Last close As at 05/08/2026
SEK6.71
▲ −0.16 (−2.33%)
Market capitalisation
SEK435m
Research: Healthcare
Mendus has reported gross proceeds of c SEK69.1m from the exercise of series TO3 warrants that were issued in connection with the July 2023 raise of SEK317m. Management anticipates that these proceeds will extend the cash runway to Q325 and will be applied to progress its clinical pipeline, mainly in preparation for a registrational trial for lead cancer vaccine vididencel, targeting acute myeloid leukaemia (AML) in the maintenance setting. Management expects the registrational study to commence in H225. In light of the challenging macroenvironment, we view this raise as a positive development for Mendus as it should also support operations as the company progresses through the AMLM22-CADENCE trial, which is anticipated to start patient recruitment this month.
Written by
Mendus |
Gross proceeds of c SEK69m to advance pipeline |
Fund-raising update |
Pharma and biotech |
4 April 2024 |
Share price performance
Business description
Analysts
Mendus is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||||||||||
Mendus has reported gross proceeds of c SEK69.1m from the exercise of series TO3 warrants that were issued in connection with the July 2023 raise of SEK317m. Management anticipates that these proceeds will extend the cash runway to Q325 and will be applied to progress its clinical pipeline, mainly in preparation for a registrational trial for lead cancer vaccine vididencel, targeting acute myeloid leukaemia (AML) in the maintenance setting. Management expects the registrational study to commence in H225. In light of the challenging macroenvironment, we view this raise as a positive development for Mendus as it should also support operations as the company progresses through the AMLM22-CADENCE trial, which is anticipated to start patient recruitment this month.
Year |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/22 |
3.4 |
(138.8) |
(0.70) |
0.0 |
N/A |
N/A |
12/23 |
29.6 |
(101.6) |
(0.22) |
0.0 |
N/A |
N/A |
12/24e |
0.0 |
(122.0) |
(0.14)** |
0.0 |
N/A |
N/A |
12/25e |
0.0 |
(125.9) |
(0.15)** |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **EPS estimates have not been adjusted for increased share count following TO3 warrant exercise announced in April 2024.
Mendus announced the receipt of gross proceeds of c SEK69.1m through the exercise of series TO3 warrants that were issued in relation to Mendus’s SEK317m capital raise, completed in July 2023. As part of this transaction, 188.7m warrants were issued, with each warrant entitling the holder to subscribe to one newly issued Mendus share at an exercise price of SEK0.48 in the vesting period of 15–29 March 2024. Altogether 144.0m warrants were exercised (c 76% of the number of outstanding warrants), for subscription of 144.0m shares, corresponding to gross proceeds of c SEK69.1m, prior to issue costs.
Following this conversion, Mendus’s total number of shares in issue will increase to 1,007m (from 863.1m). Although dilutive in nature, the proceeds are expected to strengthen Mendus’s financial position, providing operational headroom past upcoming milestones. In the near term, the company is gearing up for the launch the Phase II AMLM22-CADENCE trial in April 2024, with initial data expected from H225. In parallel, Mendus is preparing for a registrational programme for vididencel in AML, whereby management is aiming to commence a pivotal study in H225. For the company’s second asset, ilixadencel, management is preparing for a Phase II trial in soft tissue sarcomas, anticipated to commence in H224.
Based on our current cash burn estimates, we forecast that the additional proceeds secured through the TO3 warrant exercise should provide a cash runway into Q325, which is in line with management expectations.
|
|
Research: Financials
On 22 March, Helios Underwriting reported NAV for 31 December 2023 of 185p/share. This is broadly in line with our expectations and has not affected the forecasts in our update note published on 16 January. We maintain our valuation of 280p/share, which is at a 51% premium to the 31 December 2023 NAV. Since our last publication, Helios’s share price has risen by 22% (up 33% in the last month). This strong performance is well supported by the underlying fundamentals and outlook (as highlighted in our research) and was delivered despite the conclusion of Helios’s share buyback in January. Share overhang pressure appears to have subsided, although one of Helios’s key shareholders, Hudson Structured Capital Management (HSCM), may still be a natural seller of Helios shares due to internal issues.