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Currency in CHF
Last close As at 07/06/2023
CHF0.01
— 0.00 (−8.33%)
Market capitalisation
CHF15m
Research: Healthcare
Kinarus has announced that it has entered into a CHF1.5m strategic convertible loan agreement with ChaoDian (Hangzhou) Investment Management, an investment company based in China. The CHF1.5m subordinated loan has a three-year fixed term and does not bear any interest, and is convertible to Kinarus shares at a fixed conversion price of CHF0.01 per share. In addition to supporting Kinarus’s financial position, the company indicates the loan agreement forms the basis for future discussions on the development and commercialisation of KIN001 for the treatment of idiopathic pulmonary fibrosis (IPF) in China. While discussions are preliminary and no deal or licensing arrangement can be assured at this stage, we are encouraged that KIN001 is attracting interest from potential partners and view this development as supportive of the underlying premise behind the potential anti-fibrotic and anti-inflammatory effects of KIN001.
Kinarus Therapeutics |
Kinarus secures CHF1.5m financing |
Financing update |
Pharma and biotech |
15 May 2023 |
Share price performance
Business description
Analysts
Kinarus Therapeutics is a research client of Edison Investment Research Limited |
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Kinarus has announced that it has entered into a CHF1.5m strategic convertible loan agreement with ChaoDian (Hangzhou) Investment Management, an investment company based in China. The CHF1.5m subordinated loan has a three-year fixed term and does not bear any interest, and is convertible to Kinarus shares at a fixed conversion price of CHF0.01 per share. In addition to supporting Kinarus’s financial position, the company indicates the loan agreement forms the basis for future discussions on the development and commercialisation of KIN001 for the treatment of idiopathic pulmonary fibrosis (IPF) in China. While discussions are preliminary and no deal or licensing arrangement can be assured at this stage, we are encouraged that KIN001 is attracting interest from potential partners and view this development as supportive of the underlying premise behind the potential anti-fibrotic and anti-inflammatory effects of KIN001.
Year end |
Revenue |
PBT |
EPS |
DPS |
P/E |
Yield |
12/20 |
0.0 |
(1.5) |
(0.31) |
0.00 |
N/A |
N/A |
12/21 |
0.0 |
(4.9) |
(0.00) |
0.00 |
N/A |
N/A |
Note: 2020 accounts reflect statements of privately held Kinarus and 2021 statements represent pro-forma financials of Kinarus Therapeutics after the reverse merger transaction with Perfect Holding.
Kinarus in January summarised the preclinical data on lead candidate KIN001 (a proprietary combination of pamapimod and pioglitazone), demonstrating positive clinical activity in a mouse model of IPF both when used alone and in combination with existing approved IPF treatments, such as nintedanib or pirfenidone. This 21-day post-bleomycin injury mouse model data showed pamapimod and pioglitazone each reduced lung fibrosis, although combining them resulted in a greater reduction in fibrosis compared with either drug alone. The combination of KIN001 with pirfenidone showed further decreases in lung fibrosis, suggesting KIN001 could be used as an additive therapy to existing approved treatments. Provided clinical benefit can be shown in human studies, we continue to view this as a significant opportunity for emerging therapeutics such as KIN001 in the IPF market, in light of the high discontinuation rates associated with existing approved IPF treatments. As a reminder, branded pirfenidone (Esbriet) and nintedanib (OFEV) recorded c US$4bn in combined 2021 sales. We also note that KIN001 has already shown a favourable safety profile to date in human trials, as shown in the prior KINETIC study in COVID-19, where more than 130 patients received the drug for four weeks.
Kinarus has disclosed that its planned Phase II study in IPF will be a 52-week, double-blinded placebo-controlled trial assessing oral KIN001 on forced vital capacity, a common endpoint used in IPF studies, in 80 patients with IPF. The study will enrol patients already taking standard-of-care treatment (such as nintedanib or pirfenidone) as well as those taking neither drug. As is the case with Kinarus’s lead KIN001 indication (wet age-related macular degeneration), we believe the company is exploring additional financing and partnering options before starting Phase II studies. The company reported a CHF1.3m cash position at year-end 2022 and expects to reports audited 2022 financial statements in the coming weeks.
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Research: Healthcare
Mendus’s Q123 report provided an insight into the strategic next steps for its lead cancer vaccine, vididencel (DCOne), as the company pursues a clinical path in the acute myeloid leukaemia (AML) maintenance setting. Following the positive results from the Phase II ADVANCE II study, Mendus intends to initiate a follow-on Phase II study in H223, investigating the combination of vididencel with oral azacitidine (current standard of care, SoC) as an AML maintenance treatment regime. It had previously been reported that Mendus may look to explore vididencel as a maintenance treatment in patients post-hematopoietic stem cell transplantation (HSCT). However, with no maintenance therapy indicated in post-HSCT, to date, and the potential for synergistic efficacy enhancements with SoC oral azacitidine, we view Mendus’s prioritisation of the combination study as a sensible strategic decision. We have adjusted our forecasts, but our valuation of Mendus remains largely unchanged at SEK1.8bn or SEK9.19/share (previously SEK1.8bn or SEK9.07/share).
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