IRLAB Therapeutics — Progress across the pipeline in Q324

IRLAB Therapeutics (OMX: IRLAB-A)

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Research: Healthcare

IRLAB Therapeutics — Progress across the pipeline in Q324

IRLAB’s Q324 results highlighted progress across its clinical pipeline. Pirepemat cleared its final safety review and completed patient enrolment in the Phase IIb trial, making way for top-line readouts in Q125. IRL757 also made headway, reporting positive interim data from the first Phase I study and the initiation of a second study in older adults, triggering a US$2.5m (SEK26.6m) milestone payment from MSRD. Mesdopetam reported support from regulators in Germany and Portugal for the planned Phase III design, bolstering upcoming discussions with the EMA. This comes amid efforts by IRLAB towards securing a partner for Phase III, which it aims to launch in 2025. The period also saw two new patents for mesdopetam and pirepemat, extending patent protection to at least 2040. We expect funds at hand and inflows from the latest milestone payment to extend the cash runway into Q225 (Q125 previously), past top-line readouts for pirepemat and IRL757. Our valuation adjusts to SEK92.0/share, from SEK86.2/share.

Written by

Arron Aatkar

Analyst

Healthcare

IRLAB Therapeutics

Progress across the pipeline in Q324

Q324 results

Pharma and biotech

4 November 2024

Price

SEK14.1

Market cap

SEK731m

SEK10.64/US$

Net cash at 30 September 2024 (including lease liabilities)

SEK30.1m

Shares in issue

51.9m

Free float

61.5%

Code

IRLAB-A

Primary exchange

Nasdaq Stockholm

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

8.9

(18.3)

116.3

Rel (local)

12.5

(17.7)

68.8

52-week high/low

SEK19.6

SEK5.9

Business description

Based in Sweden, IRLAB Therapeutics is focused on developing novel drugs for the treatment of neurodegenerative diseases utilising its ISP technology platform. Its two lead assets are in late-stage clinical trials for the symptomatic treatment of Parkinson’s disease: mesdopetam (D3 antagonist) and pirepemat (PFC enhancer).

Next events

Top-line Phase IIb pirepemat results

Q125

Phase I IRL757 results

Q125

Mesdopetam Phase III launch (projected)

2025

Analysts

Dr Arron Aatkar

+44 (0)20 3077 5700

Jyoti Prakash, CFA

+44 (0)20 3077 5700

IRLAB Therapeutics is a research client of Edison Investment Research Limited

IRLAB’s Q324 results highlighted progress across its clinical pipeline. Pirepemat cleared its final safety review and completed patient enrolment in the Phase IIb trial, making way for top-line readouts in Q125. IRL757 also made headway, reporting positive interim data from the first Phase I study and the initiation of a second study in older adults, triggering a US$2.5m (SEK26.6m) milestone payment from MSRD. Mesdopetam reported support from regulators in Germany and Portugal for the planned Phase III design, bolstering upcoming discussions with the EMA. This comes amid efforts by IRLAB towards securing a partner for Phase III, which it aims to launch in 2025. The period also saw two new patents for mesdopetam and pirepemat, extending patent protection to at least 2040. We expect funds at hand and inflows from the latest milestone payment to extend the cash runway into Q225 (Q125 previously), past top-line readouts for pirepemat and IRL757. Our valuation adjusts to SEK92.0/share, from SEK86.2/share.

Year end

Revenue (SEKm)

PBT*
(SEKm)

EPS*
(SEK)

DPS
(SEK)

P/E
(x)

Yield
(%)

12/22

61.3

(113.1)

(2.18)

0.0

N/A

N/A

12/23

5.7

(177.8)

(3.43)

0.0

N/A

N/A

12/24e

104.0

(120.8)

(2.33)

0.0

N/A

N/A

12/25e

32.5

(169.9)

(3.27)

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Multiple pipeline catalysts approaching…

Early 2025 is set to be a catalyst-rich period for IRLAB, with key events expected across the pipeline. Pirepemat (PD-Falls) is close to completing its Phase IIb React PD trial, having enrolled the last patient in September 2024. Top-line results are expected at end-Q125. IRL757 (for apathy) is progressing positively in its first Phase I trial, financed by the Michael J Fox Foundation (MJFF), while its second trial recently commenced in healthy older adults (the main target population) as part of the collaboration with the MSRD. Top-line results are expected by end-Q125.

…as the search for a mesdopetam partner heats up

We believe investors are paying close attention to the mesdopetam programme, for which securing a partner to finance Phase III remains a top priority. IRLAB recently announced positive feedback from scientific advisory meetings with German and Portuguese regulators, providing guidance on critical components for the Phase III programme, which was in line with the consensus reached with the US FDA. The potential for mesdopetam to address levodopa-induced dyskinesias (PD-LIDs) is significant, supported by new market research and meta-analysis highlights by the company. Subject to partnership, a Phase III trial is expected to commence in 2025.

Valuation: SEK4.8bn or SEK92.0 per share

We adjust our near-term estimates for the Q324 results while keeping our longer-term assumptions broadly unchanged. The key alterations to our valuation relate to the longer patent protection for mesdopetam and increased cash from the US$2.5m milestone payment, both of which have a positive impact on the valuation. We upgrade our valuation of IRLAB to SEK92.0/share, from SEK86.2 previously.

Q3 update: Headway across all pipeline activities

During Q324, IRLAB made tangible progress across its broad portfolio of candidates, which spans all stages of clinical development, from preclinical programmes through to its lead asset, mesdopetam, which is Phase III-ready (Exhibit 1).

Exhibit 1: IRLAB’s portfolio of candidates

Source: IRLAB Q324 report. Note: *Currently no active clinical development in this indication. **Supported by the Michael J Fox Foundation and in collaboration with McQuade Center for Strategic Research and Development, part of Otsuka.

Mesdopetam is a Phase III-ready candidate. The latest update showcased new market research, which involved interviews with healthcare professionals in the US and Europe to better understand the current standard of care and medical need for novel treatments to address levodopa-induced dyskinesias in Parkinson’s disease (PD-LIDs). The market research demonstrated that healthcare professionals have a strong willingness to pay for a novel and effective anti-dyskinetic drug, serving as a reminder of the commercial potential for the candidate in these regions. The company highlighted that European health providers, in particular, focused on mesdopetam as a potential treatment for disabling dyskinesia, which affects c 50% of all PD-LIDs patients and c 15% of PD patients and which currently has no treatments available. Management also alluded to the potential positioning and pricing benefits related to this with European regulators.

Encouragingly, the design of the Phase III programme is aligned with the interests of the healthcare providers. We highlight that the only FDA-approved drug for PD-LIDs is Adamas’s Gocovri, though this is associated with myriad side effects such as symptoms of psychosis (eg hallucinations). This may represent an opportunity for mesdopetam to offer differentiation, as while PD-LIDs is the primary target indication, the drug has previously shown promise for PD-Psychosis, which may represent an opportunity for label expansion, while addressing a limitation of Gocovri. Furthermore, a meta-analysis was recently presented at the International Congress of Parkinson's Disease and Movement Disorders, showcasing the anti-dyskinetic efficacy of mesdopetam without risk of motor function impairment and emphasising the potential for mesdopetam to provide a clinically meaningful benefit for PD patients. As discussed above, this update also reported the positive feedback from BfArM, the German regulatory authority, and Infarmed, its Portuguese counterpart. In accordance with the FDA, a consensus was reached on the patient population, trial endpoints, the protocol following regulatory guidelines of at least a three-month treatment period, inclusion/exclusion criteria, dose selection (7.5mg twice daily, as tested in the prior Phase IIb trial), number of participants, as well as details on safety evaluation and documentation requirements. We highlight that the purpose of these discussions was to ensure alignment on regulatory requirements for regions beyond the US and we note that IRLAB is preparing for similar upcoming interactions with the European Medicines Agency (EMA).

In September 2024, IRLAB announced it had been granted a new patent in Europe relating to a new salt of the drug, potentially extending market exclusivity to 2040 (from 2037 previously). We believe this adds to the commercial potential of the programme. The next inflection point will be securing a partner to finance the planned Phase III programme ahead of a (projected) launch in 2025.

Pirepemat is currently being evaluated in the Phase IIb React PD trial, a randomised, double-blind, placebo-controlled study (placebo; or 300mg pirepemat/day; or 600mg pirepemat/day) to assess the candidate as a potential treatment for PD-Falls (to improve balance and reduce falls in patients with PD), which affects nearly half of all PD patients. Following a successful safety review in July 2024, which concluded with the independent data and safety monitoring board unanimously recommending that React PD should continue without changes, IRLAB announced that it had completed patient enrolment in September 2024. Management also communicated that with over 100 patients included in the study, the blinded data thus far had demonstrated that the number of falls for the population had reduced by approximately one-third from baseline. As a reminder, a 25% reduction in falls compared to placebo is considered to be clinically meaningful, and the above data therefore provides early encouragement. We note, however, that while positive for the enrolled patients, since the study is blinded, it cannot be determined yet whether (and what proportion of) this is attributable to pirepemat. We look forward to more detailed conclusions, which will be available once the trial has been completed (anticipated at the end of Q125) and following data management, database locking and analysis of the data.

In September 2024, IRLAB reported the granting of an additional patent for pirepemat. The newly granted patent, which covers the salt of the candidate used in its ongoing clinical development efforts, has the potential to expand its protection in the US into the early 2040s. This is incremental to similar patents, and composition of matter patents, already granted in other key geographies such as Europe, Japan and China (predicted to expire in 2038), fortifying the robust patent portfolio for pirepemat.

IRL757 is being developed for apathy in PD and Alzheimer’s disease (AD) patients. It is currently in two active Phase I safety studies, the first of which is financed by the MJFF via a US$2m grant. In October 2024, the single-ascending dose portion of the study was completed with the initial results showing good absorption and exposure in the body, as well as desirable safety and tolerability. The multiple-ascending dose portion of the study is ongoing.

The second Phase I study, funded by the McQuade Center for Strategic Research and Development (MSRD) and evaluating IRL757 in healthy elderly subjects (over the age of 65), was initiated in October, triggering a US$2.5m (c SEK26.6m) milestone payment from MSRD, which will fund R&D efforts through to proof-of-concept. The second Phase I study is a single-ascending dose study and management has indicated this study will not include a multiple-ascending dose portion.

We believe the external involvement in the IRL757 programme highlights its potential to address the unmet medical need in the space (there are no approved drugs specifically for apathy, which effects 20–90% of all patients with PD or AD). Top-line results for these two Phase I studies are expected in late Q125, further potential upcoming catalysts for the company.

Preclinical assets: IRL942 and IRL1117 are being developed for cognitive impairment and as a once-daily PD treatment, respectively. Despite IRLAB’s highly active clinical pipeline, the advancement of these preclinical assets remains a strategic priority for the company, reflective of its mission to discover and develop effective treatments comprehensively covering the complexities of PD and neurological conditions. Management intends to advance IRL942 and IRL1117 to Phase I-ready status in 2025.

In our recent executive interview, Kristina Torfgård, who joined IRLAB as CEO in August 2024, outlined the company’s strategic priorities going into the final quarter of the year and upcoming inflection points (Exhibit 2).

Exhibit 2: Executive interview with CEO Kristina Torfgård

Source: IRLAB Therapeutics, Edison Investment Research

Financials

IRLAB reported net revenues of SEK9.0m in Q324, which we believe were related to invoiced costs to MSRD for the pre-Phase I development work on IRL757, leading up to the commencement of the second Phase I study in elderly subjects in October 2024. We note that the company had invoiced and subsequently received a total of US$5.1m (c SEK55m) in development costs from MSRD in Q2/Q324, to be recognised as income over the next 12 months, in line with the costs incurred related to IRL757 development. Based on management updates, we understand that SEK21m of these have already been recognised in the income statement across Q2/Q324, with the remaining SEK34m earmarked for near-term development activity for IRL757 likely to recognised as income and costs over the next three quarters (until Q225). IRLAB recorded SEK7.6m in other operating income, which includes part of the grant received from the MJFF for the Phase I development of IRL757 (US$2m/c SEK21.3m) recognised as revenue. Of the total MJFF grant, IRLAB has received payments totalling SEK10.4m to date, including SEK3.4m in Q324.

Post period, IRLAB received a further US$2.5m (c SEK26.6m) milestone payment from MSRD related to the dosing of the first patient in the second Phase I safety study for IRL757 in healthy adults over the age of 65. This will be recorded as revenue in Q424.

Operating expenses for the quarter were reported at SEK46.0m, a c 12% increase over Q323 (SEK41.1m). This increase was attributed entirely to the higher R&D costs, particularly related to IRL757. The company reported SEK38.3m in R&D expenses in Q324 (+9.5% over the Q323 figure of SEK35.0m), of which c SEK10m was related to internally funded R&D, primarily attributed to pirepemat Phase IIb React PD trial expenses (IRL757 costs are financed by the MJFF and MSRD). With the last patient in the trial recruited in October 2024, we expect internal R&D expenses to fall significantly, likely from late Q225 or early Q325. Personnel expenses for the quarter were SEK9.4m, slightly down on the SEK9.9m recorded in Q323 and materially lower than the previous quarter’s figure of SEK13.5m. Overall operating loss for Q324 improved to SEK29.4m, versus SEK40.7m in Q323. The operating loss during Q224 was SEK5.1m, although this reflected the flow-through benefit from the US$3m (SEK32m) upfront payment received from MSRD.

Interest expenses during the period were SEK2.9m and we expect this figure to stay at similar levels up to Q225, before declining with the repayment of the SEK55m loan from Fenja Capital (formerly Formue Nord), which matures in May 2025. Net loss for Q324 was SEK31.7m (vs SEK38.4m in Q323 and SEK7.1m in Q224). Cash outflow from operations in Q324 improved materially to SEK6.8m from SEK36.7m, but we note that this was attributed primarily to the SEK34m in prepaid expenses from the MJFF and MSRD.

IRLAB ended Q324 with a gross cash position of SEK90.4m (net cash of SEK30.1m accounting for SEK60.3m in debt and leases outstanding). We note that this includes SEK34m in pre-paid expenses received from the MJFF and MSRD but not yet booked as revenues and expenses. Including the SEK26.6m milestone payment from MSRD, we estimate the gross funds at hand to be sufficient to fund operations into Q225, past top-line results from the Phase IIb React PD study for pirepemat and the Phase I study for IRL757, and, potentially, a licensing deal for mesdopetam (Phase III trial expected to start in 2025, contingent on securing a licensing/partnership deal).

Changes to estimates

Based on the Q324 results and post-period development, we have made certain adjustments to our short-term estimates. For FY24, we have increased our revenue estimate from SEK75.6m to SEK104.0m, reflecting the first nine months of FY24 (9M24) revenue contribution, potential further sales recognition from the costs already invoiced to MSRD and the MJFF and the US$2.5m (SEK26.6m) in milestone payment received from MSRD in October 2024. For FY25, we have raised our revenue estimate from SEK27.5m to SEK32.5m, expecting increased revenue recognition related to the recently commenced Phase I study in healthy elderly participants. We have made similar adjustments to our external expense estimates (raising the costs by the amounts invoiced). For personnel expenses, we have cut our FY24 estimate to SEK43.0m, from SEK50.5m previously, to reflect the 9M24 run rate. Similar adjustments have been made to the FY25 personnel expense estimates (SEK40.0m from SEK45.4m previously). Overall, our revised operating loss estimates for FY24 and FY25 are SEK112.8m and SEK165.9m, respectively (SEK151.6m and SEK174.1m previously). We note that our estimates do not currently account for potential additional activity-based milestone payments under the MSRD collaboration deal (US$3m remaining after the recent receipt of US$2.5m).

Valuation

We value IRLAB using a standard risk-adjusted net present value (rNPV) approach for its three clinical stage programmes: mesdopetam, pirepemat and IRL757. For mesdopetam, we keep our underlying market and launch assumptions broadly unchanged for now (notwithstanding the more protracted partnering discussion), but extend the timelines to patent loss to 2040, from 2037 previously, following the recent announcement of the new patent in Europe. For pirepemat and IRL-757, we keep our long-term assumptions unchanged.

Based on the changes and reflecting the latest forex and pro forma net cash position (including SEK26.6m in milestone payments received post-period), our valuation adjusts upwards to SEK4.8bn or SEK92.0 per share (from SEK4.47bn or SEK86.2 per share previously). Exhibit 3 presents a breakdown of our rNPV valuation for IRLAB.

Exhibit 3: IRLAB Therapeutics rNPV valuation

Product

Indication

Launch

Peak

Peak sales
(US$m)

Value
(SEKm)

Probability

rNPV
(SEKm)

rNPV/share (SEK)

Mesdopetam

PD-LIDs

2028

2034

1,268.5

1,268.5

5,394.6

40%

2,166.2

Mesdopetam

PD-Psychosis

2032

2038

726.5

726.5

1,274.9

20%

230.7

Pirepemat

PD-Falls (postural hypotension)

2029

2035

1,057.2

1,057.2

6,751.1

30%

1,988.8

IRL757

Apathy (PD and AD)

2031

2037

2,305.7

2,305.7

4,392.5

7.5%

329.4

Pro-forma net cash as of 30 September 2024

 

 

 

56.7

100%

56.7

1.1

Valuation

 

 

 

17,869.8

4,771.8

92.0

Source: Edison Investment Research

We note that our model assumes IRLAB will be able to secure a partnership for the next phase of development for mesdopetam before initiation of the Phase III trial in 2025. In the absence of a licensing deal for mesdopetam, we estimate the need to raise SEK500m before becoming self-sufficient in 2028, following the expected launch of mesdopetam. We account for this capital requirement as illustrative debt in our model, assuming a SEK250m raise in FY25 (likely Q225, prior to the May 2025 maturity of the SEK55m debt outstanding) and another SEK250m in FY26. Alternatively, if these funds were to be raised through an equity issue, IRLAB would have to issue 35.5m shares, which, assuming the current trading price of SEK14.1, would result in our per-share valuation decreasing to SEK60.4 from SEK88.7 (the number of shares outstanding would increase from 51.9m to 87.3m).

Exhibit 4: Financial summary

Accounts: IFRS; year end 31 December; SEK000s

 

 

2021

2022

2023

2024e

2025e

PROFIT & LOSS

 

 

 

 

 

 

 

Total revenues

 

 

207,906

61,277

5,720

103,953

32,500

Cost of sales

 

 

0

0

0

0

0

Gross profit

 

 

207,906

61,277

5,720

103,953

32,500

Total operating expenses

 

 

(155,330)

(174,386)

(186,486)

(216,723)

(198,403)

Research and development expenses

 

 

(129,748)

(146,178)

(151,312)

(173,378)

(160,000)

EBITDA (reported)

 

 

56,050

(108,330)

(176,450)

(108,105)

(164,756)

Operating income (reported)

 

 

52,576

(113,109)

(180,766)

(112,770)

(165,903)

Operating margin %

 

 

N/A

N/A

N/A

N/A

N/A

Finance income/(expense)

 

 

(795)

(297)

2,927

(7,999)

(3,957)

Exceptionals and adjustments

 

 

0

0

0

0

0

Profit before tax (reported)

 

 

51,781

(113,406)

(177,839)

(120,769)

(169,860)

Profit before tax (normalised)

 

 

91,131

(113,147)

(177,839)

(120,769)

(169,860)

Income tax expense (includes exceptionals)

 

 

0

0

0

0

0

Net income (reported)

 

 

51,781

(113,406)

(177,839)

(120,769)

(169,860)

Net income (normalised)

 

 

91,131

(113,147)

(177,839)

(120,769)

(169,860)

Basic average number of shares, m

 

 

51.7

51.8

51.9

51.9

51.9

Basic EPS (SEK)

 

 

1.00

(2.19)

(3.43)

(2.33)

(3.27)

Adjusted EPS (SEK)

 

 

1.76

(2.18)

(3.43)

(2.33)

(3.27)

Dividend per share (SEK)

 

 

0.00

0.00

0.00

0.00

0.00

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

 

 

Tangible assets

 

 

8,348

8,009

6,671

2,306

1,459

Intangible assets

 

 

42,661

46,862

46,862

46,862

46,862

Other non-current assets

 

 

0

0

0

0

0

Total non-current assets

 

 

51,009

54,871

53,533

49,168

48,321

Cash and equivalents

 

 

401,897

252,776

111,309

45,182

81,169

Inventories

 

 

0

0

0

0

0

Trade and other receivables

 

 

19,543

15,908

12,278

12,130

2,130

Other current assets

 

 

0

0

0

0

0

Total current assets

 

 

421,440

268,684

123,587

57,312

83,299

Non-current loans and borrowings

 

 

0

0

24,511

0

244,511

Non-current lease liabilities

 

 

3,566

381

115

0

0

Other non-current liabilities

 

 

0

0

0

0

0

Total non-current liabilities

 

 

3,566

381

24,626

0

244,511

Accounts payable

 

 

4,634

0

0

0

0

Current loans and borrowings

 

 

0

0

0

49,511

0

Current lease liabilities

 

 

3,034

3,595

2,940

0

0

Deferred Income

 

 

42,576

0

0

0

0

Other current liabilities

 

 

19,158

28,748

33,792

61,976

61,976

Total current liabilities

 

 

69,402

32,343

36,732

111,487

61,976

Equity attributable to company

 

 

399,481

290,830

115,764

(5,005)

(174,865)

 

 

 

 

 

 

 

 

CASH FLOW STATEMENT

 

 

 

 

 

 

 

Operating income

 

 

52,576

(113,109)

(180,766)

(112,770)

(165,903)

Depreciation and amortisation

 

 

3,474

4,779

4,316

4,665

1,147

Share based payments

 

 

0

0

0

0

0

Other adjustments

 

 

38,295

(297)

2,927

(7,999)

(3,957)

Movements in working capital

 

 

34,296

(33,985)

8,673

28,332

10,000

Cash from operations (CFO)

 

 

128,641

(142,612)

(164,850)

(87,772)

(158,713)

Capex

 

 

(708)

(2,876)

(293)

(300)

(300)

Acquisitions & disposals net

 

 

0

(500)

0

0

0

Other investing activities

 

 

0

0

0

0

0

Cash used in investing activities (CFIA)

 

 

(708)

(3,376)

(293)

(300)

(300)

Net proceeds from issue of shares

 

 

(180)

0

0

0

0

Movements in debt

 

 

(2,865)

(3,134)

20,905

21,945

195,000

Other financing activities

 

 

0

0

2,771

0

0

Cash from financing activities (CFF)

 

 

(3,045)

(3,134)

23,676

21,945

195,000

Cash and equivalents at beginning of period

 

 

277,009

401,897

252,776

111,309

45,182

Increase/(decrease) in cash and equivalents

 

 

124,888

(149,122)

(141,467)

(66,127)

35,987

Effect of FX on cash and equivalents

 

 

0

1

0

0

0

Cash and equivalents at end of period

 

 

401,897

252,776

111,309

45,182

81,169

Net (debt)/cash

 

 

401,897

252,776

86,798

(4,329)

(163,342)

Source: Company reports, Edison Investment Research


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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

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United Kingdom

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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.

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United States

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London, WC1R 4PS

United Kingdom

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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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