Last close As at 05/08/2026
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Market capitalisation
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Research: Healthcare
Shield Therapeutics (STX) has announced that founder Carl Sterritt has resigned from his role as CEO with mutual agreement from its main shareholders. Tim Watts has been appointed as CEO from his position of CFO (since August 2018). While the timing does come as a surprise, we do not expect any disruptions to the business strategy; successfully commercialising Feraccru through partners is key to STX realising its value. Importantly, the company reported an end-FY19 cash position of £4.1m and the post-period end upfront payment of $11.4m from ASK Pharm received in January 2020 extends the cash runway into 2021. Our valuation of STX is unchanged at £344.7m or 294p/share.
Written by
Shield Therapeutics |
Tim Watts succeeds Carl Sterritt as CEO |
Directorate change |
Pharma & biotech |
22 April 2020 |
Share price performance
Business description
Analysts
Shield Therapeutics is a research client of Edison Investment Research Limited |
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Shield Therapeutics (STX) has announced that founder Carl Sterritt has resigned from his role as CEO with mutual agreement from its main shareholders. Tim Watts has been appointed as CEO from his position of CFO (since August 2018). While the timing does come as a surprise, we do not expect any disruptions to the business strategy; successfully commercialising Feraccru through partners is key to STX realising its value. Importantly, the company reported an end-FY19 cash position of £4.1m and the post-period end upfront payment of $11.4m from ASK Pharm received in January 2020 extends the cash runway into 2021. Our valuation of STX is unchanged at £344.7m or 294p/share.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/17 |
0.64 |
(18.42) |
(15.2) |
0.0 |
N/A |
N/A |
12/18 |
11.88 |
(5.15) |
(1.5) |
0.0 |
N/A |
N/A |
12/19e |
2.92 |
(7.82) |
(5.2) |
0.0 |
N/A |
N/A |
12/20e |
11.74 |
0.27 |
1.3 |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
In July 2019, the FDA approved the product for the treatment of iron deficiency in patients with any underlying cause – the broadest possible label. The 2019 business and trading update highlighted a landmark year for Feraccru/Accrufer (oral ferric maltol) in Europe, with sales volumes growing 67% through commercialisation partner, Norgine. Momentum has continued into 2020 with an out-licensing deal with China-based Beijing Aosaikang Pharmaceutical (ASK Pharm) that covers China, Hong Kong, Macau and Taiwan. We expect a US partnering deal (2020) and associated upfront licensing payment to strengthen the balance sheet, further reducing the requirement for a capital increase. We note that Carl Sterritt will continue to actively support US partnering activities to ensure a smooth transition and remains a significant shareholder.
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Research: TMT
GB Group’s (GBG’s) year-end trading update confirmed a strong performance in FY20, despite COVID-19 restrictions in Asia Pacific having a modest impact in Q4. Although the lockdown restrictions are boosting demand for online products and services, not all verticals are benefiting (eg travel, transport). We have revised our FY21 and FY22 forecasts to reflect lower levels of usage-based revenues and new business as well as reductions to operating costs. We estimate that the company has ample funds to manage through the disruption and in the longer-term should be a beneficiary of increasing amounts of business shifting online.