Currency in AUD
Last close As at 26/05/2023
AUD0.04
▲ 0.01 (33.33%)
Market capitalisation
AUD26m
Research: Healthcare
Arovella has entered into a strategic collaboration with Imugene, investigating the company’s lead cell-therapy programme CAR19-iNKT (ALA-101) with Imugene’s onCARlytics (CF33-CD19) platform in treating solid tumours. The agreement will see both companies jointly conduct pre-clinical studies for the ALA-101/CF33-CD19 combination, with initial results from the animal studies expected in H123. Combinational oncology treatment regimens are often associated with superior clinical outcomes compared to monotherapies, so we see this partnership as highly positive for the development of ALA-101. Additionally, the study, if successful, may expand the scope of ALA-101’s clinical potential to solid tumours (c 90% of all cancer cases) offering future opportunities for the cell-therapy programme, in our view. We continue to value Arovella at $31m or A$0.05/share.
Arovella Therapeutics |
Positive collaboration with ALA-101 |
Collaboration update |
Pharma and biotech |
27 September 2022 |
Share price performance Business description
Analysts
Arovella Therapeutics is a research client of Edison Investment Research Limited |
Arovella has entered into a strategic collaboration with Imugene, investigating the company’s lead cell-therapy programme CAR19-iNKT (ALA-101) with Imugene’s onCARlytics (CF33-CD19) platform in treating solid tumours. The agreement will see both companies jointly conduct pre-clinical studies for the ALA-101/CF33-CD19 combination, with initial results from the animal studies expected in H123. Combinational oncology treatment regimens are often associated with superior clinical outcomes compared to monotherapies, so we see this partnership as highly positive for the development of ALA-101. Additionally, the study, if successful, may expand the scope of ALA-101’s clinical potential to solid tumours (c 90% of all cancer cases) offering future opportunities for the cell-therapy programme, in our view. We continue to value Arovella at $31m or A$0.05/share.
Year end |
Revenue (A$m) |
PBT* (A$m) |
EPS* |
DPS |
P/E |
Yield |
06/21 |
0.3 |
(3.4) |
(1.15) |
0.0 |
N/A |
N/A |
06/22 |
0.3 |
(7.4) |
(1.42) |
0.0 |
N/A |
N/A |
06/23e |
2.4 |
(5.6) |
(0.87) |
0.0 |
N/A |
N/A |
06/24e |
6.2 |
(2.1) |
(0.35) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
As a reminder, ALA-101 is an invariant natural killer T (iNKT) cell platform, modified with a chimeric antigen receptor (CAR) that targets both CD1d and CD19 expressed on the surface of cancer cells. ALA-101 has demonstrated pre-clinical proof of concept for the treatment of CD19 expressing blood cancers (expressed in c 80–100% of B cell lymphomas and leukaemias); however, CD19 is often under-expressed in solid tumours. Imugene’s oncolytic viral therapy, CF33-CD19, works by infecting solid tumour cancer cells and stimulating them to express CD19 on their surface. We therefore view the ALA-101/CF33-CD19 developmental programme as a synergistic combination that may offer future potential in new solid tumour indications.
The research collaboration includes an initial 12-month pre-clinical study, to be funded by Arovella, with the option to expand the collaboration into clinical development. The companies are likely to finalise the agreement and pre-clinical study design by end-2022 with readouts by end-H223. If positive, management intends to file an investigational new drug application in H124 to initiate Phase I FDA studies in H224. We see the initiation of FDA studies as the next major catalyst for the programme.
|
|
Research: TMT
The MISSION Group’s first-half results are as presaged in July’s trading update, with 10% growth in both revenue and operating profit. Exposure to the technology and healthcare industries is a net positive and recovery in live events and property also contributed to progress. The strengthened balance sheet equips the group to continue with infill M&A. FY22e and FY23e market estimates are unchanged, with profits (as usual) weighted to Q4, taking into account a likely less favourable trading backdrop in H222 in some operating territories. The shares have outperformed peers year to date, but continue to trade at a substantial discount.
Get access to the very latest content matched to your personal investment style.