Last close As at 05/08/2026
—
— 0.00 (0.00%)
Market capitalisation
—
Research: Healthcare
Scandion Oncology is approaching a major inflection point as results from the Phase II CORIST trial of the company’s lead asset, SCO-101, in metastatic colorectal cancer, are expected in Q322. In addition, top-line data from the extended Phase Ib PANTAX study in pancreatic cancer are expected in H123 (previously Q322). In H122, R&D related expenses rose to DKK33.0m, from DKK20.4m in H121, as patient enrolment continued for CORIST and PANTAX. In July 2022, Scandion completed a rights issue, which we estimate will result in a net cash injection of c SEK58m (c DKK41m). At end H122, management reported a cash position of DKK72.7m, however, including net proceeds from the equity raise, we estimate this figure to have risen to c DKK113.7m. At the current burn rate (H122: DKK32.4m), and considering estimated clinical activities, we anticipate the company is funded into FY24, past key readouts in FY22 and FY23. We value Scandion Oncology at SEK609.5m or SEK15.0 per share (previously SEK586.5m or SEK14.4 per share).
Written by
RTW Venture Fund Limited |
Positive outlook for SCO-101 |
H122 update |
|
|
26 August 2022 |
Share price performance
Business description
Next events
Analysts
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Scandion Oncology is approaching a major inflection point as results from the Phase II CORIST trial of the company’s lead asset, SCO-101, in metastatic colorectal cancer, are expected in Q322. In addition, top-line data from the extended Phase Ib PANTAX study in pancreatic cancer are expected in H123 (previously Q322). In H122, R&D related expenses rose to DKK33.0m, from DKK20.4m in H121, as patient enrolment continued for CORIST and PANTAX. In July 2022, Scandion completed a rights issue, which we estimate will result in a net cash injection of c SEK58m (c DKK41m). At end H122, management reported a cash position of DKK72.7m, however, including net proceeds from the equity raise, we estimate this figure to have risen to c DKK113.7m. At the current burn rate (H122: DKK32.4m), and considering estimated clinical activities, we anticipate the company is funded into FY24, past key readouts in FY22 and FY23. We value Scandion Oncology at SEK609.5m or SEK15.0 per share (previously SEK586.5m or SEK14.4 per share).
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
1.0 |
(21.5) |
(0.53) |
0.0 |
N/A |
N/A |
12/21 |
0.8 |
(57.2) |
(1.61) |
0.0 |
N/A |
N/A |
12/22e |
0.8 |
(64.9) |
(1.66) |
0.0 |
N/A |
N/A |
12/23e |
0.8 |
(82.4) |
(1.89) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
SCO-101 progressing on both fronts
In H122, the CORIST and PANTAX development programs continued to progress. Notably, ethical approval for part 3 of the CORIST study (focusing on mutant-RAS patients) has been received, which is now expected to begin patient recruitment in Q322. Furthermore, encouraging patient tolerability data from the PANTAX dose-escalation study has resulted in a dose expansion. Accordingly, top-line readouts from PANTAX are now expected in H123 (previously Q322).
Capital raise funded into FY24
In July 2022 Scandion completed a rights issue, raising gross proceeds of c SEK75m. Based on estimated transaction costs of SEK17m (DKK12m), we estimate it will result in a net cash injection of c SEK58m (DKK41m). The extension of CORIST has led us to revise our R&D estimates down for FY23; however, management has indicated that overall trial timelines will not be affected. We anticipate Scandion will be funded past key readouts into FY24.
Valuation: SEK609.5m or SEK15.0 per share
We value Scandion at SEK609.5m or SEK15.0 per share (previously SEK586.5m or SEK14.4 per share) based on a risk-adjusted NPV of SCO-101 using a 12.5% discount rate and including net cash of SEK72.7m at end H122. Value uplift was realised by rolling our model forwards and including the net rights issue proceeds (SEK58m).
Scandion Oncology is a research client of Edison Investment Research Limited
Exhibit 1: Financial summary
Accounts: IFRS, year-end: 31 December; DDK’000s |
|
|
2020 |
2021 |
2022e |
2023e |
PROFIT & LOSS |
|
|
|
|
|
|
Total revenues |
|
|
1,003 |
797 |
797 |
797 |
Cost of sales |
|
|
0 |
0 |
0 |
0 |
Gross profit |
|
|
1,003 |
797 |
797 |
797 |
Total operating expenses |
|
|
(24,758) |
(56,164) |
(65,160) |
(83,165) |
Research and development expenses |
|
|
(21,672) |
(47,711) |
(52,480) |
(70,485) |
SG&A |
|
|
(3,086) |
(8,453) |
(12,680) |
(12,680) |
EBITDA (normalized) |
|
|
(23,474) |
(54,763) |
(63,980) |
(81,986) |
Operating income (reported) |
|
|
(23,755) |
(55,367) |
(64,363) |
(82,368) |
Operating margin % |
|
|
N/A |
N/A |
N/A |
N/A |
Finance income/(expense) |
|
|
2,233 |
(1,846) |
(576) |
0 |
Exceptionals and adjustments |
|
|
0 |
0 |
0 |
0 |
Profit before tax (reported) |
|
|
(21,522) |
(57,213) |
(64,939) |
(82,368) |
Profit before tax (normalised) |
|
|
(21,522) |
(57,213) |
(64,939) |
(82,368) |
Income tax expense (includes exceptionals) |
|
|
4,384 |
5,508 |
5,508 |
5,508 |
Net income (reported) |
|
|
(17,138) |
(51,705) |
(59,431) |
(76,860) |
Net income (normalised) |
|
|
(17,138) |
(51,705) |
(59,431) |
(76,860) |
Basic average number of shares, m |
|
|
32.1 |
32.1 |
35.9 |
40.7 |
Basic EPS (DKK) |
|
|
(0.53) |
(1.61) |
(1.66) |
(1.89) |
Adjusted EPS (DKK) |
|
|
(0.53) |
(1.61) |
(1.66) |
(1.89) |
Dividend per share (DKK) |
|
|
0.00 |
0.00 |
0.00 |
0.00 |
BALANCE SHEET |
|
|
|
|
|
|
Tangible assets |
|
|
136 |
386 |
338 |
306 |
Intangible assets |
|
|
0 |
0 |
0 |
0 |
Right-of-use assets |
|
|
312 |
1,215 |
1,215 |
1,215 |
Other non-current assets |
|
|
148 |
314 |
314 |
314 |
Total non-current assets |
|
|
596 |
1,915 |
1,867 |
1,835 |
Cash and equivalents |
|
|
5,814 |
105,710 |
80,625 |
2,312 |
Current tax receivables |
|
|
4,384 |
5,500 |
5,500 |
5,500 |
Trade and other receivables |
|
|
1,414 |
2,018 |
1,748 |
1,748 |
Other current assets |
|
|
174,513 |
1,076 |
787 |
787 |
Total current assets |
|
|
186,125 |
114,304 |
88,660 |
10,347 |
Non-current loans and borrowings |
|
|
8 |
0 |
0 |
0 |
Non-current lease liabilities |
|
|
0 |
500 |
500 |
500 |
Other non-current liabilities |
|
|
504 |
84 |
1,390 |
1,390 |
Total non-current liabilities |
|
|
512 |
584 |
1,890 |
1,890 |
Accounts payable |
|
|
26,064 |
4,580 |
10,954 |
10,954 |
Illustrative debt |
|
|
0 |
0 |
0 |
0 |
Current lease obligations |
|
|
316 |
723 |
305 |
305 |
Other current liabilities |
|
|
3,962 |
5,791 |
6,810 |
6,810 |
Total current liabilities |
|
|
30,342 |
11,094 |
18,069 |
18,069 |
Equity attributable to company |
|
|
155,867 |
104,541 |
70,568 |
(7,777) |
CASH FLOW STATEMENT |
|
|
|
|
|
|
Operating income |
|
|
(23,755) |
(55,367) |
(64,363) |
(82,368) |
Depreciation and amortisation |
|
|
281 |
604 |
382 |
382 |
Share based payments |
|
|
0 |
0 |
0 |
0 |
Other adjustments |
|
|
4,223 |
2,899 |
4,023 |
4,023 |
Movements in working capital |
|
|
2,024 |
2,066 |
(5,815) |
0 |
Cash from operations (CFO) |
|
|
(17,227) |
(49,798) |
(65,772) |
(77,963) |
Capex |
|
|
(46) |
(318) |
(334) |
(351) |
Acquisitions & disposals net |
|
|
0 |
(167) |
25 |
0 |
Other investing activities |
|
|
0 |
0 |
0 |
0 |
Cash used in investing activities (CFIA) |
|
|
(46) |
(485) |
(309) |
(351) |
Capital changes |
|
|
7,892 |
150,690 |
40,800 |
0 |
Debt Changes |
|
|
0 |
0 |
0 |
0 |
Other financing activities |
|
|
(226) |
(511) |
(380) |
0 |
Cash from financing activities (CFF) |
|
|
7,666 |
150,179 |
40,420 |
0 |
Cash and equivalents at beginning of period |
|
|
15,421 |
5,814 |
105,710 |
80,625 |
Increase/(decrease) in cash and equivalents |
|
|
(9,607) |
99,896 |
(25,661) |
(78,313) |
Effect of FX on cash and equivalents |
|
|
0 |
0 |
0 |
0 |
Cash and equivalents at end of period |
|
|
5,814 |
105,710 |
80,049 |
2,312 |
Net (debt)/cash |
|
|
5,806 |
105,710 |
80,625 |
2,312 |
Source: Company accounts, Edison Investment Research. Note: Includes shares raised following July 2022 rights issue.
|
||||||||||||
|
||||||||||||
Research: Healthcare
OpGen has announced the launch of its next-generation sequencing (NGS) services in the United States at its new Rockville-based service laboratory. The NGS lab, developed by its subsidiary Ares Genetics, offers short-turnaround genome sequencing of clinical isolates, artificial intelligence (AI) powered outbreak analysis that can be conveniently accessed through the company’s AREScloud web application. The closer proximity to a large US customer base allows OpGen to better leverage its Ares Genetics suite of products, expands its portfolio of services in the United States – in addition to the recent launch of Acuitas AMR Gene Panel – and increases cross-selling opportunities.