Medlab Clinical (ASX: MDC)

Currency in AUD

Last close As at 06/02/2023

AUD6.75

−0.77 (−10.24%)

Market capitalisation

AUD17m

Based in Australia, Medlab Clinical is developing therapeutics using its proprietary delivery platform NanoCelle. Its most advanced programme is in cancer pain management with lead drug candidate NanaBis, a medicinal cannabis product for cancer-related bone pain.

There is a growing consensus in the medical community that medicinal cannabis has a place in chronic pain management. With the opioid crisis unravelling, we believe support for non-opioid pain killers from various stakeholders will only grow.

Test tube with DNA

Sector

Healthcare

Equity Analyst

Soo Romanoff

Soo Romanoff

Managing Director - Head of Content, Healthcare

Key Management

  • Sean Hall

    CEO

Balance Sheet

Forecast net cash (A$m)

8.3

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 0.7 (32.5) (64.0)
Relative (5.9) (37.3) (65.5)
52 week high/low A$21.0/A$6.5

Financials

As Medlab Clinical moves into 2023, the expected commencement of a Phase III trial for NanaBis (the company’s cannabinoid based analgesic therapy) in cancer-induced bone pain will be the focus for investors. Management made considerable progress towards Phase III in 2022, by switching to a purely synthetic cannabinoid formulation and gathering encouraging real-world data on NanaBis use. We believe these actions should maximise the potential for NanaBis in both a regulatory and a commercial setting. We note that successful progression of the company’s programmes will be contingent on Medlab’s ability to raise capital, given the short cash runway (funded into March 2023) and recent setback with the Nasdaq listing plans. We update our estimates to reflect the financing risk and macro uncertainty, resulting in our valuation decreasing to A$183.5m or A$80.4/share, from A$236.1m or A$103.5/share.

Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (c) P/E (x) P/CF (x)
2021A 8.1 (11.4) (12.4) (627.0) N/A N/A
2022A 6.0 (7.4) (8.4) (314.0) N/A N/A
2023E 6.5 (13.0) (13.9) (604.1) N/A N/A
2024E 4.3 (20.8) (21.7) (943.9) N/A N/A

More from our Healthcare team

Healthcare

Healthcare Week 2023

Analyst of the week

Soo Romanoff

Soo Romanoff

Managing Director - Head of Content, Healthcare

Read latest

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free