Currency in SEK
Last close As at 25/03/2023
SEK1.28
▲ −0.01 (−0.78%)
Market capitalisation
SEK258m
Mendus has drawn down its first loan of SEK10m as part of the company’s binding commitment with its largest shareholder group, Van Herk Investments. The raise will help capitalise the company past key inflection points which include trial readouts from its ADVANCE II study in acute myeloid leukaemia and ALISON study in ovarian cancer, expected in Q422 and October 2022, respectively. Both studies are investigating the use of Mendus’ lead cancer vaccine candidate, DCP-001. The SEK10m two-year loan comes with a 6% cumulative interest and is intended to be repaid in cash at the end of the loan period. Additionally, Mendus has finalised its financing agreement with Negma Group, which has committed to subscribe up to SEK200m in convertible bonds. With a H122 cash position of SEK84.9m and H122 burn rate of SEK70.7m, we estimate a cash runway into Q123; however, assuming Mendus fully exercises the committed financing, we believe this could extend our runway estimates to H224. We value Mendus at SEK1.87bn or SEK9.35 per share.
Mendus |
Funding to see through key inflection points |
Operational update |
Pharma and biotech |
27 October 2022 |
Share price performance Business description
Analysts
Mendus is a research client of Edison Investment Research Limited |
Mendus has drawn down its first loan of SEK10m as part of the company’s binding commitment with its largest shareholder group, Van Herk Investments. The raise will help capitalise the company past key inflection points which include trial readouts from its ADVANCE II study in acute myeloid leukaemia and ALISON study in ovarian cancer, expected in Q422 and October 2022, respectively. Both studies are investigating the use of Mendus’ lead cancer vaccine candidate, DCP-001. The SEK10m two-year loan comes with a 6% cumulative interest and is intended to be repaid in cash at the end of the loan period. Additionally, Mendus has finalised its financing agreement with Negma Group, which has committed to subscribe up to SEK200m in convertible bonds. With a H122 cash position of SEK84.9m and H122 burn rate of SEK70.7m, we estimate a cash runway into Q123; however, assuming Mendus fully exercises the committed financing, we believe this could extend our runway estimates to H224. We value Mendus at SEK1.87bn or SEK9.35 per share.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
0.0 |
(89.2) |
(1.17) |
0.0 |
N/A |
N/A |
12/21 |
0.0 |
(133.4) |
(0.73) |
0.0 |
N/A |
N/A |
12/22e |
1.9 |
(126.0) |
(0.63) |
0.0 |
N/A |
N/A |
12/23e |
0.0 |
(128.9) |
(0.65) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Mendus is fast approaching a busy period of readout activity from both its Phase II ADVANCE and Phase I ALISON studies. Under the terms of its financing agreement with Van Herk Investments, Mendus is entitled to receive up to a maximum amount of SEK50m, of which the first SEK10m is now secured, at market-standard conditions with the commitment letter being valid until June 30 2023.
The convertible bond financing agreement with Negma Group consists of tranches of up to SEK10m over a period of 30 months up to Mendus’ request. The conversion price will be 92% of second-lowest closing daily volume-weighted average price of the 10 consecutive trading days preceding the issuance of conversion request by Negma. The convertible bonds carry a zero coupon and will be issued at a subscription price corresponding to their par value. The current commitment whereby the number of shares issued will not exceed 20% of the current number of registered shares still applies.
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Research: Healthcare
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