol 500 patients across European sites. With this news we expect the company to deprioritise the current clinical development of bemcentinib in second-line (2L) NSCLC and 2L AML to focus on these new opportunities, which management sees as offering significant value potential. Our forecasts are under review.
Year end |
Revenue (NOKm) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
0.6 |
(257.0) |
(3.43) |
0.0 |
N/A |
N/A |
12/21 |
0.8 |
(309.4) |
(3.52) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
BerGenBio sees significant opportunities for lead asset bemcentinib in two indications where the drug has already demonstrated potential. Firstly, NSCLCs with SKT11 loss-of-function mutations are associated with impaired patient responses to PD-1/PD-L1 immunotherapies and poor outcomes. Preclinical data showed systemic inhibition of AXL by bemcentinib restored therapeutic response to immune checkpoint inhibitor treatment. The company’s Phase II BGB008 study in 2L NSCLC has already shown some efficacy in STK11 mutant patients when combined with pembrolizumab. Secondly, BerGenBio will pursue bemcentinib’s use in the treatment of hospitalised COVID-19 patients after recently completing the data analysis from its Phase II ACCORD2 study. In this, 90% (26 of 29) of patients experienced a clinical response by day 29 (median 7 days) when treated with bemcentinib + standard of care, compared to only 69% on standard-of-care alone. These results have also shown that bemcentinib provides broad inhibition across COVID-19 variants due to its unique mode of action.
As PD-1/PD-L1 immunotherapy is often the 1L standard of care in NSCLC and the 1L population is significantly larger, we see the progression of bemcentinib to 1L as a considerable opportunity for BerGenBio. The identification STK11m as a biomarker for bemcentinib treatment will de-risk further clinical trials and we note that STK11m is routinely screened for in commercial diagnostic panels such as FoundationOne CDx and Guardant 360 CDx.
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Research: Consumer
OPAP is a listed gaming operator with 100% pre-paid exclusive retail licences, which provide significant barriers to entry and strong recurring cash flow. In recent years OPAP has increased its online presence via a combination of organic growth and M&A, such that it is now the online market leader in Greece and Cyprus. Its Fast Forward strategy aims to grow OPAP’s customer interactions both online and offline while maintaining its leading position in corporate and social responsibility. This will be achieved through a combination of gaming innovation and brand investment, supported by improved technology and better customer relationship management. The key focus in FY21 was beginning the build out of the ‘infrastructure’, which will enable a step up in gaming innovation in the coming year, with management expecting incremental revenue and profits.
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