Last close As at 05/08/2026
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▲ 0.21 (2.25%)
Market capitalisation
USD520m
Research: Healthcare
Immix reported Q223 results, which were largely as expected. Operational highlights included rolling positive newsflow for CAR-T therapy NXC-201 and interim results for IMX-110 in colorectal cancer patients. With the ramp-up in clinical activity, mainly the NEXICART-1 trial, as well as the two ongoing Phase Ib/IIa trials for IMX-110, management reported R&D expenses of $2.2m, notably higher than $0.6m in the previous year. At end June 2023, cash was $12.7m, supported by a $5m (gross) at-the-market fund-raise in H123. Based on our estimated cash burn, we continue to forecast an operating cash runway into Q224, consistent with management guidance. As we update our FY23 and FY24 expense estimates based on the H123 run rate, roll forward our model and update the net cash figure, our valuation adjusts to $81.1m versus $83.3m previously.
Written by
Immix Biopharma |
Progressing as expected on all fronts |
Q223 results |
Pharma and biotech |
18 August 2023 |
Share price performance
Business description
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Analysts
Immix Biopharma is a research client of Edison Investment Research Limited |
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Immix reported Q223 results, which were largely as expected. Operational highlights included rolling positive newsflow for CAR-T therapy NXC-201 and interim results for IMX-110 in colorectal cancer patients. With the ramp-up in clinical activity, mainly the NEXICART-1 trial, as well as the two ongoing Phase Ib/IIa trials for IMX-110, management reported R&D expenses of $2.2m, notably higher than $0.6m in the previous year. At end June 2023, cash was $12.7m, supported by a $5m (gross) at-the-market fund-raise in H123. Based on our estimated cash burn, we continue to forecast an operating cash runway into Q224, consistent with management guidance. As we update our FY23 and FY24 expense estimates based on the H123 run rate, roll forward our model and update the net cash figure, our valuation adjusts to $81.1m versus $83.3m previously.
Year |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/21 |
0.0 |
(1.31) |
(0.36) |
0.0 |
N/A |
N/A |
12/22 |
0.0 |
(7.70) |
(0.55) |
0.0 |
N/A |
N/A |
12/23e |
0.0 |
(12.26) |
(0.84) |
0.0 |
N/A |
N/A |
12/24e |
0.0 |
(15.83) |
(0.97) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalized, excluding amortization of acquired intangibles, exceptional items and share-based payments.
Multiple encouraging trial readouts for key assets
Immix’s strategic priority remains NXC-201 for multiple myeloma (MM) and amyloid light chain amyloidosis (ALA). In the ongoing NEXICART-1 trial by majority-owned subsidiary Nexcella, positive data were reported from 58 patients, with an overall response rate of 92% for MM and 100% for ALA patients. After a pre-IND meeting, management expects its next step to be the submission of an IND application to the FDA and believes that NEXICART-1 could serve as a registrational study once 100 patients are enrolled, provided the results continue to be supportive. Updated data are expected in September. Immix recently published encouraging interim results from its Phase Ib/IIa IMMINENT-01 trial assessing IMX-110 in combination with tislelizumab for the treatment of solid tumors. IMX-110 is also being investigated in a Phase Ib/IIa trial for the treatment of soft tissue sarcoma, with top-line readouts for both trials involving IMX-110 anticipated by end FY24.
Cash runway into Q224
Immix reported net cash of $12.7m at end Q223. Based on our operating cash burn expectations for H223 and FY24, we anticipate a runway into Q224. We estimate that Immix will need to raise c $20m to fund operations into FY25, at which point we assume it will secure a full global licensing deal for IMX-110. The company entered into an at-the-market (ATM) agreement in July to sell shares up to $4.2m. If fully exercised, this might extend its runway further.
Valuation: $81.1m or $5.0 per share
As we roll forward our model, revise our operating expense estimates for FY23 and FY24 and update net cash, our total valuation for Immix adjusts to $81.1m or $5.0/share (from $83.3m or $5.5/share). The per-share valuation incorporates an increased number of shares outstanding (16.3m versus 15.0m previously).
Financials and valuation
During Q223, cash outflow from operating activities was higher at $3.5m compared to $0.5m in Q222, as increased clinical activities and higher general and administrative (G&A) expenses translated into an increased operating loss of $3.7m in Q223 (versus $1.6m in Q222). R&D expenses increased to $2.2m in Q223 from $0.6m in Q222, mainly due to clinical costs associated with its ongoing clinical trials (ie the NEXICART-1 clinical trial for CAR-T therapy NXC-201 and Phase Ib/IIa clinical trials for IMX-110). As a reminder, Immix is investigating IMX-110 in a Phase Ib/IIa study for soft tissue sarcoma and a Phase Ib/IIa trial in advanced solid tumors. The NEXICART-1 trial is a Phase Ib/IIa open-label study to investigate the safety and efficacy of NXC-201, a B-cell maturation antigen targeting CAR-T therapy, in adults with relapsed or refractory MM and ALA. The clinical development of NXC-201 is being independently financed by Immix’s subsidiary, Nexcella (of which Immix owns 94%). G&A expenses were also up at $1.5m in Q223 (from $1.0m in Q222), led by increased payroll costs and stock-based compensation.
Incorporating the higher run rate of operating expenses in H123, we have adjusted our estimates for R&D and G&A expenses for FY23 and FY24. Our revised forecasts for R&D expenses increase to $6.9m in FY23 (from $6.1m previously) and to $9.8m (from $9.5m) in FY24. Based on higher than anticipated G&A expenses in H123, our FY23 and FY24 forecasts increase to $5.7m and $6.4m, respectively, versus $4.8m and $4.9m previously. These changes in operating expenses translate into higher operating losses of $12.7m and $16.2m (versus $10.9m and $14.4m previously) in FY23 and FY24. Our revised net loss estimates are $12.7m in FY23 and $16.2m in FY24, versus $10.9m and $14.4m, previously.
As we incorporate the above-mentioned changes, roll forward our model and update the net cash figure to $12.7m (versus $11.5m at end March 2023), we adjust our valuation for Immix to $81.1m from $83.3m previously. We adjust our per-share valuation to $5.0 per share versus $5.5m previously, reflecting the increased number of shares outstanding (16.3m versus 15.0m previously).
Immix ended the quarter with a cash balance of $12.7m, which was primarily supported by the $4.8m fund-raise (net proceeds) through an ATM offering in H123 (see our previous note for full details of the $5m ATM offering). Based on our cash burn projections for FY23 and FY24, we continue to estimate an operating cash runway into Q224, which is in line with management expectations. We maintain that Immix will need to raise $20m in FY24 before we expect it to secure a global licensing deal in FY25, which is accounted for as illustrative debt in our model. Alternatively, if the funding is instead realized through an equity issue (assumed at the current trading price of $1.63/share), Immix would have to issue 10.5m shares, resulting in our per-share valuation decreasing to $3.8 from $5.0 currently (the number of shares outstanding would increase from 16.3m to 26.8m). In an effort to extend the cash runway further, Immix entered into a July ATM sales agreement to sell common shares worth up to $4.2m deemed to be an ATM offering. As of 10 August 2023, the company reported that it had sold 25k shares under the agreement, providing cash proceeds of $51.3k.
Exhibit 1: Immix Biopharma rNPV
Product |
Indication |
Launch |
Peak |
Peak sales |
Value |
Probability |
rNPV |
rNPV/share (US$) |
IMX-110 |
STS |
2028 |
2033 |
455.1 |
191.5 |
15.0% |
29.7 |
1.8 |
IMX-110 |
Solid tumors |
2029 |
2035 |
474.5 |
185.2 |
10.0% |
12.6 |
0.8 |
NXC-201 |
Multiple myeloma and AL amyloidosis |
2030 |
2035 |
246.0* |
134.6** |
17.5% |
18.9 |
1.2 |
NXC-201 |
AL amyloidosis |
2030 |
2035 |
143.7 |
76.5** |
17.5% |
7.2 |
0.4 |
Net cash on 30 June 2023 |
|
|
|
12.7 |
100% |
12.7 |
0.78 |
|
Valuation |
|
|
|
600.5 |
|
81.1 |
5.0 |
Source: Edison Investment Research. Note: *Assumed licensing milestone payment value and overall deal value higher for NXC-201 than IMX-110. We have modelled a deal value of $210m for IMX-110 versus $450m for NXC-201. **Weighted by Immix’s 94% ownership of the asset in Nexcella.
Exhibit 2: Financial summary
Accounts: IFRS, year-end: 31 December, US$’000s |
|
2021 |
2022 |
2023e |
2024e |
PROFIT & LOSS |
|
|
|
|
|
Total revenues |
|
0 |
0 |
0 |
0 |
Cost of sales |
|
0 |
0 |
0 |
0 |
Gross profit |
|
0 |
0 |
0 |
0 |
Total operating expenses |
|
(1,352) |
(8,219) |
(12,660) |
(16,225) |
Research and development expenses |
|
(127) |
(4,196) |
(6,933) |
(9,783) |
SG&A |
|
(1,225) |
(4,023) |
(5,728) |
(6,442) |
EBITDA (normalized) |
|
(1,350) |
(8,217) |
(12,659) |
(16,223) |
Operating income (reported) |
|
(1,352) |
(8,219) |
(12,660) |
(16,225) |
Finance income/(expense) |
|
(180) |
(0) |
0 |
0 |
Exceptionals and adjustments |
|
(22,846) |
0 |
0 |
0 |
Profit before tax (reported) |
|
(24,378) |
(8,219) |
(12,660) |
(16,225) |
Profit before tax (normalized) |
|
(1,313) |
(7,695) |
(12,260) |
(15,825) |
Income tax expense (includes exceptionals) |
|
(6) |
(10) |
(14) |
(18) |
Net income (reported) |
|
(24,384) |
(8,230) |
(12,675) |
(16,244) |
Net income (normalized) |
|
(1,319) |
(7,706) |
(12,275) |
(15,844) |
Basic average number of shares, m |
|
3.7 |
13.9 |
14.6 |
16.3 |
Basic EPS (US$) |
|
(6.64) |
(0.59) |
(0.87) |
(1.00) |
Adjusted EPS (US$) |
|
(0.36) |
(0.55) |
(0.84) |
(0.97) |
Dividend per share (US$) |
|
0.00 |
0.00 |
0.00 |
0.00 |
BALANCE SHEET |
|
|
|
|
|
Property, plant and equipment |
|
6 |
4 |
4 |
4 |
Other non-current assets |
|
0 |
7 |
183 |
183 |
Total non-current assets |
|
6 |
10 |
186 |
187 |
Cash and equivalents |
|
17,644 |
13,437 |
7,105 |
11,261 |
Current tax receivables |
|
26 |
256 |
297 |
297 |
Trade and other receivables |
|
0 |
0 |
2 |
3 |
Other current assets |
|
516 |
1,205 |
1,205 |
1,205 |
Total current assets |
|
18,186 |
14,898 |
8,609 |
12,766 |
Non-current loans and borrowings |
|
0 |
0 |
0 |
0 |
Non-current lease liabilities |
|
0 |
0 |
0 |
0 |
Other non-current liabilities |
|
0 |
475 |
0 |
0 |
Illustrative debt |
|
0 |
0 |
0 |
20,000 |
Total non-current liabilities |
|
0 |
475 |
0 |
20,000 |
Accounts payable |
|
143 |
1,273 |
2,396 |
2,396 |
Current lease obligations |
|
0 |
0 |
2 |
3 |
Other current liabilities |
|
59 |
0 |
0 |
0 |
Total current liabilities |
|
202 |
1,273 |
2,398 |
2,399 |
Equity attributable to company |
|
17,990 |
13,160 |
6,398 |
(9,446) |
CASH FLOW STATEMENT |
|
|
|
|
|
Net Income |
|
(24,384) |
(8,230) |
(12,675) |
(16,244) |
Depreciation and amortization |
|
2 |
2 |
2 |
2 |
Share based payments |
|
219 |
524 |
400 |
400 |
Other adjustments |
|
22,964 |
100 |
0 |
0 |
Movements in working capital |
|
(391) |
195 |
1,081 |
0 |
Cash from operations (CFO) |
|
(1,589) |
(7,408) |
(11,192) |
(15,842) |
Capex |
|
(1) |
0 |
(2) |
(2) |
Acquisitions & disposals net |
|
0 |
0 |
0 |
0 |
Other investing activities |
|
0 |
0 |
0 |
0 |
Cash used in investing activities (CFIA) |
|
(1) |
0 |
(2) |
(2) |
Capital changes |
|
18,849 |
2,914 |
4,863 |
0 |
Debt Changes |
|
0 |
0 |
0 |
20,000 |
Other financing activities |
|
0 |
318 |
(1) |
20,000 |
Cash from financing activities (CFF) |
|
18,849 |
3,232 |
4,862 |
40,000 |
Cash and equivalents at beginning of period |
|
391 |
17,644 |
13,437 |
7,105 |
Increase/(decrease) in cash and equivalents |
|
17,259 |
(4,176) |
(6,332) |
24,156 |
Effect of FX on cash and equivalents |
|
(5) |
(32) |
0 |
0 |
Cash and equivalents at end of period |
|
17,644 |
13,437 |
7,105 |
31,261 |
Net (debt)/cash |
|
17,644 |
13,437 |
7,105 |
(8,739) |
Source: Company reports, Edison Investment Research
|
|
Research: Healthcare
Ahead of its full FY23 results, Sareum Holdings has received the first instalment (£2m) of its newly announced funding facility (£5m in total). Additionally, management shared an operational update on its lead asset, SDC-1801. The Phase Ia study is progressing as planned and the second part of the study (multiple ascending doses) is expected to start in Q323, subject to approval from the safety review committee. Sareum ended FY23 with a cash balance of £1m, further supported by the announced £5m (gross proceeds) equity prepayment facility, which will be split in five deposits at defined time intervals. Management believes that the prepayment facility, along with expected tax credits of £1.6m, should fund its operations into Q424, thus covering the Phase Ia/b study of SDC-1801.