Pixium Vision — Moving ahead as expected

Pixium Vision (PAR: PIX)

Last close As at 26/02/2024

EUR0.15

−0.04 (−21.05%)

Market capitalisation

EUR1m

More on this equity

Research: Healthcare

Pixium Vision — Moving ahead as expected

Pixium’s FY21 results were mostly in line with our forecasts, as the company continues to advance its wireless Prima bionic vision system (BVS) through the PRIMAvera pivotal study. The company finished 2021 with €14.5m gross cash, which we believe should fund operations into 2023. After rolling forward our estimates and adjusting forex and net cash, we obtain an equity valuation of €135.1m or €2.31 per basic share.

Written by

Pooya Hemami

Analyst - Healthcare

Healthcare

Pixium Vision

Moving ahead as expected

Q421 update

Healthcare equipment & services

7 March 2022

Price

€0.57

Market cap

€34m

$1.10/€

Estimated net cash (€m) at 31 December 2021 excluding leases

5.1

Shares in issue

58.7m

Free float

60%

Code

ALPIX

Primary exchange

Euronext Growth Paris

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(18.5)

(34.3)

(39.0)

Rel (local)

(6.8)

(26.4)

(40.1)

52-week high/low

€2.09

€0.57

Business description

Pixium Vision develops bionic vision systems for patients with severe vision loss. Its lead product, Prima, is a wireless subretinal implant system designed for dry-AMD. The company started implantations as part of a European pivotal study in early 2021.

Next events

Completion of recruitment for PRIMAvera study

H222

Analyst

Pooya Hemami, CFA

+1 646 653 7026

Pixium Vision is a research client of Edison Investment Research Limited

Pixium’s FY21 results were mostly in line with our forecasts, as the company continues to advance its wireless Prima bionic vision system (BVS) through the PRIMAvera pivotal study. The company finished 2021 with €14.5m gross cash, which we believe should fund operations into 2023. After rolling forward our estimates and adjusting forex and net cash, we obtain an equity valuation of €135.1m or €2.31 per basic share.

Year end

Revenue (€m)

PBT*
(€m)

EPS*
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/20

2.1

(8.7)

(0.26)

0.0

N/A

N/A

12/21

2.7

(11.1)

(0.23)

0.0

N/A

N/A

12/22e

1.6

(11.5)

(0.19)

0.0

N/A

N/A

12/23e

0.8

(16.2)

(0.27)

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

European feasibility study highlighted in Nature

A recent article in Nature highlighted 18–24 month interim data from the five-patient, 36-month European feasibility study (PRIMA-FS). The authors concluded that the PRIMA-FS study confirmed the safety and stability of the Prima BVS over the study period and noted that all patients with subretinal implantation and electronic magnification could demonstrate visual acuity (VA) exceeding 20/100. Altogether, while assisted by magnification, these measures are markedly superior to the baseline pre-implantation VA levels. The authors also reiterated that the Prima-implanted patients were able to simultaneously use their prosthetic vision and their residual natural vision from both the study eye and the other eye.

FY21 in line, 2022 to focus on PRIMAvera study

Pixium’s FY21 results were generally in line with our forecasts, as the operating loss of €10.3m exceeded our €9.7m projection, but net operating cash ouflows (€8.8m) were better than our estimate (€11.7m outflow). We expect the company to prioritise continued advancement of the PRIMAvera registration-enabling pivotal study, designed to assess the Prima BVS in 38 patients with geographic atrophy (GA) associated with dry age-related macular degeneration (dry-AMD). Assuming no significant new COVID-19 restrictions affect the European study sites, we are confident that Pixium can meet its guidance of enrolment completion by year-end FY22. We maintain our estimate that primary 12-month data will be released in late 2023 or early 2024, leading to potential European approval in H125.

Valuation: Rolling forward our forecasts

After rolling forward our estimates and making minor adjustments to our model (including adjusting our forex assumptions to $1.10/€, from $1.13/€ previously), we obtain a pipeline rNPV of €130.0m (vs €115.1m previously). After adding €5.1m in Q421e net cash (€14.5m gross cash minus €9.4m estimated Q421 debt), we obtain an equity value of €135.1m or €2.31 per basic share (versus €2.11 previously). Assuming full exercise of the July 2021 warrants, our fully diluted equity valuation would be €2.24 per share (versus €2.06 previously).

Clinical results highlighted in Nature article

A recent article (Palanker et al) published in Nature highlights interim data from the five-patient, 36-month European feasibility study (PRIMA-FS), which began in late 2017.1 As a reminder, the study is assessing the Prima BVS in patients with GA associated with advanced dry-AMD who had no remaining central visual activity at the time of enrolment in the study eye. In January 2019, Pixium announced that Prima’s study endpoints had been successfully met at interim six-month follow-up after implantation. The data showed that the Prima device can interface with retinal cells to restore some visual perception in an area where vision had been lost due to prolonged degenerative disease. Pixium then transitioned study participants to second-generation Prima system external components to work alongside the same (current-generation) 378-electrode implant chip, which would better allow patients to combine both prosthetic and natural residual (ie peripheral) vision, as the initial-generation glasses were opaque. The second-generation components include an enhanced and transparent version of the augmented reality (AR) glasses (Prima 2 glasses), and a new pocket computer employing improved algorithms, designed to incorporate more advanced image processing, magnification and artificial intelligence (AI) features to enhance the functional visual experience of patients.

In Q120, the company reported 18-month data on four EU patients implanted in PRIMA-FS (one of the five patients had passed away due to health reasons unrelated to Prima), showing continued safety and tolerability, and that use of the second-generation components led to some measurable improvements in VA, in part due to the improved magnification capabilities (up to 8x magnification/ zoom).

The Palanker et al article summarised study data at 18–24 months post-implantation with the Prima 2 components. We note that the surgical technique (estimated duration between one and two hours) is designed to position the Prima chip implant into the subretinal space (between the ganglion cell nerve fibre layer and the retinal pigment epithelium layer). Palanker et al noted that in one of the five subjects, the implant shifted to the choroidal space because of the patient’s accidental movement during surgery and this patient had no discernible post-implantation VA. Hence, as with any retinal surgery, proper patient behaviour and compliance is needed. Altogether, there were three evaluable subjects, and VA was measured using the Landolt C optotype (the type of figures or symbols used to measure VA).

Exhibit 1: Landolt C optotype

Source: Wikimedia commons; attribution to Visuoloog/CC BY-SA

Effective device-assisted prosthetic VA with active magnification (at 18–24 months post-implantation), was measured at values between log MAR 0.5 (approximately 20/60, or c 33% of normal VA expected in healthy subjects) and logMAR 0.69 (approximately 20/100, or c 20% of normal VA). Each 0.1 increment on the logMAR scale represents the next lower VA line of the VA chart (ie the higher the logMAR value, the lower the effective VA). Specifically, the three subjects had device-assisted VA of 20/98, 20/71, and 20/63, respectively, which compared to their pre-implantation VA levels in the study eye of 20/800, 20/500, and 20/500, respectively. Altogether, these measures are markedly superior to the baseline results, even given that they were assisted to a degree by the device’s magnification features. We reiterate that legal blindness is generally defined as 20/200 (10% of normal VA) and we assume that the Prima device will be targeting dry-AMD patients with significant GA having a baseline VA level no better than 20/400 (5% of normal VA).

Palanker at al also reiterated that the Prima-implanted patients were able to simultaneously use their prosthetic vision and their residual natural vision from both the study eye and the other eye. The authors conclude the PRIMA-FS study confirmed the safety and stability of the Prima BVS over 18–24 months follow-up and noted that all patients with subretinal implantation and electronic magnification could demonstrate VA exceeding 20/100. Longer-term (up to 24–30 months) data were provided in Q121, which showed that VA improvements from the Prima chip were maintained at 24–30 months follow-up post-implantation, suggesting continued safety and stability of the implant over this period.

Interestingly, Palanker et al concluded by discussing potential advancements in photovoltaic pixel design, to potentially enable an implant with five times higher pixel density, which we discussed in our Outlook note, and which the authors estimate could potentially enable electronic zoom capability approaching 20/20 (100% of normal VA). As a reminder, Pixium’s strategy remains to bring the current 378-pixel Prima chip iteration to market then work on a follow-on iteration carrying much higher pixel densities. In September 2021, Pixium announced that it had expanded the collaboration with its Stanford research partners to develop the next generation of Prima implants, which are intended to use a similar design to the current iteration, while allowing for a significant increase in the number of pixels (electrodes). We reiterate that while higher pixel density could potentially extend the market reach of Prima technology to patients with less severe forms of atrophic AMD, our models and forecasts only consider the implications and market opportunities for the current (initial-generation) 378-electrode Prima device.

FY21 financial update

Pixium recently announced its FY21 results, which were generally in line with our forecasts. Revenue (predominantly research tax credits and grants) of €2.66m mildly exceeded our €2.60m forecast, but with G&A costs (€5.1m excluding depreciation) and R&D costs (€7.3m) above our expectations of €4.8m and €7.1m, respectively, the overall operating loss of €10.3m exceeded our €9.7m projection. Cash management was better than anticipated, as net operating cash flow (including net interest) was a €8.8m loss, compared to our forecast of an €11.7m loss. Capex was relatively minor (€0.05m), in line with our forecast and with prior years. The company did not provide an audited balance sheet but reported a gross cash balance of €14.5m. Assuming no substantial changes in the debt structure since our prior note, and given that financing cash inflows (€12.8m) were comparable to our €13.1m estimate, we estimate Q421 gross debt of €9.4m, hence we estimate Q421 net cash of €5.1m (excluding leases).

Maintaining Prima timing and launch forecasts

We continue to expect that the company’s upcoming activities will be largely focused on continuing to advance the PRIMAvera registration-enabling pivotal study. PRIMAvera is designed to assess the Prima BVS in 38 patients with severe geographic atrophy due to age-related macular degeneration (GA-AMD). The study began in Q420, and the first implantation occurred in France in March 2021. Implantations in H121 were slower than the company expected due to COVID-19 and related restrictions on elective procedures, as well as the associated delays in gaining additional competent authority approvals and clinical site inclusions. Fortunately, the pace of recruitment appears to have picked up in recent months as new sites have opened. Study sites now include seven locations in France and six in Germany and the company announced in December 2021 the first implantation at Moorfields Eye hospital in London, UK, and it expects to add additional sites in Spain, the Netherlands and Italy in H122.

Assuming no significant new COVID-19 restrictions affect the European study sites, we are confident that Pixium can meet its guidance of enrolment completion by year-end FY22. We maintain our estimate that primary 12-month data will be released in late 2023 or early 2024, leading to CE Mark submission in H124 and European approval in H125. We continue to anticipate that a separate study will be needed for US approval and continue to assume that the US launch will occur in H226. We believe that Pixium remains in discussions with US regulatory authorities to explore the possibility of conducting this US study in parallel with the European pivotal trial which, if accepted by the FDA, could lead to a US launch earlier than our baseline estimate of H226.Our overall sales forecasts in local currency terms are unchanged and as highlighted in our prior note.

Financials and valuation

We have made very minor adjustments to our FY22 estimates, as we have slightly increased our G&A and R&D expectations by €0.2m each following the FY21 results, to €4.2m and €7.4m, respectively. We now estimate net operating cash burn rates of €8.2m and €18.5m for FY22 and FY23, respectively, up from our prior forecasts of €8.0m and €18.4m.

We believe Pixium’s gross cash on hand (€14.5m) should be sufficient for it to maintain its operations and fund its Prima development plants into 2023. We continue to expect that the company will raise €44m (modelled as illustrative debt) by year-end 2025, to complete the PRIMAvera study and all EU-related regulatory and preparatory commercial activities to bring Prima to commercial launch. As part of this funding assumption, we assume the company will raise €12.5m by year-end 2022.

Our valuation of Pixium Vision uses an rNPV approach, employing a 12.5% cost of capital, based on the Prima opportunity in GA-AMD. We continue to apply a 25% probability of success estimate for Prima in Europe and a 20% probability in the US market.

Exhibit 2: Pixium Vision rNPV assumptions

Product contribution

Indication

Status

NPV
(€m)

Probability of success

rNPV
(€m)

rNPV/
share (€)

Launch year

Peak sales (€m) in 2030

Prima (net of R&D and SG&A costs) in EU market

Age-related macular degeneration with geographic atrophy

Pivotal study

562.1

25%

131.0

2.24

H125

474

Prima (net of R&D and SG&A costs) in US market

Age-related macular degeneration with geographic atrophy

Human feasibility trials

420.1

20%

81.7

1.40

H226

490

Net capex, NWC & taxes (global)

(363.4)

(82.7)

(1.41)

Total

618.8

130.0

2.22

Net cash (Q421e)

5.1

5.1

0.09

Total equity value

623.9

135.1

2.31

Basic shares outstanding (000s)

58,490

Source: Edison Investment Research

After rolling forward our estimates and making minor adjustments to our model (including adjusting our forex assumptions to $1.10/€ from $1.13/€ previously), we obtain a pipeline rNPV of €130.0m (vs €115.1m previously). After adding €5.1m in Q421e net cash, we obtain an equity value of €135.1m, or €2.31 per basic share (vs €2.11 previously). Assuming full exercise of the July 2021 warrants, our fully diluted equity valuation would be €2.24 per share (versus €2.06 previously).

Below we provide a sensitivity analysis demonstrating how our basic per-share valuation would be affected by using different Prima pricing and probability of success assumptions (for Europe).

Exhibit 3: Pixium Vision per-share equity value (€) analysis based on European net Prima pricing versus probability of success in Europe

70,000

75,000

80,000

85,000

90,000

15.0%

1.15

1.25

1.35

1.45

1.55

20.0%

1.57

1.70

1.83

1.96

2.09

25.0%

1.98

2.15

2.31

2.47

2.64

30.0%

2.40

2.60

2.79

2.99

3.19

35.0%

2.82

3.05

3.28

3.51

3.74

Source: Edison Investment Research. Note: Left-hand column represents European probability of success and top row represents European net Prima pricing at launch (€).

Exhibit 4: Financial summary

€’000s

2018

2019

2020

2021

2022e

2023e

31-December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

1,598

1,782

2,092

2,655

1,600

800

Cost of Sales

(41)

0

0

0

0

0

General & Administrative

(2,019)

(3,572)

(4,008)

(5,084)

(4,200)

(5,210)

Research & Development

(5,297)

(6,563)

(5,704)

(7,282)

(7,400)

(9,400)

EBITDA

 

 

(5,758)

(8,352)

(7,620)

(9,712)

(10,000)

(13,810)

Depreciation

(677)

(448)

(366)

(549)

(429)

(325)

Amortization

0

0

0

0

0

0

Operating Profit (before exceptionals)

 

(6,435)

(8,801)

(7,986)

(10,261)

(10,429)

(14,135)

Exceptionals

(5,859)

(69)

(448)

0

0

0

Other

0

0

0

0

0

0

Operating Profit

(12,294)

(8,870)

(8,434)

(10,261)

(10,429)

(14,135)

Net Interest

(1,277)

(1,006)

(699)

(790)

(1,043)

(2,052)

Profit Before Tax (norm)

 

 

(7,712)

(9,806)

(8,685)

(11,051)

(11,472)

(16,187)

Profit Before Tax (FRS 3)

 

 

(13,571)

(9,876)

(9,133)

(11,051)

(11,472)

(16,187)

Tax

0

0

0

0

0

0

Profit After Tax and minority interests (norm)

(7,712)

(9,806)

(8,685)

(11,051)

(11,472)

(16,187)

Profit After Tax and minority interests (FRS 3)

(13,571)

(9,876)

(9,133)

(11,051)

(11,472)

(16,187)

Average Number of Shares Outstanding (m)

18.5

22.3

34.0

48.2

59.0

59.7

EPS - normalised (€)

 

 

(0.42)

(0.44)

(0.26)

(0.23)

(0.19)

(0.27)

EPS - normalised and fully diluted (€)

 

 

(0.42)

(0.44)

(0.26)

(0.23)

(0.19)

(0.27)

EPS - (IFRS) (€)

 

 

(0.73)

(0.44)

(0.27)

(0.23)

(0.19)

(0.27)

Dividend per share (€)

0.0

0.0

0.0

0.0

0.0

0.0

BALANCE SHEET

Fixed Assets

 

 

3,666

4,507

3,411

2,783

2,398

2,093

Intangible Assets

2,623

2,361

1,727

1,534

1,534

1,534

Tangible Assets

1,042

2,145

1,684

1,250

864

559

Current Assets

 

 

17,756

9,107

12,721

17,842

22,052

15,366

Short-term investments

0

0

0

0

0

0

Cash

15,629

6,792

10,566

14,505

18,721

12,123

Other

2,126

2,316

2,155

3,337

3,332

3,244

Current Liabilities

 

 

(2,044)

(2,880)

(3,795)

(4,946)

(7,246)

(4,061)

Creditors

(2,044)

(2,880)

(3,260)

(2,553)

(4,853)

(1,668)

Short term borrowings

0

0

(536)

(2,394)

(2,394)

(2,394)

Long Term Liabilities

 

 

(8,023)

(7,033)

(7,851)

(8,055)

(20,555)

(32,429)

Long term borrowings

(7,870)

(5,787)

(6,695)

(7,036)

(19,536)

(31,410)

Other long-term liabilities

(153)

(1,246)

(1,157)

(1,019)

(1,019)

(1,019)

Net Assets

 

 

11,355

3,700

4,485

7,624

(3,351)

(19,031)

CASH FLOW

Operating Cash Flow

 

 

(6,174)

(7,282)

(6,207)

(8,039)

(7,197)

(16,401)

Net Interest

(1,277)

(1,006)

(699)

(790)

(1,043)

(2,052)

Tax

0

0

0

0

0

0

Net Operating Cash Flow

(7,450)

(8,288)

(6,906)

(8,829)

(8,240)

(18,452)

Capex

(31)

(34)

(82)

(48)

(44)

(20)

Acquisitions/disposals

0

0

0

0

0

0

Financing

14,068

2,034

9,055

13,170

0

0

Net Cash Flow

6,587

(6,288)

2,067

4,293

(8,284)

(18,472)

Opening net debt/(cash)

 

 

(1,401)

(7,760)

(1,004)

(3,336)

(5,075)

3,209

HP finance leases initiated

0

0

0

0

0

0

Other

(228)

(468)

264

(2,553)

0

0

Closing net debt/(cash)

 

 

(7,760)

(1,004)

(3,336)

(5,075)

3,209

21,681

Lease debt

N/A

1,346

1,258

1,141

1,141

1,141

Closing net debt/(cash) inclusive of IFRS 16 lease debt

(7,760)

342

(2,078)

(3,935)

4,349

22,822

Source: Company reports, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Pixium Vision and prepared and issued by Edison, in consideration of a fee payable by Pixium Vision. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Pixium Vision and prepared and issued by Edison, in consideration of a fee payable by Pixium Vision. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on Pixium Vision

View All

Latest from the Healthcare sector

View All Healthcare content

Research: Financials

Manx Financial Group — Resilient, profitable and ready for growth

Manx Financial Group (MFG) offers a combination of relatively fast growth potential and low valuation. Operating income doubled between 2016 and 2020 with only a 1% decline in the pandemic year. MFG’s key assets are Conister Bank, a specialist SME and retail lender, Edgewater Associates, the largest Manx independent financial advisory business, and Manx FX, a currency broker and provider of international payment processing facilities. The ROE ranged between 12% and 17% in FY14–19 and 9% in the challenging 2020/H121. The bank is well capitalised and funded. MFG restarted paying dividends after 16 years in 2021. The shares do not have a very demanding rating at 0.49x 2020 P/BV and 5.7x depressed 2020 earnings, presenting strong share price upside potential as earnings recover.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free