ASIT biotech published its preliminary FY18 results in early April, including the cash position at the end of March 2019, and issued its FY18 report in May. The release of the balance of the FY18 financial statements resulted in no surprises, while the completion of the dosing phase of the Phase III study implies a safe and well-tolerated short-course allergy product.
Written by
ASIT biotech |
No surprises in FY18 annual report |
FY18 results release |
Pharma & biotech |
17 May 2019 |
Share price performance
Business description
Next events
Analyst
ASIT biotech is a research client of Edison Investment Research Limited |
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ASIT biotech published its preliminary FY18 results in early April, including the cash position at the end of March 2019, and issued its FY18 report in May. The release of the balance of the FY18 financial statements resulted in no surprises, while the completion of the dosing phase of the Phase III study implies a safe and well-tolerated short-course allergy product.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/17 |
0.0 |
(12.0) |
(0.94) |
0.0 |
N/A |
N/A |
12/18 |
0.0 |
(14.3) |
(0.86) |
0.0 |
N/A |
N/A |
12/19e |
0.0 |
(9.7) |
(0.48) |
0.0 |
N/A |
N/A |
12/20e |
0.0 |
(5.5) |
(0.19) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are both as reported.
FY18 results and positive safety implication
We have updated our financial model for the 2018 annual report, which resulted in very minor, non-material changes to our numbers and valuation. Much more importantly, together with the announcement of Frank Hazevoets as its new CFO, ASIT has announced that dosing completed earlier than expected in the Phase III ABT-gpASIT011 study in 651 grass pollen allergy patients. Investors will remember that gp-ASIT+ is a short-course subcutaneous product given before the pollen season starts. The fact that the treatment phase has completed in all patients without major incident implies the product is safe and well tolerated.
An eventful 2019 timeline
For most of the northern hemisphere, the grass pollen allergy season is about to start and, while the conduct of the ABT-gpASIT011 Phase III clinical study of gp-ASIT+ for grass pollen allergies is dominating ASIT’s operations, there will be plenty of other newsflow from ASIT in 2019. First, confirmation of the amount raised by the €9–12m convertible note offering is expected to be announced by the end of Q219. Second, the H119 financial results release in September is likely to include an update on the progress of the ABT-gpASIT011 study and the out-licensing of ASIT’s portfolio. Then, in Q419, ASIT expects to announce the results of the Phase III ABT-gpASIT011 study. Investors will remember that this second Phase III study incorporates nine improvements made to the design of the first Phase III, which met one and missed one of its co-primary endpoints.
Valuation: Only changed for cash and FX
We have updated our valuation for the €5.9m end-March 2019 cash balance, the first tranche of the expected minimum €9m convertible note offering, which we assume will be received in H119, and exchange rates to leave our valuation unchanged at €119m or €6.4 per share.
Exhibit 1: Financial summary
|
|
|
€'000s |
2017 |
2018 |
2019e |
2020e |
2021e |
Year end 31 December |
|
|
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
|
INCOME STATEMENT |
|
|
|
|
|
|
|
|
Revenue |
|
|
|
0 |
0 |
0 |
0 |
0 |
Cost of Sales |
|
|
|
0 |
0 |
0 |
0 |
0 |
Gross Profit |
|
|
|
0 |
0 |
0 |
0 |
0 |
General and Administrative Expenses |
|
(1,676) |
(2,468) |
(2,443) |
(2,419) |
(2,395) |
||
Research and Development Expenses |
|
(10,903) |
(10,856) |
(8,000) |
(3,480) |
(2,000) |
||
Other Operating Income |
|
|
604 |
557 |
585 |
614 |
645 |
|
Reported operating profit |
|
|
(11,975) |
(12,767) |
(9,858) |
(5,285) |
(3,750) |
|
Net Interest |
|
|
|
(9) |
(1,557) |
151 |
(220) |
(516) |
Profit before tax (as reported) |
|
|
(11,984) |
(14,324) |
(9,707) |
(5,505) |
(4,266) |
|
Reported tax |
|
|
|
(2) |
3 |
2 |
1,651 |
1,280 |
Profit after tax (reported) |
|
|
(11,986) |
(14,321) |
(9,705) |
(3,853) |
(2,986) |
|
Minority interests |
|
|
0 |
0 |
0 |
0 |
0 |
|
Net income (reported) |
|
|
(11,986) |
(14,321) |
(9,705) |
(3,853) |
(2,986) |
|
Basic average number of shares outstanding (m) |
|
12.8 |
16.7 |
20.2 |
20.2 |
20.2 |
||
EPS - basic, as reported (€) |
|
(0.94) |
(0.86) |
(0.48) |
(0.19) |
(0.15) |
||
BALANCE SHEET |
|
|
|
|
|
|
|
|
Non-Current Assets |
|
|
1,837 |
2,398 |
2,227 |
2,054 |
1,851 |
|
Property Plant and equipment, net |
|
691 |
810 |
764 |
716 |
638 |
||
Other intangible assets |
|
|
0 |
0 |
0 |
0 |
0 |
|
Other Non-Current Assets |
|
|
1,146 |
1,588 |
1,463 |
1,338 |
1,213 |
|
Current Assets |
|
|
2,448 |
9,156 |
14,720 |
18,333 |
14,723 |
|
Cash and cash equivalents |
|
|
2,126 |
8,458 |
13,458 |
16,507 |
12,333 |
|
Accounts receivable |
|
|
0 |
0 |
0 |
0 |
0 |
|
Inventories |
|
|
|
0 |
0 |
0 |
0 |
0 |
Other current assets |
|
|
322 |
698 |
1,262 |
1,826 |
2,390 |
|
Current Liabilities |
|
|
2,654 |
4,621 |
3,956 |
2,940 |
2,604 |
|
Accounts payable |
|
|
1,264 |
2,980 |
2,315 |
1,299 |
963 |
|
Short term debt and borrowings |
|
34 |
25 |
25 |
25 |
25 |
||
Other current liabilities |
|
|
1,356 |
1,616 |
1,616 |
1,616 |
1,616 |
|
Non-Current Liabilities |
|
|
432 |
465 |
9,465 |
16,465 |
16,465 |
|
Loans and borrowings |
|
|
432 |
465 |
9,465 |
16,465 |
16,465 |
|
Other non-current liabilities |
|
|
0 |
0 |
0 |
0 |
0 |
|
Equity |
|
|
|
1,199 |
6,468 |
3,526 |
981 |
(2,496) |
Common stock/Capital |
|
|
9,989 |
14,350 |
14,350 |
14,350 |
14,350 |
|
Additional paid-in capital/Share premium |
|
21,957 |
37,034 |
33,965 |
31,347 |
27,797 |
||
Other reserves and surplus |
|
|
(28,645) |
(42,889) |
(42,816) |
(42,743) |
(42,670) |
|
Other Equity |
|
|
|
(2,102) |
(2,027) |
(1,973) |
(1,973) |
(1,973) |
CASH FLOW |
|
|
|
|
|
|
|
|
Cash Flow from Operations |
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
(11,986) |
(14,321) |
(9,705) |
(3,853) |
(2,986) |
|
Depreciation and Amortization |
|
|
205 |
253 |
205 |
202 |
187 |
|
Interest income/expense |
|
|
9 |
1,557 |
(151) |
220 |
516 |
|
Stock-based compensation |
|
|
54 |
73 |
73 |
73 |
73 |
|
Non-cash adjustments |
|
|
(492) |
(564) |
(564) |
(564) |
(564) |
|
(Increase)/decrease in inventories |
|
0 |
0 |
0 |
0 |
0 |
||
(Increase)/decrease in trade receivables |
|
74 |
(376) |
0 |
0 |
0 |
||
(Increase)/decrease in other current assets |
|
(112) |
360 |
(1,009) |
(564) |
(564) |
||
Increase/(decrease) in trade payables |
|
(586) |
0 |
(39) |
(1,016) |
(336) |
||
Net cash used in Operating activities |
|
(12,834) |
(13,018) |
(11,190) |
(5,503) |
(3,675) |
||
Cash Flow from Investing |
|
|
|
|
|
|
|
|
Purchases of fixed assets |
|
|
(161) |
(371) |
(286) |
(154) |
(109) |
|
Other Investing Activities |
|
|
0 |
0 |
0 |
0 |
0 |
|
Net cash used in Investing activities |
|
(161) |
(371) |
(286) |
(154) |
(109) |
||
Cash Flow from Financing |
|
|
|
|
|
|
|
|
Change in Debt |
|
|
0 |
0 |
9,000 |
7,000 |
0 |
|
Change in Capital Stock |
|
|
0 |
19,591 |
7,200 |
1,800 |
0 |
|
Interest paid |
|
|
|
(10) |
(2) |
(24) |
(475) |
(825) |
Other Financing Activities |
|
|
1,743 |
134 |
300 |
379 |
434 |
|
Net cash used in Financing activities |
|
1,733 |
19,723 |
16,476 |
8,705 |
(391) |
||
Net Changes in Cash and Cash Equivalent |
|
(11,262) |
6,334 |
5,000 |
3,049 |
(4,174) |
||
Net cash/(debt) at the beginning of the period |
|
12,968 |
1,694 |
7,993 |
3,993 |
42 |
||
Net cash/(debt) at the end of the period |
|
1,694 |
7,993 |
3,993 |
42 |
(4,132) |
||
Source: ASIT biotech, Edison Investment Research
|
|
Research: TMT
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