Currency in USD
Last close As at 26/05/2023
USD0.69
▲ −0.06 (−8.00%)
Market capitalisation
USD4m
Research: Healthcare
OpGen has announced the achievement of two interim milestones as part of its research project (PREPLEX) in collaboration with InfectoGnostics (a research campus for diagnosis of infectious diseases and pathogens) under Jena University, Germany. The initial joint R&D project, announced in September 2020, aims to develop AI-based assay for phenotypic carbapenemase resistance in Gram-negative bacteria. Completion of the interim milestones is related to the identification of novel markers for phenotypic carbapenemase resistance in Klebsiella pneumoniae and Pseudomonas aeruginosa (two pathogens on the World Health Organization’s list of concern), which was further validated by the OpGen’s ARESdb database. This encouraging development presents the opportunity for a potential expansion of the project. Given the company’s current focus on building AI models to predict antibiotic susceptibility, we believe this development provides further momentum to OpGen’s plans.
OpGen |
Interim milestone achieved for R&D collaboration |
Collaboration update |
Pharma and biotech |
4 April 2023 |
Share price performance Business description
Analysts
OpGen is a research client of Edison Investment Research Limited |
OpGen has announced the achievement of two interim milestones as part of its research project (PREPLEX) in collaboration with InfectoGnostics (a research campus for diagnosis of infectious diseases and pathogens) under Jena University, Germany. The initial joint R&D project, announced in September 2020, aims to develop AI-based assay for phenotypic carbapenemase resistance in Gram-negative bacteria. Completion of the interim milestones is related to the identification of novel markers for phenotypic carbapenemase resistance in Klebsiella pneumoniae and Pseudomonas aeruginosa (two pathogens on the World Health Organization’s list of concern), which was further validated by the OpGen’s ARESdb database. This encouraging development presents the opportunity for a potential expansion of the project. Given the company’s current focus on building AI models to predict antibiotic susceptibility, we believe this development provides further momentum to OpGen’s plans.
Year end |
Revenue |
EBITDA* |
PBT* |
EPS* |
P/E |
Net debt/ (cash) ($m) |
12/21 |
4.3 |
(20.4) |
(35.7) |
(23.4) |
N/A |
(14.4) |
12/22 |
2.6 |
(20.6) |
(25.3) |
(10.4) |
N/A |
4.4 |
12/23e |
4.7 |
(17.7) |
(21.0) |
(3.8) |
N/A |
17.6 |
12/24e |
7.9 |
(15.3) |
(19.6) |
(3.6) |
N/A |
37.5 |
Note: *Figures are normalized, excluding amortization of acquired intangibles, exceptional items and share-based payments. EPS adjusted for the 1:20 share consolidation in January 2023.
As a reminder, Curetis (OpGen’s Austria-based subsidiary) collaborated on an R&D project with InfectoGnostics Research Campus under Jena University (a public research university in Germany) in September 2020. The five-year project (until August 2025) aims to develop molecular diagnostics for resistance to carbapenems (antibiotics used for multidrug-resistant bacterial infections), along with resistance mechanisms in difficult-to-treat, Gram-negative pathogens like enterobacteria, pseudomonas and acinetobacter. We note that carbapenems are often last-resort antibiotics for treating Gram-negative bacteria that show resistance against cephalosporins, and this resistance usually arises from conditions like porin loss or efflux pump overexpression. As part of the project, Curetis was to provide support in identifying detection methods for carbapenem resistance based on porin loss and efflux pump overexpression. While the project started with total funding of more than €350k, provided by the German Federal Ministry of Education and Research to Curetis, OpGen currently estimates a total project volume of c $0.9m.
Management anticipates that milestone achievement might result in funding of another few hundred thousand dollars for its Curetis research team in the near to medium term, which could provide a further boost to its research capabilities. We believe the latest development reinforces management’s commitment to AI-based diagnostics capabilities and may open up further opportunities for such collaborations. With recent management guidance of a cash burn rate of $4.5–5m per quarter, we estimate that OpGen has a cash runway to Q223, with a fund-raising requirement of $15m expected in FY23.
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