Currency in SEK
Last close As at 09/06/2023
SEK8.90
▲ 0.48 (5.70%)
Market capitalisation
SEK461m
Research: Healthcare
IRLAB Therapeutics announced that it has completed patient recruitment for its ongoing Phase IIb study investigating mesdopetam in the treatment of patients with Parkinson’s disease levodopa-induced dyskinesias (PD-LIDs). We see the successful patient enrolment for the trial as a positive indicator for the company being on track to deliver top-line readouts from the study around the end of 2022, representing the most important near-term catalyst. Mesdopetam is being developed in collaboration with Ipsen, which will assume responsibility for the drug’s clinical development programme through registration and global commercialisation, should positive Phase IIb data be reported. We maintain our estimates and valuation of IRLAB at SEK6.40bn or SEK123.7 per share.
IRLAB Therapeutics |
Phase IIb recruitment complete |
Clinical study update |
Pharma and biotech |
13 September 2022 |
Share price performance Business description
Analysts
IRLAB Therapeutics is a research client of Edison Investment Research Limited |
IRLAB Therapeutics announced that it has completed patient recruitment for its ongoing Phase IIb study investigating mesdopetam in the treatment of patients with Parkinson’s disease levodopa-induced dyskinesias (PD-LIDs). We see the successful patient enrolment for the trial as a positive indicator for the company being on track to deliver top-line readouts from the study around the end of 2022, representing the most important near-term catalyst. Mesdopetam is being developed in collaboration with Ipsen, which will assume responsibility for the drug’s clinical development programme through registration and global commercialisation, should positive Phase IIb data be reported. We maintain our estimates and valuation of IRLAB at SEK6.40bn or SEK123.7 per share.
Year end |
Revenue |
PBT* (SEKm) |
EPS* |
DPS |
P/E |
Yield |
12/20 |
0.4 |
(91.4) |
(1.92) |
0.0 |
N/A |
N/A |
12/21 |
207.9 |
91.1 |
1.76 |
0.0 |
18.5 |
N/A |
12/22e |
62.1 |
(112.9) |
(2.18) |
0.0 |
N/A |
N/A |
12/23e |
0.3 |
(122.7) |
(2.37) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The Phase IIb study for mesdopetam in PD-LIDs is a randomised, double-blind, placebo-controlled study. The trial is being conducted at 46 sites across Europe, the United States and Israel and comprises 154 patients. The primary outcome from the study is a change in daily hours of ON-time (the length of time a patient does not have symptoms) without troublesome dyskinesia. Results from the Phase IIa study improved ON-time in patients by c 2.8 hours compared to c 1.5 hours for existing standard of care, which provides encouragement for the Phase IIb efficacy study, in our view.
As a reminder, in July 2021, IRLAB licensed mesdopetam’s global rights to Ipsen for an upfront payment of US$28m, up to US$335m in potential milestones and low double-digit royalties on sales. As part of the agreement, IRLAB will fund the development of mesdopetam until top-line results from the ongoing Phase IIb trial are reported. We recently reported that Ipsen has initiated standard pharmacology clinical studies for the drug in preparation for Phase III, which is progressing as planned. The three studies will be run in parallel with the ongoing Phase IIb study conducted by IRLAB (see our previous note, ‘Ipsen confirms commitment with clinical studies’).
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Research: Investment Companies
NB Private Equity Partners’ (NBPE) latest NAV (as at end-July 2022) reflects an update on most private valuations from end-March to end-June 2022, which led to a very limited 2% fall in NBPE’s private portfolio fair value. This impressive resilience allowed NBPE to deliver a strong three- and five-year NAV TR to end-July 2022 of 18.6% and 15.3%, respectively (c 2x the return of MSCI World Index), led by co-investments. Despite its strong track record, NBPE’s shares still trade at a c 31% discount to NAV, wider than the average for its direct peers (although it also has a single-layer fee structure but a more diversified portfolio), which we find hard to justify. Its shares now offer an attractive 5.0% annualised yield (versus an average of 2.5% for peers).
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