Currency in SEK
Last close As at 07/06/2023
SEK8.42
▲ 0.08 (0.96%)
Market capitalisation
SEK436m
Research: Healthcare
IRLAB has commented on statements in Ipsen’s 2022 Universal Registration Document regarding the clinical development of mesdopetam, a D3 antagonist under clinical development for the symptomatic treatment of Parkinson’s disease (PD). Published on 6 April 2023, the document stated that the development and commercialisation rights for mesdopetam had been transferred back to IRLAB, but this is not correct. IRLAB has now communicated that, as of May 2023, discussions with Ipsen on the future development path for mesdopetam are ongoing, and management believes that the drug will soon be ready for Phase III clinical trials.
IRLAB Therapeutics |
Mesdopetam remains in Ipsen’s portfolio |
4 May 2023 |
Share price performance Business description
Analysts
IRLAB Therapeutics is a research client of Edison Investment Research Limited |
IRLAB has commented on statements in Ipsen’s 2022 Universal Registration Document regarding the clinical development of mesdopetam, a D3 antagonist under clinical development for the symptomatic treatment of Parkinson’s disease (PD). Published on 6 April 2023, the document stated that the development and commercialisation rights for mesdopetam had been transferred back to IRLAB, but this is not correct. IRLAB has now communicated that, as of May 2023, discussions with Ipsen on the future development path for mesdopetam are ongoing, and management believes that the drug will soon be ready for Phase III clinical trials.
Operational update |
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/21 |
207.9 |
91.1 |
1.76 |
0.0 |
N/A |
N/A |
12/22 |
61.3 |
(113.1) |
(2.18) |
0.0 |
N/A |
N/A |
12/23e |
0.2 |
(160.0) |
(3.08) |
0.0 |
N/A |
N/A |
12/24e |
0.2 |
(168.4) |
(3.25) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
As a reminder, in January 2023, IRLAB shared top-line data from the Phase IIb trial assessing mesdopetam for the treatment of levodopa-induced dyskinesias (PD-LIDs). While the study did not meet the primary endpoint (change in daily hours of ‘ON time’ without troublesome dyskinesia compared to placebo) with statistical significance, it did meet the secondary efficacy endpoint (demonstrating significant anti-dyskinetic effects measured by the Unified Dyskinesia Rating Scale, UDysRS). We believe the fact that the trial met the secondary endpoint is encouraging, given the FDA approved Gocovri in PD-LIDs on the basis of UDysRS changes, demonstrating the clinical relevance of the scale.
The global rights to mesdopetam were licensed to Ipsen in July 2021 for an upfront payment of $28m, up to $335m on achievement of certain development, regulatory events and commercial sales milestones, and tiered low double-digit royalties on worldwide net sales. IRLAB was to fund the development of the drug until the top-line results of the Phase IIb trial, after which Ipsen would assume responsibility for all further clinical development and global commercialisation efforts. Although future plans for mesdopetam have not yet been disclosed, we note that Ipsen begun preparatory Phase III activities in September 2022.
Ipsen’s 2022 Universal Registration Document stated that IRLAB had been informed that Ipsen had decided not to exercise its right to proceed with further clinical development of mesdopetam, and that the development and commercialisation rights had been transferred back to IRLAB. However, IRLAB has commented that this is not accurate, and that it has not received termination of the licence agreement, nor any transfer of the mesdopetam project. In May 2023, IRLAB and Ipsen have been engaged in discussions to mutually agree on the path forward to give mesdopetam the best possible prospects of reaching registration. We believe this is promising for the clinical development of the drug and note IRLAB’s assessment that mesdopetam will soon be ready for Phase III studies.
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Research: Metals & Mining
Despite the lower Q323 production and higher unit costs, Sylvania Platinum remains highly cash generative with US$144.2m cash at end March 2023 versus US$123.9m at end Q223. Lower rhodium prices resulted in significantly lower EBITDA than Q223. We have lowered our rhodium and palladium price forecasts for the next two years because of expected lower demand in China and some de-stocking from OEMs. Our new valuation is 173.7p/share, versus the previous valuation of 186.9p/share.
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