Nicox — NCX-4251 setback sharpens focus on NCX-470

Nicox (Euronext Growth: ALCOX)

Last close As at 27/03/2024

EUR0.39

0.00 (0.00%)

Market capitalisation

EUR20m

More on this equity

Research: Healthcare

Nicox — NCX-4251 setback sharpens focus on NCX-470

Nicox reported that the Mississippi Phase IIb study assessing NCX-4251 against placebo in patients with acute exacerbations of blepharitis did not meet its primary or secondary efficacy endpoints. Although we reduce our NCX-4251 probability of success and push out its potential launch timelines, this does not substantially affect our valuation of the company, as we continue to view the primary driver (c 80% of our rNPV valuation) as the NCX-470 programme in glaucoma. Top-line data from Mont Blanc, the first of two Phase III NCX-470 studies in glaucoma and ocular hypertension, are expected in Q222. We believe that NCX-470, if approved, could become the most potent single-agent glaucoma drug on the market in terms of intraocular pressure (IOP) lowering efficacy.

Written by

Pooya Hemami

Analyst - Healthcare

Healthcare

Nicox

NCX-4251 setback sharpens focus on NCX-470

NCX-4251 trial update

Pharma & biotech

24 September 2021

Price

€3.29

Market cap

€122m

$1.17/€

Net cash (€m) at 30 June 2021

18.5

Shares in issue

37.1m

Free float

98%

Code

COX

Primary exchange

Euronext

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

1.1

(13.1)

(9.5)

Rel to TA-100

0.7

(15.1)

(34.5)

52-week high/low

€5.88

€3.07

Business description

Based in France, Nicox develops therapeutics for the treatment of ocular conditions. Lead development candidate NCX-470 is in Phase III studies for the treatment of glaucoma. Nicox also receives licence revenue from its partners for its FDA-approved drugs Vyzulta and Zerviate.

Next events

Mont Blanc Phase III NCX-470 top-line results

Q222

Denali Phase III NCX-470 confirmatory study top-line results

2023

Analysts

Pooya Hemami, CFA

+1 646 653 7026

Maxim Jacobs, CFA

+1 646 653 7027

Nicox reported that the Mississippi Phase IIb study assessing NCX-4251 against placebo in patients with acute exacerbations of blepharitis did not meet its primary or secondary efficacy endpoints. Although we reduce our NCX-4251 probability of success and push out its potential launch timelines, this does not substantially affect our valuation of the company, as we continue to view the primary driver (c 80% of our rNPV valuation) as the NCX-470 programme in glaucoma. Top-line data from Mont Blanc, the first of two Phase III NCX-470 studies in glaucoma and ocular hypertension, are expected in Q222. We believe that NCX-470, if approved, could become the most potent single-agent glaucoma drug on the market in terms of intraocular pressure (IOP) lowering efficacy.

Year end

Revenue (€m)

PBT*
(€m)

EPS*
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/19

8.3

(16.0)

(0.40)

0.0

N/A

N/A

12/20

14.4

(10.2)

(0.30)

0.0

N/A

N/A

12/21e

8.9

(17.2)

(0.46)

0.0

N/A

N/A

12/22e

12.0

(16.1)

(0.43)

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. Normalised 2020 figures differ from reported amounts primarily due to the €6.9m loss reported following the divestment of Nicox’s holdings in VISUfarma.

Signals of efficacy still shown in Mississippi trial

While the primary efficacy endpoints were not met, some signals of potential efficacy were still observed. There were statistically significant differences versus placebo in the change from baseline in the composite score of the three primary blepharitis signs and symptoms at days 8, 11 and 15 (p=0.01) after 14 days of therapy. Nicox expects to meet with the FDA in early 2022, then provide an update on the next development steps. We have pushed back the potential commercialisation timeline to 2026 (from 2025, previously) and have reduced the programme’s probability of success in our valuation to 30% (from 40%, previously).

NCX-470 promises best-in-class IOP lowering efficacy

NCX-470 (0.065%) has already shown statistical superiority in IOP lowering to prostaglandin F2α (PGA) drug latanoprost in Phase II, delivering up to 1.4mmHg further IOP reduction at day 28. If efficacy is met in the two Phase III trials (Mont Blanc and Denali), NCX-470 could potentially become the first non-combination glaucoma drug product in pivotal studies with statistical superiority to a standalone PGA drug, which we believe should support its market adoption and competitiveness.

Valuation: rNPV of €318m

Nicox reported H121 gross cash and equivalents of €36.5m, which we believe should fund its operations into H222. The NCX-4251 setback, slightly offset by minor FX changes, reduces our rNPV pipeline valuation to €317.7m, from €325.0m previously. Altogether, we now obtain an rNPV of €317.7m, down from €325m previously. After adding €18.5m in H121 net cash, we obtain an equity value of €336.3m, or €9.06 per share.

NCX-4251 did not meet Phase IIb primary endpoints

Nicox reported on 23 September that NCX-4251 did not meet its primary and secondary endpoints in its Mississippi Phase IIb study assessing once-daily dosed NCX-4251 (a proprietary ophthalmic formulation of fluticasone propionate nanocrystals) against placebo in patients with acute exacerbations of blepharitis. The study enrolled 224 patients at multiple US clinical centres, and its primary outcome measure was the proportion of patients achieving complete cure in all three of the selected eyelid-specific signs and symptoms of blepharitis (margin redness, debris and discomfort) at day 15. The two secondary endpoints were measures of the signs and symptoms of dry eye.

While the above endpoints were not met, the company reported a signal of potential efficacy as there was a numerical improvement over placebo in the primary outcome measure of complete cure (score of 0 on a 0–3 scale) in eyelid redness, debris and discomfort at day 15. NCX 4251 also showed a statistically significant difference versus placebo in the exploratory endpoint of change from baseline in the composite score of the same key signs and symptoms at day 8 (p=0.03), day 11 (p=0.01) and day 15 (p=0.01). The company indicates that it will analyse the data and determine what key signs and symptoms of focus for future development. NCX 4251 was also found to be safe and well-tolerated over the 14 days of treatment, with no serious adverse events (AEs). All of the AEs in the treatment arm were mild and there were no discontinuations due to an AE. The company plans to have a meeting with the FDA in early 2022 to discuss a future development plan for NCX-4251, after which it plans to provide an update on the next steps.

The company previously anticipated that the Mississippi study would count as one of the two pivotal trials required by the FDA for New Drug Application (NDA) submission if the primary endpoint had been met. Given that the primary and secondary Mississippi endpoints were not met and the reduced visibility on next NCX-4251 development steps, we have pushed back the potential commercialisation timeline to 2026 (from 2025, previously) to allow for an additional clinical trial if needed. We have also reduced the programme’s probability of success in our valuation to 30% (from 40%, previously) given that there is increased uncertainty about the treatment’s effectiveness in acute blepharitis (considering that the primary endpoints were not met).

Financials and valuation

Nicox reported that at 30 June 2021 it had €36.5m in cash and equivalents versus €42.0m at 31 March 2021. It also reported €18.0m in gross H121 debt consisting of €16.0m in the form of a bond financing agreement with Kreos Capital and a €2m credit agreement with Société Générale and LCL, guaranteed by the French State and granted in August 2020. We have maintained our local currency financial forecasts (for instance, in US dollars for the US market) for the projected period (through to 2024) but, as stated above, have pushed back our NCX-4251 launch timeline to 2026. We have also maintained our existing assumptions for all of Nicox’s remaining programmes (with NCX-470 being the lead driver of our valuation), and have slightly adjusted our FX assumptions (from $1.18/€ to $1.17/€).

We continue to estimate that Nicox has sufficient funds on hand to operate into H222. We continue to model a €10m fund-raising in 2022, followed by an additional €10m in 2023 and €20m in 2024 (all fund-raisings modelled as illustrative debt). Following the anticipated NCX-470 launch in H224, we do not expect Nicox to require additional capital as its royalty streams plus NCX-470 sales should enable it to start achieving consistent positive operating income starting in FY25.

Exhibit 1: Nicox rNPV assumptions

Product contribution

Indication

Stage

NPV
(€m)

Probability of success

rNPV
(€m)

rNPV/
share (€)

Launch year

Peak sales (€m) in 2030

NCX-470 (net of R&D and SG&A costs) in US market

Glaucoma

Phase III ongoing

397.8

50%

191.8

5.17

2024

312

NCX-470 (net of R&D and SG&A costs) in Europe and unpartnered regions

Glaucoma

Phase III

192.8

35%

62.7

1.69

2026

159

NCX-470 licence fees from Ocumension (China and other)

Glaucoma

Phase III ongoing

9.3

50%

4.5

0.12

2024

2.8*

NCX-4251 (net of R&D and SG&A costs) sales and licence fees/royalties

Acute blepharitis

Phase IIb ongoing

45.1

30%

9.7

0.26

2025

44.2

Vyzulta royalties from Bausch & Lomb

Glaucoma

Commercial

94.3

100%

94.3

2.54

2017

18.4*

Zerviate royalties from Eyevance and others

Allergic conjunctivitis

Commercial

20.5

100%

20.5

0.55

2020

5*

Corporate costs

(65.7)

100%

(65.7)

(1.77)

Total

694.2

317.7

8.56

Net cash (H121) excluding lease liabilities

18.5

18.5

0.50

Total equity value

712.7

336.3

9.06

FD shares outstanding (000) (31 August 2021)

37,125

Source: Edison Investment Research. Note: *Reflects net licence and royalties received by Nicox but not commercial sales by licensee.

While our rNPV valuation for NCX-4251 has decreased (also due to the reduced probability of success to 30%), the overall effect on our total Nicox valuation is relatively limited given that NCX-470 accounts for c 80% of our total rNPV.

Altogether, we now obtain an rNPV of €317.7m, down from €325.0m previously. After adding €18.5m in H121 net cash, we obtain an equity value of €336.3m, or €9.06 per share.

Exhibit 2: Financial summary

€’000s

2018

2019

2020

2021e

2022e

2023e

2024e

31-December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

4,717

8,260

14,423

8,852

11,959

17,493

23,244

Cost of Sales

(690)

(1,405)

(1,516)

(1,586)

(2,407)

(4,859)

(5,930)

Gross Profit

4,027

6,855

12,907

7,266

9,552

12,635

17,314

General & Administrative

(9,506)

(7,666)

(6,677)

(6,837)

(7,097)

(10,432)

(23,063)

Net Research & Development

(15,491)

(16,883)

(11,991)

(16,700)

(17,350)

(12,350)

(7,350)

Amortisation of intangible assets

0

(659)

(1,252)

(1,162)

(1,141)

(1,121)

(1,101)

Operating profit before exceptionals

(20,970)

(18,353)

(7,013)

(17,432)

(16,036)

(11,267)

(14,200)

EBITDA

 

 

(20,718)

(17,230)

(5,270)

(15,917)

(14,544)

(9,808)

(12,727)

Depreciation & other

(252)

(464)

(491)

(354)

(351)

(339)

(372)

Operating Profit (before amort. and except.)

(20,970)

(17,694)

(5,761)

(16,270)

(14,895)

(10,147)

(13,099)

Exceptionals including asset impairment

302

(6,115)

(6,621)

0

0

0

0

Other

0

0

0

0

0

0

0

Operating Profit

(20,668)

(23,809)

(12,382)

(16,270)

(14,895)

(10,147)

(13,099)

Net Interest

2,390

1,690

(4,436)

(901)

(1,170)

(2,151)

(3,070)

Profit Before Tax (norm)

 

 

(18,580)

(16,004)

(10,197)

(17,171)

(16,065)

(12,298)

(16,169)

Profit Before Tax (FRS 3)

 

 

(18,278)

(22,778)

(18,070)

(18,333)

(17,206)

(13,418)

(17,269)

Tax

(113)

3,856

(28)

0

0

0

0

Profit After Tax and minority interests (norm)

(18,693)

(12,148)

(10,225)

(17,171)

(16,065)

(12,298)

(16,169)

Profit After Tax and minority interests (FRS 3)

(18,391)

(18,922)

(18,098)

(18,333)

(17,206)

(13,418)

(17,269)

Average Number of Shares Outstanding (m)

29.6

30.3

33.7

37.2

37.4

37.5

37.7

EPS - normalised (€)

 

 

(0.63)

(0.40)

(0.30)

(0.46)

(0.43)

(0.33)

(0.43)

EPS - normalised and fully diluted (€)

 

(0.63)

(0.40)

(0.30)

(0.46)

(0.43)

(0.33)

(0.43)

EPS - (IFRS) (€)

 

 

(0.62)

(0.62)

(0.54)

(0.49)

(0.46)

(0.36)

(0.46)

Dividend per share (€)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

BALANCE SHEET

Fixed Assets

 

 

112,498

110,660

89,745

88,587

87,423

86,401

85,509

Intangible Assets

71,397

72,120

64,848

63,686

62,545

61,424

60,323

Tangible Assets

25,628

27,517

24,829

24,833

24,810

24,909

25,118

Investments in long-term financial assets

15,473

11,023

68

68

68

68

68

Current Assets

 

 

26,092

32,146

52,521

36,106

26,118

26,978

28,446

Short-term investments

0

0

0

0

0

0

0

Cash

22,059

28,102

47,195

29,030

18,593

16,325

17,171

Other

4,033

4,044

5,326

7,075

7,525

10,653

11,275

Current Liabilities

 

 

(8,069)

(9,828)

(15,405)

(15,505)

(12,586)

(15,156)

(12,301)

Creditors

(8,069)

(7,751)

(10,116)

(10,216)

(7,297)

(9,867)

(7,012)

Short term borrowings

0

(2,077)

(5,289)

(5,289)

(5,289)

(5,289)

(5,289)

Long Term Liabilities

 

 

(16,868)

(23,681)

(26,051)

(26,051)

(34,351)

(44,351)

(64,351)

Long term borrowings

0

(9,045)

(12,687)

(12,687)

(22,687)

(32,687)

(52,687)

Other long-term liabilities

(16,868)

(14,636)

(13,364)

(13,364)

(11,664)

(11,664)

(11,664)

Net Assets

 

 

113,653

109,297

100,810

83,137

66,604

53,872

37,303

CASH FLOW

Operating Cash Flow

 

 

(21,533)

(17,741)

(956)

(16,906)

(18,939)

(9,680)

(15,504)

Net interest and financing income (expense)

2,390

1,690

(4,436)

(901)

(1,170)

(2,151)

(3,070)

Tax

0

0

0

0

0

0

0

Capex

(268)

(95)

(20)

(358)

(328)

(437)

(581)

Acquisitions/disposals

0

0

0

0

0

0

0

Financing

0

11,290

13,321

0

0

0

0

Dividends

0

0

0

0

0

0

0

Net Cash Flow

(19,411)

(4,856)

7,909

(18,165)

(20,437)

(12,268)

(19,154)

Opening net debt/(cash)

 

 

0

(37,532)

(28,003)

(29,287)

(11,122)

9,315

21,583

HP finance leases initiated

0

0

0

0

0

0

0

Other

56,943

(4,673)

(6,625)

0

0

0

0

Closing net debt/(cash)

 

 

(37,532)

(28,003)

(29,287)

(11,122)

9,315

21,583

40,737

Lease debt

N/A

1,527

1,099

1,099

1,099

1,099

1,099

Closing net debt/(cash) inclusive of IFRS 16 lease debt

(37,532)

(26,476)

(28,188)

(10,023)

10,414

22,682

41,836

Source: Company reports, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Nicox and prepared and issued by Edison, in consideration of a fee payable by Nicox. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 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.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Nicox and prepared and issued by Edison, in consideration of a fee payable by Nicox. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 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.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on Nicox

View All

Latest from the Healthcare sector

View All Healthcare content

Research: Energy & Resources

Egdon Resources — Wressle exceeds expectations

The Wressle-1 well has delivered above management’s expectation, producing at 884bod with a further c 80boed of gas. With a 30% working interest in Wressle, Egdon has achieved a significantly higher 289boed net versus its target of 150bod, with the full potential of the well yet to be tested. Further onshore drilling remains dependent on successful farm-outs, while offshore, the 3D seismic surveys on the Shell operated Resolution and Endeavour discoveries will now be delayed beyond the previously rescheduled February 2022 date. Egdon has also made progress with its geothermal projects, having identified the Dukes Wood-1 oil well for recompletion for geothermal heat production.

Continue Reading

Subscribe to Edison

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

Sign up for free