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Last close As at 02/02/2023
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Market capitalisation
USD37m
Research: Healthcare
Immix Biopharma’s 9M22 financial results were consistent with our full year estimates. The company reported operating losses of US$4.4m, up from US$0.8m in 9M21, due to the increased costs associated with the clinical development activities for the company’s lead asset, IMX-110. With a net cash position of US$16.9m at end Q322, and based on our projected cash burn rates, we estimate Immix’s operations are funded into Q424, past rolling clinical readouts from its Phase IIa study in soft tissue sarcoma (STS) and its Phase Ib in advanced solid tumours in FY23. Our valuation of Immix Biopharma is largely unchanged at US$55.4m or US$4.0 per share.
Immix Biopharma |
IMX-110 clinical expansion on the horizon |
Q322 update |
Pharma and biotech |
14 November 2022 |
Share price performance
Business description
Next events
Analysts
Immix Biopharma is a research client of Edison Investment Research Limited |
Immix Biopharma’s 9M22 financial results were consistent with our full year estimates. The company reported operating losses of US$4.4m, up from US$0.8m in 9M21, due to the increased costs associated with the clinical development activities for the company’s lead asset, IMX-110. With a net cash position of US$16.9m at end Q322, and based on our projected cash burn rates, we estimate Immix’s operations are funded into Q424, past rolling clinical readouts from its Phase IIa study in soft tissue sarcoma (STS) and its Phase Ib in advanced solid tumours in FY23. Our valuation of Immix Biopharma is largely unchanged at US$55.4m or US$4.0 per share.
Year end |
Revenue (US$m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
0.0 |
(0.56) |
(0.51) |
0.0 |
N/A |
N/A |
12/21 |
0.0 |
(1.31) |
(0.36) |
0.0 |
N/A |
N/A |
12/22e |
0.0 |
(6.09) |
(0.44) |
0.0 |
N/A |
N/A |
12/23e |
0.0 |
(8.78) |
(0.63) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalized, excluding amortization of acquired intangibles, exceptional items and share-based payments.
On track for trial starts by end FY22
Q422 is expected to be a period of significant activity for Immix with the initiation of its key phase IIa expansion study investigating IMX-110 in first-line STS as well as a Phase Ib basket combination trial in advanced solid tumours. The Phase Ib study will assess IMX-110 in combination with Beigene/Novartis’ immune checkpoint inhibitor (ICI), tislelizumab. Management expects to provide rolling data readouts from both studies throughout FY23, with top-line data from each expected by end FY24. We see the timely initiation of both studies as the next major milestone for the company. For more details on IMX-110’s clinical development strategy please see our recent initiation.
Costs expected to rise in FY23
With the expected ramp in clinical activities, and the simultaneous running of two trials, we anticipate that total operating expenses will increase significantly from FY22e (US$6.2m) into FY23e (US$8.8m), largely driven by increased R&D expenditure. We estimate R&D expenses for FY22 to be US$3.0m, rising to US$5.5m in FY23. We base our R&D costs on estimated expenses incurred by the company in previous clinical trials and management’s communicated budget of c US$11m for the Phase Ib and Phase IIa IMX-110 studies.
Valuation: US$55.4m or US$4.0 per share
Our valuation of Immix Biopharma remains largely unchanged at US$55.4m or US$4.0 per share (US$56.7m or US$4.1 per share previously). The slight value change comes as a result of the company’s lower net cash position at end-Q322 of US$16.9m. Considering Q322 results, our financial estimates remain broadly unchanged and our underlying long-term assumptions are unchanged.
Approval for paediatric patient enrolment
In addition to the financial update Immix has also received approval from the Institutional Review Board (IRB) to recruit paediatric patients suffering from rhabdomyosarcoma, a rare soft tissue cancer in children into its upcoming Phase IIa expansion trial. Immix had previously been awarded rare paediatric disease designation (RPDD) by the US FDA for IMX-110 in the treatment of rhabdomyosarcoma. An RPDD qualifies Immix Biopharma to receive fast track review and a priority review voucher (PRV), upon marketing approval of IMX-110. A PRV would entitle Immix to obtain a six-month priority review for any subsequent new drug application for IMX-110 into any new indication. Notably, PRVs are tradable assets that regularly fetch upwards of US$100m in value. A prerequisite to FDA approval of a PRV is the enrolment of paediatric patients in a clinical trial, so we see the IRB’s decision as a positive step for IMX-110’s clinical development strategy.
Exhibit 1: Financial summary
Accounts: IFRS, Yr end: December 31, USD:000s |
|
2019 |
2020 |
2021 |
2022e |
2023e |
PROFIT & LOSS |
|
|
|
|
|
|
Total revenues |
|
0 |
0 |
0 |
0 |
0 |
Cost of sales |
|
0 |
0 |
0 |
0 |
0 |
Gross profit |
|
0 |
0 |
0 |
0 |
0 |
Total operating expenses |
|
(842) |
(454) |
(1,352) |
(6,206) |
(8,770) |
Research and development expenses |
|
(583) |
(248) |
(127) |
(3,020) |
(5,520) |
SG&A |
|
(259) |
(206) |
(1,225) |
(3,186) |
(3,250) |
EBITDA (normalized) |
|
(841) |
(452) |
(1,350) |
(6,205) |
(8,769) |
Operating income (reported) |
|
(842) |
(454) |
(1,352) |
(6,206) |
(8,770) |
Finance income/(expense) |
|
(110) |
(102) |
(180) |
(0) |
0 |
Exceptionals and adjustments |
|
0 |
(574) |
(22,846) |
0 |
0 |
Profit before tax (reported) |
|
(952) |
(1,130) |
(24,378) |
(6,207) |
(8,770) |
Profit before tax (normalised) |
|
(952) |
(555) |
(1,313) |
(5,913) |
(8,770) |
Income tax expense (includes exceptionals) |
|
(21) |
(18) |
(6) |
(7) |
(10) |
Net income (reported) |
|
(973) |
(1,148) |
(24,384) |
(6,214) |
(8,780) |
Net income (normalised) |
|
(973) |
(572) |
(1,319) |
(5,920) |
(8,780) |
Basic average number of shares, m |
|
1.1 |
1.1 |
3.7 |
13.9 |
13.9 |
Basic EPS (US$) |
|
(0.86) |
(1.02) |
(6.64) |
(0.45) |
(0.63) |
Adjusted EPS (US$) |
|
(0.86) |
(0.51) |
(0.36) |
(0.43) |
(0.63) |
Dividend per share (US$) |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
BALANCE SHEET |
|
|
|
|
|
|
Property, plant and equipment |
|
10 |
7 |
6 |
4 |
3 |
Total non-current assets |
|
10 |
7 |
6 |
4 |
3 |
Cash and equivalents |
|
734 |
391 |
17,644 |
15,096 |
6,317 |
Current tax receivables |
|
176 |
127 |
26 |
182 |
182 |
Trade and other receivables |
|
0 |
0 |
0 |
0 |
0 |
Other current assets |
|
24 |
14 |
516 |
292 |
292 |
Total current assets |
|
933 |
532 |
18,186 |
15,571 |
6,792 |
Non-current loans and borrowings |
|
0 |
0 |
0 |
0 |
0 |
Non-current lease liabilities |
|
0 |
0 |
0 |
0 |
0 |
Other non-current liabilities |
|
0 |
0 |
0 |
0 |
0 |
Total non-current liabilities |
|
0 |
0 |
0 |
0 |
0 |
Accounts payable |
|
248 |
252 |
143 |
646 |
646 |
Illustrative debt |
|
0 |
4,050 |
0 |
0 |
0 |
Current lease obligations |
|
0 |
0 |
0 |
0 |
0 |
Other current liabilities |
|
4,342 |
968 |
59 |
0 |
0 |
Total current liabilities |
|
4,589 |
5,270 |
202 |
646 |
646 |
Equity attributable to company |
|
(3,646) |
(4,731) |
17,990 |
14,928 |
6,148 |
|
|
0 |
0 |
0 |
0 |
0 |
CASH FLOW STATEMENT |
|
|
|
|
|
|
Net Income |
|
(973) |
(1,148) |
(24,384) |
(6,214) |
(8,780) |
Depreciation and amortisation |
|
1 |
2 |
2 |
2 |
1 |
Share based payments |
|
0 |
0 |
219 |
294 |
0 |
Other adjustments |
|
0 |
575 |
22,964 |
0 |
0 |
Movements in working capital |
|
182 |
166 |
(391) |
562 |
0 |
Cash from operations (CFO) |
|
(790) |
(405) |
(1,589) |
(5,356) |
(8,779) |
Capex |
|
(7) |
0 |
(1) |
0 |
0 |
Acquisitions & disposals net |
|
0 |
0 |
0 |
0 |
0 |
Other investing activities |
|
0 |
0 |
0 |
0 |
0 |
Cash used in investing activities (CFIA) |
|
(7) |
0 |
(1) |
0 |
0 |
Capital changes |
|
1,050 |
0 |
18,849 |
2,914 |
0 |
Debt Changes |
|
0 |
0 |
0 |
0 |
0 |
Other financing activities |
|
0 |
0 |
0 |
(106) |
0 |
Cash from financing activities (CFF) |
|
1,050 |
0 |
18,849 |
2,808 |
0 |
Cash and equivalents at beginning of period |
|
462 |
734 |
391 |
17,644 |
15,096 |
Increase/(decrease) in cash and equivalents |
|
253 |
(405) |
17,259 |
(2,548) |
(8,779) |
Effect of FX on cash and equivalents |
|
19 |
62 |
(5) |
0 |
0 |
Cash and equivalents at end of period |
|
734 |
391 |
17,644 |
15,096 |
6,317 |
Net (debt)/cash |
|
734 |
(3,659) |
17,644 |
15,096 |
6,317 |
Source: Immix Biopharma company accounts, Edison Investment Research
|
|
Research: Healthcare
OpGen’s Q322 revenues of $0.4m missed consensus estimates (following a strong Q222 performance), with management attributing the softness to longer than expected sales cycles for ARES and lower Unyvero A50 sales in international markets. Encouragingly though, the quarter was marked by business advancements – signing a second Acuitas AMR Gene Panel commercial contract, completing the UTI test panel patient enrollment in the US, launching ARES sequencing services in the US and announcing collaborations with FIND and BioVersys – which all present monetization opportunities to potentially support revenue uplift starting in FY23. The Q322 miss, however, has triggered a guidance downgrade, with FY22 revenue expected to be $2.5–3.0m (previously 25% y-o-y growth; c $4.5m in revenue). In light of these developments, we withdraw our estimates and valuation while we await further clarity on the installed base, revenue mix and margins.
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