Severfield — Performing well with improving outlook

Severfield (LSE: SFR)

Last close As at 19/07/2024

GBP0.82

−1.00 (−1.20%)

Market capitalisation

GBP252m

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Research: Industrials

Severfield — Performing well with improving outlook

Severfield’s FY24 results demonstrate robust profit growth despite declining revenue, and management highlighted the positive outlook in its key markets of the UK, Continental Europe and India. The total order book has also remained at elevated levels despite the loss of the £50m Sunset Studios order, highlighting the underlying future earnings visibility. The FY25e P/E rating of 8.1x is comfortably below the long-term average of c 10x, implying material risk is discounted in the rating. The stock yields over 5% despite a recent bounce in the share price, an added attraction.

Andy Murphy

Written by

Andy Murphy

Director, Financials & Industrials

Industrials

Severfield

Performing well with improving outlook

FY24 preliminary results

Construction and materials

21 June 2024

Price

75.8p

Market cap

£234m

Net debt (£m) at 31 March 2024

9.4

Shares in issue

308.2m

Free float

100%

Code

SFR

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(3.3)

36.1

3.9

Rel (local)

(0.2)

29.6

(2.8)

52-week high/low

75p

50p

Business description

Severfield is a market-leading UK structural steelwork fabricator operating across a broad range of market sectors, now with a Dutch subsidiary. An Indian facility undertakes structural steelwork projects for the local market in a joint venture with India’s largest steel producer, JSW Steel.

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Analyst

Andy Murphy

+44 (0)20 3077 5700

Severfield is a research client of Edison Investment Research Limited

Severfield’s FY24 results demonstrate robust profit growth despite declining revenue, and management highlighted the positive outlook in its key markets of the UK, Continental Europe and India. The total order book has also remained at elevated levels despite the loss of the £50m Sunset Studios order, highlighting the underlying future earnings visibility. The FY25e P/E rating of 8.1x is comfortably below the long-term average of c 10x, implying material risk is discounted in the rating. The stock yields over 5% despite a recent bounce in the share price, an added attraction.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

03/23

491.8

32.5

8.4

3.4

9.0

4.5

03/24

463.5

36.5

8.9

3.7

8.5

4.9

03/25e

528.4

36.0

9.4

3.8

8.1

5.0

03/26e

539.0

39.8

10.6

4.2

7.2

5.5

Note: *PBT and EPS are on an underlying, diluted, company basis, excluding amortisation of acquired intangibles and exceptional items.

Operational deliverance overcomes weaker markets

Severfield reported underlying operating profit that was up 14% to £37.7m despite a 6% decline in revenue to £463.5m as operational delivery overcame the impact of weaker market conditions. The implied underlying operating margin increased 140bp to 8.1%, which is the highest margin since 2020. Underlying PBT increased 13% to £36.5m, with underlying EPS rising 5% to 8.9p, from which the company anticipates paying a total dividend for the year of 3.7p, up 9%. Net debt came in at £9.4m on a pre IFRS 16 basis, benefiting from a £10m customer advance and a £10m working capital improvement, as previously advised.

UK orderbook robust, India returns to growth

Over the last six years, Severfield’s UK and Europe order book has grown materially, from £230m in 2018 to £478m at 1 June, more recently benefiting from the buoyant European market and the inclusion of the VSCH backlog. It has also considerably diversified over that period, reducing risk. Furthermore, the Indian orderbook also grew, from £165m in November to £181m at 1 June as the market remains robust. The outlook for both regions remains positive and we expect the order book to remain at elevated levels for the foreseeable future.

Valuation: Material implied upside

The orderbooks look robust and the market outlook in the UK and Europe and in India appear encouraging, given the plans for infrastructure investment by numerous governments. The £10m share buyback highlights the balance sheet strength and management confidence as well as underpinning future EPS growth. That said, we have reduced our top of the range FY25 PBT estimate from £37.5m to £36.0m, which is now in line with consensus. Our FY26 profit estimate is largely unchanged. Severfield is trading on an FY25 P/E of 8.1x, which compares favourably with the long-term average of c 10x, and the stock yields in excess of 5% an added attraction.

Adjustments to EPS reflect share buyback

On the back of the FY24 results we have reduced our top of the range FY25 underlying PBT estimate to bring it in line with consensus and trimmed revenue estimates to reflect the FY24 revenue that was lower than expected. We have also updated our forecasts for the share buyback programme, which explains the increase in EPS in both FY25 and FY26. The better-than-expected net debt performance in FY24 implies that the FY25 net debt estimate post the share buyback is unchanged.

Exhibit 1: Revised estimates

2024

2025e

2026e

Actual

Old

New

% chg

Old

New

% chg

Revenue (£m)

463.5

550.5

528.4

-4.0%

561.5

539.0

-4.0%

Y-o-y % change

-5.7%

14.0%

14.0%

-

2.0%

2.0%

-

EBITDA – Edison basis (£m)

46.1

47.5

46.0

-3.1%

50.2

50.2

0.0%

Y-o-y % change

14.2%

5.6%

-0.2%

-

5.7%

9.0%

-

Underlying operating profit (£m)

39.6

40.5

39.0

-3.6%

43.2

43.2

0.0%

Y-o-y % change

13.4%

6.0%

-1.5%

-

6.7%

10.6%

-

PBT (underlying, pre exceptionals) (£m)

36.5

37.5

36.0

-3.9%

40.2

39.8

-1.0%

Y-o-y % change

12.5%

6.5%

-1.4%

-

7.2%

10.4%

-

EPS – underlying, diluted (p)

8.9

9.3

9.4

1.2%

9.9

10.6

7.0%

Y-o-y % change

5.5%

6.9%

6.3%

-

6.5%

12.6%

-

DPS (p)

3.7

3.8

3.8

0.0%

4.8

4.2

-12.5%

Y-o-y % change

8.8%

5.6%

2.7%

-

26.3%

10.5%

-

Net (debt)/cash (pre IFRS 16) (£m)

(9.4)

(22.0)

(22.3)

1.6%

(14.2)

(16.0)

12.8%

Y-o-y % change

N/A

-27.2%

138.5%

-

-35.5%

-28.3%

-

Source: Severfield accounts, Edison Investment Research

Material P/E valuation discount; balance sheet unstretched

On our FY25e EPS of 9.4p, Severfield is trading on a forward P/E of 8.1x, which is below the lows hit during the recent nadirs when it touched c 6x P/E and well below the long-term average of c 10x, which suggests that economic weakness is reflected in the valuation. While we accept this is a rational fear, we would argue that the policy response from the UK government has been supportive of investment in the built space and that Severfield’s order book, coupled with the long-term nature of many of its projects, means that the outlook for the company is much more positive than the current low P/E rating suggests.

Furthermore, Severfield’s balance sheet is arguably under-stretched, with an FY25e net debt/EBITDA ratio of c 0.5x, and given the cash-generative nature of the business, it could be close to debt-free by March 2027 post the Voortman acquisition, which is less than three years from now, despite paying c £10m pa to shareholders in dividends. The dividend is growing and yields over 5% at the current price.

Exhibit 2: Severfield’s forward P/E ratio, last eight years

Source: LSEG


Exhibit 3: Financial summary

£'m

2021

2022

2023

2024

2025e

2026e

Year end 31 March

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

363.3

403.6

491.8

463.5

528.4

539.0

EBITDA

 

 

29.6

33.4

40.4

46.1

46.0

50.2

Normalised operating profit

 

 

25.1

28.2

35.0

39.6

39.0

43.2

Operating profit (U/L, Company basis, inc JVs)

25.1

28.2

35.0

39.6

39.0

43.2

Amortisation of acquired intangibles

(2.8)

(5.2)

(3.3)

(5.4)

(3.3)

(5.4)

Exceptionals

(0.4)

(0.7)

(2.0)

0.8

0.0

0.0

Share-based payments

0.6

1.0

3.4

0.4

1.0

1.0

Other

0.4

0.4

0.6

(8.6)

0.4

0.4

Reported operating profit

22.9

23.8

33.6

26.8

37.1

39.2

Net Interest

(0.8)

(1.1)

(2.5)

(3.1)

(3.0)

(3.4)

Exceptionals

(0.4)

(0.7)

(0.6)

(0.3)

(0.4)

(0.4)

Profit Before Tax (norm)

 

 

24.3

27.1

32.5

36.5

36.0

39.8

Profit before tax (U/L, Company basis)

 

24.3

27.1

32.5

36.5

36.0

39.8

Profit Before Tax (reported)

 

 

21.1

21.0

27.1

23.0

30.8

34.6

Reported tax

(3.8)

(5.4)

(5.5)

(7.1)

(7.7)

(8.6)

Profit After Tax (norm)

20.5

21.7

26.9

29.4

28.3

31.1

Profit After Tax (reported)

17.3

15.6

21.6

15.9

23.1

25.9

Minority interests

0.0

0.0

0.0

0.0

0.0

0.0

Discontinued operations

0.0

0.0

0.0

0.0

0.0

0.0

Net income (normalised)

20.5

21.7

26.9

29.4

28.3

31.1

Net income (reported)

17.3

15.6

21.6

15.9

23.1

25.9

Basic average number of shares outstanding (m)

307

309

310

307

298

291

EPS - basic reported (p)

 

 

5.63

5.05

6.97

5.18

7.76

8.92

EPS - basic normalised (p)

 

 

6.68

7.03

8.70

9.58

9.51

10.71

EPS - diluted normalised (p)

 

 

6.68

7.00

8.61

9.49

9.41

10.60

EPS - (U/L, diluted, company basis) (p)

 

 

6.43

7.19

8.39

8.85

9.41

10.60

Dividend (p)

2.90

3.10

3.40

3.70

3.80

4.20

Revenue growth (%)

11.0

11.1

21.9

(-5.7)

14.0

2.0

EBITDA Margin (%)

8.1

8.3

8.2

10.0

8.7

9.3

Normalised Operating Margin

6.9

7.0

7.1

8.6

7.4

8.0

BALANCE SHEET

Fixed Assets

 

 

230.1

230.1

228.4

259.3

262.5

266.4

Intangible Assets

95.4

92.5

89.3

104.0

104.2

104.4

Tangible Assets

91.7

91.4

92.1

96.4

99.4

102.4

Investments & other

43.0

46.1

47.0

58.9

58.9

59.6

Current Assets

 

 

107.7

140.7

136.6

119.1

186.1

191.6

Stocks

10.2

18.0

13.2

11.6

14.3

16.2

Debtors

67.8

117.9

109.7

88.3

152.7

156.3

Cash & cash equivalents

25.0

0.0

11.3

13.8

13.8

13.8

Other

4.6

4.8

2.3

5.3

5.3

5.3

Current Liabilities

 

 

(85.4)

(123.3)

(109.0)

(91.5)

(148.9)

(151.1)

Creditors

(77.8)

(111.7)

(102.7)

(78.9)

(136.3)

(138.5)

Short term borrowings

(5.9)

(5.9)

(4.2)

(6.2)

(6.2)

(6.2)

Other

(1.7)

(5.7)

(2.2)

(6.3)

(6.3)

(6.3)

Long Term Liabilities

 

 

(61.4)

(43.5)

(38.3)

(54.4)

(65.3)

(57.0)

Long term borrowings

(14.9)

(9.0)

(4.8)

(13.8)

(26.8)

(20.4)

Other long term liabilities

(46.5)

(34.5)

(33.5)

(40.6)

(38.6)

(36.6)

Net Assets

 

 

190.9

204.0

217.7

232.6

234.4

249.9

Shareholders' equity

 

 

190.9

204.0

217.7

232.6

234.4

249.9

CASH FLOW

Op Cash Flow before WC and tax

34.0

40.5

45.6

54.3

52.5

56.7

Working capital

(0.2)

(34.5)

13.8

11.0

(9.6)

(3.3)

Exceptional & other

(3.5)

(5.4)

(4.8)

(8.7)

(4.8)

(4.8)

Tax

(4.6)

(3.8)

(3.5)

(7.3)

(9.7)

(10.6)

Other

(0.2)

(2.4)

(0.8)

(4.2)

(4.3)

(5.2)

Net operating cash flow

 

 

25.3

(5.7)

50.3

45.1

24.1

32.8

Capex

(6.5)

(5.0)

(6.2)

(10.9)

(8.7)

(8.7)

Acquisitions/disposals

(19.9)

(0.5)

(8.5)

(26.5)

(1.5)

(1.5)

Net interest

(0.7)

(1.1)

(2.5)

(3.2)

(3.0)

(3.4)

Equity financing

0.4

0.9

0.0

(3.1)

(10.0)

1.0

Dividends

(8.9)

(9.2)

(9.9)

(10.7)

(11.4)

(11.3)

Other

(1.8)

(2.2)

(2.1)

(2.6)

(2.5)

(2.5)

Net Cash Flow

(12.0)

(22.8)

21.1

(12.0)

(13.0)

6.3

Opening net debt/(cash)

 

 

(16.4)

(4.4)

18.4

(2.7)

9.4

22.3

Other non-cash movements

0.0

0.0

0.0

0.0

0.0

0.0

Closing net debt/(cash)

 

 

(4.4)

18.4

(2.7)

9.4

22.3

16.0

Source: Company data, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Severfield and prepared and issued by Edison, in consideration of a fee payable by Severfield. 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 2024 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.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by Severfield and prepared and issued by Edison, in consideration of a fee payable by Severfield. 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 2024 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.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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Research: Healthcare

Mendus — Recent clinical data highlight vididencel’s potential

Mendus recently presented positive data from two ongoing clinical studies, ADVANCE II and ALISON, at the EHA and ESMO conferences, respectively. While the Phase I ALISON trial, evaluating lead asset vididencel in ovarian cancer, met its primary endpoint of generating sufficient vaccine-induced responses (VIR), further analysis of ADVANCE II data (studying vididencel as a maintenance therapy in AML) confirmed the drug’s potential in generating a broader immune response through both T-cell and B-cell activation (vs selected T-cell action seen in antigen and neo-antigen-based approaches). This may be indicative of better clinical AML maintenance outcomes. We expect the next catalyst to be the Phase II CADENCE trial (patient enrolment to commence imminently), evaluating vididencel in combination with azacitidine (Onureg) in AML patients. Mendus is also planning a global registrational trial for vididencel, for which preparatory activities are expected to complete by H225.

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