Last close As at 05/08/2026
EUR2.93
▲ −0.02 (−0.81%)
Market capitalisation
EUR248m
Research: Healthcare
Oryzon’s Q117 financial results were broadly in line with our expectations. The company’s partner, Roche is now solely responsible for ORY-1001’s development; it is conducting a Phase I trial in small cell lung cancer (SCLC) and can expand into other indications. Meanwhile, Oryzon is now focusing its internal R&D efforts on ORY-2001 for neurodegenerative diseases and ORY-3001 for as yet undisclosed non-cancer indications. Our valuation is slightly higher at €312m.
Written by
Oryzon Genomics |
ORY-2001 and ORY-3001 next in focus |
Q117 business update |
Pharma & biotech |
22 May 2017 |
Share price performance
Business description
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Analysts
Oryzon Genomics is a research client of Edison Investment Research Limited |
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Oryzon’s Q117 financial results were broadly in line with our expectations. The company’s partner, Roche is now solely responsible for ORY-1001’s development; it is conducting a Phase I trial in small cell lung cancer (SCLC) and can expand into other indications. Meanwhile, Oryzon is now focusing its internal R&D efforts on ORY-2001 for neurodegenerative diseases and ORY-3001 for as yet undisclosed non-cancer indications. Our valuation is slightly higher at €312m.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/15 |
7.2 |
(0.1) |
(0.01) |
0.0 |
N/A |
N/A |
12/16 |
5.0 |
(4.7) |
(0.17) |
0.0 |
N/A |
N/A |
12/17e |
4.2 |
(6.1) |
(0.20) |
0.0 |
N/A |
N/A |
12/18e |
4.5 |
(6.8) |
(0.20) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Financials: Q117 results broadly in line
With its Q117 business update Oryzon reported minimal revenues of €17k from Roche as a reimbursement for the R&D collaboration on LSD1 inhibition. In addition, the company recorded €1.2m income to account for the capitalisation of development costs (Oryzon follows Spanish GAAP), while the remaining €0.2m came from grants. Oryzon reported Q117 R&D costs of €1.5m and personnel expenses of €777k. The Q117 operating loss of €939k largely met our expectations. We make no changes to our forecasts and we have already included the recent €18m fundraise in our model. We continue to forecast a cash reach to H219/early 2020 (€27.9m end-Q117 cash plus €18.2m fundraise in April; €19.2m net cash).
ORY-2001 and ORY-3001 in focus next
Oryzon is now focusing its internal R&D efforts on ORY-2001 (a dual LSD1/MAO B inhibitor) and ORY-3001 (a selective LSD1 inhibitor), while ORY-1001 (the most advanced LSD1 inhibitor) is now in Roche’s hands following a positive Phase I/IIa trial in acute leukaemia in December 2016, according to the licensing deal terms in April 2014. ORY-2001 is being developed for neurodegenerative diseases and, having obtained a supportive safety profile in the Phase I study, Oryzon now aims to ramp up the clinical programme and initiate trials in multiple sclerosis, Alzheimer’s disease and Huntington’s disease. ORY-3001 is in advanced preclinical studies in as yet undisclosed non-cancer indications. The catalysts over the next 12 to 24 months include the progress in the SCLC trial run by Roche and potential expansion in other indications; initiation of Phase II trials in neurodegenerative disorders with ORY-2001, which could deliver proof-of-concept in 2019; and new preclinical candidates entering the clinic and delivering first human data (ORY-3001 is the most advanced).
Valuation: Slightly increased to €312m or €9.1/share
We value Oryzon at €312m or €9.1/share compared to our previous valuation of €308m or €9.0/share due to rolling our model forward, offset slightly by lower net cash. We make no changes to our valuation assumptions, as detailed in our recent outlook report.
Exhibit 1: Financial summary
EUR'000s |
2013 |
2014 |
2015 |
2016 |
2017e |
2018e |
||
December |
Local GAAP |
Local GAAP |
Local GAAP |
Local GAAP |
Local GAAP |
Local GAAP |
||
PROFIT & LOSS |
||||||||
Revenue |
|
|
2,360 |
15,536 |
7,185 |
5,009 |
4,156 |
4,515 |
Cost of Sales |
0 |
0 |
0 |
0 |
0 |
0 |
||
Gross Profit |
2,360 |
15,536 |
7,185 |
5,009 |
4,156 |
4,515 |
||
Research and development |
(873) |
(1,108) |
(3,191) |
(5,210) |
(5,274) |
(6,041) |
||
EBITDA |
|
|
(94) |
11,659 |
688 |
(3,721) |
(4,749) |
(5,537) |
Operating Profit (before amort. and except.) |
(370) |
11,398 |
448 |
(3,879) |
(4,845) |
(5,633) |
||
Intangible Amortisation |
(657) |
(657) |
(657) |
(695) |
(938) |
(1,049) |
||
Exceptionals |
(186) |
(4,617) |
(24) |
(4) |
0 |
0 |
||
Other |
0 |
0 |
0 |
0 |
0 |
0 |
||
Operating Profit |
(1,213) |
6,124 |
(233) |
(4,578) |
(5,783) |
(6,682) |
||
Exceptionals |
0 |
667 |
(169) |
(58) |
0 |
0 |
||
Net Interest |
(672) |
(52) |
(553) |
(844) |
(1,269) |
(1,214) |
||
Profit Before Tax (norm) |
|
|
(1,042) |
11,346 |
(105) |
(4,724) |
(6,115) |
(6,847) |
Profit Before Tax (reported) |
|
|
(1,885) |
6,739 |
(955) |
(5,480) |
(7,052) |
(7,896) |
Tax |
89 |
(88) |
(37) |
32 |
0 |
0 |
||
Profit After Tax (norm) |
(953) |
11,258 |
(142) |
(4,692) |
(6,115) |
(6,847) |
||
Profit After Tax (reported) |
(1,796) |
6,651 |
(992) |
(5,448) |
(7,052) |
(7,896) |
||
Average Number of Shares Outstanding (m) |
23.0 |
23.3 |
24.7 |
27.6 |
31.3 |
34.2 |
||
EPS - normalised (EUR) |
|
|
(0.04) |
0.48 |
(0.01) |
(0.17) |
(0.20) |
(0.20) |
EPS - (reported) (EUR) |
|
|
(0.08) |
0.29 |
(0.04) |
(0.20) |
(0.23) |
(0.23) |
Dividend per share (EUR) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Gross Margin (%) |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
||
EBITDA Margin (%) |
N/A |
75.0 |
9.6 |
N/A |
N/A |
N/A |
||
Operating Margin (before GW and except.) (%) |
N/A |
73.4 |
6.2 |
N/A |
N/A |
N/A |
||
BALANCE SHEET |
||||||||
Fixed Assets |
|
|
20,128 |
16,059 |
18,050 |
21,269 |
24,390 |
27,760 |
Intangible Assets |
15,825 |
12,928 |
15,188 |
18,810 |
22,028 |
25,494 |
||
Tangible Assets |
1,159 |
981 |
854 |
696 |
600 |
503 |
||
Investments |
3,145 |
2,150 |
2,008 |
1,763 |
1,763 |
1,763 |
||
Current Assets |
|
|
2,851 |
9,999 |
22,681 |
28,475 |
40,212 |
27,751 |
Stocks |
2 |
9 |
4 |
8 |
6 |
7 |
||
Debtors |
663 |
704 |
940 |
978 |
959 |
969 |
||
Cash |
2,033 |
3,633 |
19,467 |
22,028 |
33,786 |
26,776 |
||
Other* |
153 |
5,654 |
2,270 |
5,461 |
5,461 |
0 |
||
Current Liabilities |
|
|
(2,724) |
(3,969) |
(5,296) |
(7,597) |
(12,557) |
(13,277) |
Creditors |
(1,005) |
(1,299) |
(2,401) |
(2,119) |
(2,080) |
(2,100) |
||
Short term borrowings |
(1,719) |
(2,670) |
(2,895) |
(5,477) |
(10,477) |
(11,177) |
||
Long Term Liabilities |
|
|
(11,251) |
(8,196) |
(7,841) |
(19,419) |
(19,419) |
(18,719) |
Long term borrowings |
(9,117) |
(6,420) |
(6,177) |
(17,723) |
(17,723) |
(17,023) |
||
Other long term liabilities |
(2,134) |
(1,776) |
(1,664) |
(1,696) |
(1,696) |
(1,696) |
||
Net Assets |
|
|
9,004 |
13,893 |
27,594 |
22,729 |
32,625 |
23,515 |
CASH FLOW |
||||||||
Operating Cash Flow |
|
|
(113) |
12,178 |
1,076 |
(4,536) |
(6,036) |
(6,742) |
Net Interest |
(672) |
(52) |
(553) |
(471) |
(1,269) |
(1,214) |
||
Tax |
0 |
0 |
0 |
0 |
0 |
0 |
||
Capex |
0 |
0 |
0 |
(28) |
0 |
0 |
||
Acquisitions/disposals |
(677) |
798 |
0 |
0 |
0 |
0 |
||
Financing |
0 |
0 |
14,725 |
287 |
18,219 |
0 |
||
Other** |
(161) |
(9,579) |
605 |
(6,819) |
(4,156) |
946 |
||
Dividends |
0 |
0 |
0 |
0 |
0 |
0 |
||
Net Cash Flow |
(1,623) |
3,345 |
15,853 |
(11,567) |
6,758 |
(7,010) |
||
Opening net debt/(cash) |
|
|
7,180 |
8,803 |
5,458 |
(10,395) |
1,172 |
(5,585) |
HP finance leases initiated |
0 |
0 |
0 |
0 |
0 |
0 |
||
Other |
0 |
0 |
0 |
0 |
0 |
0 |
||
Closing net debt/(cash) |
|
|
8,803 |
5,458 |
(10,395) |
1,172 |
(5,585) |
1,425 |
Source: Edison Investment Research, Oryzon Genomics accounts. Note: Oryzon reports in Spanish GAAP. *Term deposits classed as other current assets. **Includes cash outflows related to development costs that were capitalised.
|
|
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