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Edison Healthcare Insight

July 2020

Published by Edison Investment Research

The Edison healthcare team www.edisongroup.com

Maxim Jacobs Dr Nathaniel Calloway

Max joined Edison’s healthcare team in December 2014. Prior to this he worked as a senior analyst at Guidepoint Global. Max has also previously worked as a senior analyst at Ridgemark Capital, a sector head at Broadfin Capital and as a senior analyst at Mehta Partners. He is a CFA charter holder.

Nathaniel Calloway joined the healthcare team in December 2015. Before Edison, he performed healthcare investment research for a fund at Bishop Rosen and for Wainscott Capital Partners. Prior to his role as an analyst he performed molecular neuroscience research at Cornell Medical School and holds a PhD in chemistry from Cornell. He has published eight scientific papers on topics ranging from physical chemistry to immunology, and he has been recognised as an American Heart Association fellow and an American Chemical Society Medicinal Chemistry fellow.

Pooya Hemami Dr John Savin

Pooya is a licensed optometrist with over five years of experience in life sciences equity research. Prior to joining Edison, he covered the Canadian healthcare sector as a research analyst at Desjardins Capital Markets. He holds a doctor of optometry degree from the University of Montreal, and an MBA (finance concentration) from McGill University. He received his CFA charter in 2011.

John is an analyst working on biotech, pharma, medical device and diagnostics companies. As founder CEO of Physiomics, he devised the strategy, raised funds and took the company to AIM in 2004. At Greig Middleton, John was director in charge of the pharma and biotech analyst team and worked with corporate finance on fund-raising, IPOs and corporate restructuring. He has an industry background in sales and marketing with GE Healthcare and AstraZeneca and is a co-author on a number of scientific publications.

Dr Susie Jana Dr Jonas Peciulis

Susie joined the team in September 2015 and has 16 years’ experience in the healthcare sector. She is a qualified medical doctor, having studied medicine at UCL. She also holds an intercalated BSc in psychology. After a few years working as a junior doctor in the NHS, Susie joined the investment banking industry for six years on the sell-side covering biotechnology stocks, then mid- to large-cap pharmaceuticals at Société Générale. Most recently she worked as a buy-side analyst, covering European biotech, pharma and medtech stocks at F&C Investments for five years.

Jonas joined Edison in November 2015. He is a qualified medical doctor with several years of clinical practice. He then moved into equity research as a healthcare analyst at Norne Securities, focused on Norwegian companies, and received two StarMine awards for stock picking in 2013. Most recently, he worked for a London-based life sciences venture capital company before completing his MBA degree.

Contents

Company profiles 3

Company coverage 27

Prices at 10 July 2020 Published 16 July 2020

Welcome to the July edition of the Edison Healthcare Insight. In this edition we have profiled 48 of our

healthcare companies under coverage.

Readers wishing more detail should visit our website, where reports are freely available for download

(www.edisongroup.com). All profit and earnings figures shown are normalised, excluding amortisation of

acquired intangibles, exceptional items and share-based payments.

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle

East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-

sector expertise. At Edison Investment Research, our research is widely read by international investors,

advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated

services including investor relations and strategic consulting.

We welcome any comments/suggestions our readers may have.

Neil Shah & Maxim Jacobs

Healthcare Research

http://www.edisongroup.com/

mailto:[email protected]

Edison Healthcare Insight | 16 July 2020 2

Company profiles

Prices at 10 July

US$/£ exchange rate: 0.8013

€/£ exchange rate: 0.9019

C$/£ exchange rate: 0.5894

A$/£ exchange rate: 0.5532

NZ$/£ exchange rate: 0.5193

SEK/£ exchange rate: 0.0860

DKK/£ exchange rate: 0.1210

NOK/£ exchange rate: 0.0838

JPY/£ exchange rate: 0.0075

CHF/£ exchange rate: 0.8465

PLN/£ exchange rate: 0.2021

Sector: Pharma & healthcare

Price: SEK1.01Market cap: SEK273mMarket NASDAQ OTCQX

Share price graph (SEK)

Company descriptionAbliva (formerly NeuroVive) is aSwedish biopharmaceutical company.Its main focus area is PMDs with leadassets KL1333, a NAD+ modulator(Phase I), and NV354, a succinateprodrug (preclinical). NeuroSTAT is anon-core asset in Phase II forneurotrauma.

Price performance% 1m 3m 12mActual (12.8) 34.9 (16.5)Relative* (14.5) 16.0 (22.7)* % Relative to local indexAnalystDr Jonas Peciulis

Abliva (ABLI)

INVESTMENT SUMMARY

Abliva (formerly NeuroVive) is focused on primary mitochondrial diseases (PMD). The coreportfolio consists of KL1333 and NV354. KL1333, a small molecule NAD+ modulator usedto restore intracellular energy balance, is being developed for PMD, for example due to anm.3243 A>G mutation (eg MELAS, MIDD, PEO). Abliva started a Phase Ia/b study in March2019 and the first two parts (SAD and MAD) were successfully completed. The third andfinal part of the study will include patients with PMD. NV354 is the second lead drugcandidate in Abliva’s core portfolio, a succinate prodrug targeting complex I deficiency, suchas Leigh syndrome and LHON. The mechanism of action is different to KL1333, but has thesame goal of increasing the production of cellular energy. IND-enabling studies are ongoingand the Phase I study could start in 2021. In H120, Abliva raised in total SEK87m via arights issue and a private placement.

INDUSTRY OUTLOOK

Abliva has a diversified portfolio, with all assets aimed at improving mitochondrialmetabolism and function. We feel this puts NeuroVive among the very few experts inmitochondrial medicine.

Y/E Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(SEKm) (SEKm) (SEKm) (öre) (x) (x)

2018 2.5 (66.7) (68.8) (94.07) N/A N/A

2019 3.6 (72.3) (74.6) (43.50) N/A N/A

2020e 3.6 (78.6) (81.0) (33.59) N/A N/A

2021e 3.6 (79.9) (82.3) (27.79) N/A N/A


Price: €2.83Market cap: €192mMarket Euronext Brussels

Share price graph (€)

Company descriptionAcacia Pharma is a commercial-stagebiopharmaceutical companydeveloping and commercialising novelproducts to improve the care ofpatients undergoing serious medicaltreatments such as surgery, invasiveprocedures or chemotherapy.BARHEMSYS is approved for PONV inthe US and in-licensed asset BYFAVOis approved for PS. Price performance% 1m 3m 12mActual (11.4) 14.1 27.4Relative* (11.4) 2.5 32.9* % Relative to local indexAnalystDr Susie Jana

Acacia Pharma (ACPH)

INVESTMENT SUMMARY

Acacia Pharma is focused on bringing antiemetic drugs to the US hospital setting for unmetneeds in post-operative nausea and vomiting (PONV) and chemotherapy-induced nauseaand vomiting. Its lead product, BARHEMSYS (reformulated amisulpride for the managementof PONV), received FDA approval with a broad label in February 2020. Under the deal withCosmo Pharmaceuticals, Acacia acquired the US rights to sedative BYFAVO(remimazolam), which received FDA approval for procedural sedation (PS) in July 2020.Acacia plans to launch both BARHEMSYS and BYFAVO in H220 and has been building upits US commercial operations in preparation. At 31 December 2019, Acacia had net cash of$7m. Cosmo’s equity investment of €20m plus access to a €25m loan facility followingBYFAVO approval enables Acacia to expand its US commercial infrastructure to supportboth product launches.

INDUSTRY OUTLOOK

Inadequately treated PONV leads to prolonged stays in post-anaesthesia care unit recoveryrooms. Use of BARHEMSYS could reduce patient hospitalisation time and the associatedcosts. Likewise, BYFAVO can reduce the time required for invasive medical procedures,enabling increased patient throughput for hospitals and surgical centres.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(US$m) (US$m) (US$m) (c) (x) (x)

2018 0.0 (20.0) (21.6) (45.0) N/A N/A

2019 0.0 (22.4) (23.5) (37.0) N/A N/A

2020e 2.1 (32.1) (34.3) (50.0) N/A N/A

2021e 28.8 (38.0) (40.2) (58.0) N/A N/A

3Edison Healthcare Insight | 16 July 2020


Price: A$0.03Market cap: A$28mMarket ASX

Share price graph (A$)

Company descriptionActinogen Medical is an ASX-listedAustralian biotech developing leadasset Xanamem, a specific11beta-HSD1 inhibitor designed totreat cognitive impairment that occursin chronic neurological and metabolicdiseases.

Price performance% 1m 3m 12mActual (10.7) 25.0 127.3Relative* (7.3) 12.6 155.2* % Relative to local indexAnalystDr Jonas Peciulis

Actinogen Medical (ACW)

INVESTMENT SUMMARY

In late 2019, Actinogen announced results from its Phase I XanaHES trial (Xanamem 20mgdaily in healthy elderly subjects). This trial was designed to assess the safety of high dosesof Xanamem but in addition to standard safety endpoints, Actinogen included exploratoryendpoints to assess the effect on cognition. A positive surprise was the finding that three ofsix domains in Cogstate Cognitive Test Battery showed an improvement in cognition. Thisfollowed results from the Phase II XanADu trial in AD patients announced in May 2019. Thesafety of the drug was confirmed and the data showed Xanamem was pharmacologicallyactive. However, the 10mg dose of Xanamem (half that used in the XanaHES trial) was noteffective in the efficacy endpoints. Following the positive XanaHES results, Actinogenindicated that it will analyse the data and make a decision on future steps once all analysesare complete and results from other supporting trials are available.

INDUSTRY OUTLOOK

The unmet need in Alzheimer's disease is vast and the size of the market has attractedinterest from almost every player in CNS drug R&D over the past 30 years with very limitedsuccess so far. With so many late-stage failures, we believe that ‘non-mainstream’technologies, such as Xanamem, may attract renewed interest from potential partners.

Y/E Jun Revenue EBITDA PBT EPS P/E P/CF(A$m) (A$m) (A$m) (c) (x) (x)

2018 3.3 (6.0) (5.9) (0.8) N/A N/A

2019 5.1 (9.5) (9.4) (0.9) N/A N/A

2020e 3.0 (7.5) (7.5) (0.7) N/A N/A

2021e 3.0 (12.7) (12.7) (1.1) N/A N/A


Price: €0.92Market cap: €36mMarket MAB


Company descriptionBased in Spain, ADL BionaturSolutions provides contractmanufacturing of fermentation-basedbiochem products and antibiotics. Italso develops and licenses its ownportfolio of OTC and prescriptionanimal health products, includingprobiotics and vaccines.

Price performance% 1m 3m 12mActual (24.0) (30.3) (57.0)Relative* (20.4) (32.7) (45.7)* % Relative to local indexAnalystPooya Hemami

ADL Bionatur Solutions (ADL.)

INVESTMENT SUMMARY

ADL Bionatur Solutions provides contract manufacturing (CMO) of fermentation-basedproducts and services focused on the health, beauty and wellness sectors. It hasestablished CMO/active pharmaceutical ingredient business lines and its own developmentline of innovative products. ADL-BS has 2,400m3 of total fermentation capacity availableand recently reported 2019 results of €45m in revenue and positive adjusted EBITDA.

INDUSTRY OUTLOOK

We estimate that ADL’s solid pipeline of CMO contracts will contribute to sustainablelong-term growth, although 2020 results may be affected by COVID-19. We calculate ADLyear-end 2019 net debt of approximately €66.5m, including an €8.7m loan from its majorityshareholder, BTC. The company is seeking to refinance €25m of its debt (which is held byKartesia), and it may shortly receive a €10m cash injection from BTC and potentialco-investors.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(€m) (€m) (€m) (c) (x) (x)

2017 12.8 (10.4) (12.7) (251.65) N/A N/A

2018 25.3 (12.5) (16.3) (43.16) N/A N/A

2019e 53.0 3.8 (1.6) (4.06) N/A N/A

2020e 71.6 10.5 4.2 10.76 8.6 4.2



Price: NZ$4.22Market cap: NZ$438mMarket NZSX

Share price graph (NZ$)

Company descriptionAFT Pharmaceuticals is a specialtypharmaceutical company that operatesprimarily in Australasia but has productdistribution agreements across theglobe. The company’s product portfolioincludes prescription andover-the-counter drugs to treat a rangeof conditions and a proprietarynebuliser.Price performance% 1m 3m 12mActual (10.2) (8.1) 37.5Relative* (11.1) (19.4) 32.3* % Relative to local indexAnalystMaxim Jacobs

AFT Pharmaceuticals (AFT)

INVESTMENT SUMMARY

AFT Pharmaceuticals is a profitable New Zealand-based specialty pharmaceutical companythat sells 130 prescription specialty generics and OTC products through its own sales forcein New Zealand, Australia and South-East Asia, and has been expanding its geographicfootprint. AFT Pharmaceuticals recently reported its FY20 results. Operating revenue grewby a strong 24.0% year-on-year to NZ$105.6m as there was at least double-digit growthacross all regional segments and triple-digit growth in South-East Asia. Importantly, thecompany reported operating profit of NZ$21.2m (including a NZ$9.8m non-recurring gain),up from a reported NZ$6.1m the year before, and is guiding for operating profit ofNZ$14–18m in FY21.

INDUSTRY OUTLOOK

AFT is a multi-product company targeting pharmacy prescription, OTC and hospitalmarkets. Data for Maxigesic offer it a competitive advantage in a fragmented industry.

Y/E Mar Revenue EBITDA PBT EPS P/E P/CF(NZ$m) (NZ$m) (NZ$m) (c) (x) (x)

2019 85.1 5.8 (2.5) (2.70) N/A 42.7

2020 105.6 10.3 2.8 2.69 156.9 18.7

2021e 125.1 18.2 15.5 15.40 27.4 22.1

2022e 146.5 29.5 27.2 23.23 18.2 13.6


Price: €0.17Market cap: €4mMarket Euronext Brussels


Company descriptionASIT biotech is a clinical-stagecompany focused on developingtherapies for allergies. It uses itsproprietary ASIT+ technology platformto develop products containing highlypurified allergen fragments in anadjuvant-free formulation, selected tobe safe while maintaining the capacityto stimulate immune tolerance.Price performance% 1m 3m 12mActual (23.3) (22.6) (84.9)Relative* (23.3) (30.5) (84.3)* % Relative to local indexAnalystDr John Savin

ASIT biotech (ASIT)

INVESTMENT SUMMARY

Management is exploring strategic options. On 9 June, shareholders voted to extend theperiod of judicial reorganisation by four months. Cash in December was €3.7m.

INDUSTRY OUTLOOK

ASIT+ technology aims to reduce the cellular response to antigen and induce blockingantibodies without generating an immediate allergic response. Reported gp-ASIT+ Phase IIIallergy data showed a statistically proven but inadequate clinical response.


2017 0.0 (12.0) (12.0) (93.6) N/A N/A

2018 0.0 (12.8) (14.3) (85.7) N/A N/A

2019e N/A N/A N/A N/A N/A N/A

2020e N/A N/A N/A N/A N/A N/A



Price: US$0.90Market cap: US$4mMarket NASDAQ

Share price graph (US$)

Company descriptionAuris Medical is a Swissbiopharmaceutical companydeveloping neurotology and CNStherapeutics. It is developing intranasalbetahistine for vertigo and mentaldisorder supportive care.

Price performance% 1m 3m 12mActual (13.5) 8.5 (66.8)Relative* 13.3 (5.0) (68.8)* % Relative to local indexAnalystMaxim Jacobs

Auris Medical Holding (EARS)

INVESTMENT SUMMARY

Auris Medical is a biopharmaceutical company developing pharmacotherapies for inner earand CNS disorders. Its primary focus is on the development of AM-125 (intranasalbetahistine) for the treatment of acute vertigo. Oral betahistine has been prescribed inEurope for decades for all types of vertigo, with an average 26% market share, but is notavailable in the US. Auris has initiated its Phase II clinical trial in 118 patients with surgicallyinduced acute vertigo. Enrolment has been affected by the coronavirus pandemic but thecompany expects interim data to become available in Q320. It is also developing AM-201,an intranasal betahistine formulation, for co-administration with olanzapine to counteractadverse effects, especially weight gain. Data from a Phase Ib has shown a statisticallysignificant reduction in weight gain at the 30mg dose.

INDUSTRY OUTLOOK

Acute vertigo/dizziness is one of the most common causes of visits to A&E with roughly2.6m visits associated with the condition each year.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(CHFm) (CHFm) (CHFm) (CHFc) (x) (x)

2018 0.0 (11.0) (12.0) (1532.81) N/A N/A

2019 0.0 (7.3) (7.3) (243.24) N/A N/A

2020e 0.0 (10.2) (10.9) (247.30) N/A N/A

2021e 0.0 (16.3) (17.7) (387.68) N/A N/A


Price: CHF51.50Market cap: CHF614mMarket Swiss Stock Exchange

Share price graph (CHF)

Company descriptionBasilea is focused on oncology andinfectious diseases. Its marketedproducts are Cresemba (an antifungal)and Zevtera (an anti-MRSAbroad-spectrum antibiotic). Theoncology R&D pipeline consists ofmultiple assets including clinical-stageproducts, lisavanbulin andderazantinib.Price performance% 1m 3m 12mActual 2.7 9.1 35.6Relative* 1.9 0.8 31.7* % Relative to local indexAnalystDr Susie Jana

Basilea Pharmaceutica (BSLN)

INVESTMENT SUMMARY

Basilea has two approved hospital-based products: Cresemba (severe mould infections)and Zevtera (bacterial infections). Multiple licensing/distribution agreements are in place forCresemba and Zevtera and should drive top-line growth, including with Pfizer and Astellas,which market Cresemba in Europe (ex Nordics) and the US, respectively. In August 2019,Basilea reported positive top-line data for Zevtera in the first cross-supportive Phase IIIstudy TARGET; top-line data from the ERADICATE study are expected in H221 and bothare required for a US FDA submission. Basilea's oncology pipeline is spearheaded byderazantinib (FGFR inhibitor), which is in a Phase II potential registration study forintrahepatic cholangiocarcinoma and a Phase I/II study in patients with advanced urothelialcancer.

INDUSTRY OUTLOOK

There is an ever-increasing need for therapeutic agents that are efficacious againstdrug-resistant strains of bacteria (eg MRSA), fungus or cancer. Hence, the opportunities forZevtera, Cresemba and Basilea's oncology pipeline could be significant.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(CHFm) (CHFm) (CHFm) (CHFc) (x) (x)

2018 132.6 (22.3) (31.0) (288.15) N/A N/A

2019 134.4 (15.6) (22.2) (207.16) N/A N/A

2020e 134.4 (19.0) (26.8) (249.40) N/A N/A

2021e 151.6 3.6 (4.4) (41.34) N/A 77.5



Price: C$0.38Market cap: C$26mMarket TSX-V

Share price graph (C$)

Company descriptionBioasis Technologies is a biopharmacompany developing the xB3 platformto aid in the delivery of molecules tothe brain using receptor mediatedtranscytosis. The company’s leadprogram is xB3-001, which is inpreclinical development for brainmetastases in HER2+ metastaticbreast cancer patients. Price performance% 1m 3m 12mActual 137.5 153.3 43.4Relative* 137.3 128.4 51.2* % Relative to local indexAnalystDr Nathaniel Calloway

Bioasis Technologies (BTI)

INVESTMENT SUMMARY

Bioasis has developed a platform for developing drugs that can pass the blood-brain barrier(BBB) that can be used on small molecules, antibodies, and enzymes. The company haslicensed this platform to Prothena and Chiesi as well as advancing its internal developmentproject xB3-001 for the treatment of beast cancer brain metatheses.

INDUSTRY OUTLOOK

Developing a drug to pass the BBB has historically been difficult and limited to smallmolecules. By developing a modular platform to solve this problem Bioasis is expanding thepotential diseases than can be targeted as well as providing a means to re-purposepreviously developed drugs to target the brain.

Y/E Feb Revenue EBITDA PBT EPS P/E P/CF(C$m) (C$m) (C$m) (c) (x) (x)

2019 1.4 (3.8) (2.4) (4.0) N/A N/A

2020 0.6 (4.0) (3.4) (6.0) N/A N/A

2021e 4.6 (6.5) (6.5) (9.0) N/A N/A

2022e 4.6 (8.7) (8.7) (12.0) N/A N/A


Price: DKK2.68Market cap: DKK536mMarket NASDAQ OMX (CPH)

Share price graph (DKK)

Company descriptionBioPorto Diagnostics is a diagnosticcompany focused on the developmentand commercialisation ofbiomarker-based assays. Thecompany’s portfolio includes TheNGAL Test, for prediction of acutekidney injury, and an extensiveantibody library.

Price performance% 1m 3m 12mActual 1.1 (8.5) (29.4)Relative* (2.3) (22.9) (43.2)* % Relative to local indexAnalystDr Nathaniel Calloway

BioPorto Diagnostics (BIOPOR)

INVESTMENT SUMMARY

BioPorto's lead strategic goal is development of a test for acute kidney injury (AKI) using thebiomarker NGAL. The company is gathering more data for its pediatric urine NGAL 510(k)and expects to submit in H220. For adults using plasma NGAL, the pivotal clinical trial isbeing completed with the 510(k) to be submitted to the FDA after the submission forpediatric. The NGAL Test is commercially available for research purposes in the US andhas been CE marked in Europe. BioPorto also sells a series of other antibodies, ELISA kitsand related biologics.

INDUSTRY OUTLOOK

The current standard of care for detecting AKI is serum creatinine, which can take 24 hoursor more to detect AKI and can only do so after significant kidney damage. NGAL promisesto provide a quicker and more reliable test, allowing early intervention to preserve kidneyfunction.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(DKKm) (DKKm) (DKKm) (ore) (x) (x)

2018 26.0 (42.1) (42.5) (24.34) N/A N/A

2019 26.6 (68.3) (71.1) (39.16) N/A N/A

2020e 27.0 (60.1) (63.4) (31.03) N/A N/A

2021e 101.2 (8.3) (9.7) (4.54) N/A N/A



Price: SEK3.87Market cap: SEK770mMarket NASDAQ OMX First North


Company descriptionBrighter is a Swedish healthtechcompany addressing common welfarechallenges of modern society througha group of innovation companies. Itslead solution, Actiste, currently beingcommercialised, is aimed at helpingpeople with diabetes adhere to careguidelines and achieve treatmentgoals.Price performance% 1m 3m 12mActual (19.9) 8.3 (39.7)Relative* (21.5) (6.9) (44.2)* % Relative to local indexAnalystMaxim Jacobs

Brighter (BRIG)

INVESTMENT SUMMARY

Brighter is a healthtech company developing solutions for chronic diseases. Its initialstrategy is the market introduction of Actiste, a remote monitoring and treatment service fordiabetes which recently received two CE marks (Actiste is regulated under both the EUMedical Devices Directive and the In Vitro Diagnostics Directive). The service includes aunique patented device that integrates all the essential features for daily diabetesmanagement, a blood glucose meter, a lancer and an insulin injection pen, into a single unitwith built-in mobile connection, and a digital platform for analysing and sharing data withfamily and friends, healthcare providers and other relevant stakeholders.

INDUSTRY OUTLOOK

In 2017, costs attributed to diagnosed diabetes and associated complications, such ascardiovascular disease and nephropathy, totalled $327bn in the US. Patient opinions oftreatment burden are heavily correlated with adherence to self-care.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(SEKm) (SEKm) (SEKm) (öre) (x) (x)

2018 1.1 (44.2) (48.8) (74.00) N/A N/A

2019 3.3 (73.7) (88.7) (105.85) N/A N/A

2020e 24.5 (115.8) (141.4) (71.00) N/A N/A

2021e 133.8 (29.6) (55.2) (27.44) N/A N/A




Company descriptionCantargia is a clinical-stagebiotechnology company listed on theNasdaq Stockholm main market. It isdeveloping CAN04 and CAN10 againstIL1RAP. CAN04 is in a Phase IIaclinical trial, CANFOUR, in solidtumours focused on NSCLC andPDAC. It is is preparing to file an INDand initiate a trial in the US next year.Price performance% 1m 3m 12mActual (2.7) 29.8 30.5Relative* (4.7) 11.6 20.9* % Relative to local indexAnalystDr Jonas Peciulis

Cantargia (CANT)

INVESTMENT SUMMARY

Cantargia is developing antibodies against IL1RAP. In December 2019, it reported interimdata from the ongoing three-arm Phase IIa study with CAN04 in combination with first-linechemotherapy in non-small cell lung cancer (NSCLC) and pancreatic cancer (PDAC). Fourout of seven evaluable PDAC patients achieved partial response and two out of threeevaluable NSLC patients achieved an objective response (one complete and one partial).The results compare favourably to historical response rates to standalone chemotherapyregimens (23% in PDAC; 22–28% in first-line NSCLC). The FDA has also approvedCantargia’s IND application for a Phase Ib trial in the US with CAN04 in combination with aCPI. Recently introduced CAN10 is a preclinical project in inflammation uniquely targetingthree interleukins, IL-1, IL-33 and IL-36. In February 2020, Cantargia raised SEK410m, animpressive amount of capital for a pure-play European biotech.

INDUSTRY OUTLOOK

Increasing the understanding of inflammation in malignant processes now includes findingsthat cytokines are not only produced by the immune cells, but that cancer itself can producecertain cytokines and the associated receptors to escape from the immune response.Therefore, cytokines represent a potentially promising class of targets in oncology.


2018 0.0 (93.3) (91.2) (137.73) N/A N/A

2019 0.0 (111.6) (110.8) (155.74) N/A N/A

2020e 0.0 (138.0) (138.0) (168.51) N/A N/A

2021e 0.0 (138.5) (138.5) (152.13) N/A N/A



Price: €18.50Market cap: €233mMarket Euronext Growth


Company descriptionCarmat is developing a biocompatible,artificial heart to satisfy the lack ofdonor hearts available for terminalheart failure patients. The developmentprocess combines the expertise of awide range of technical and medicalexperts.

Price performance% 1m 3m 12mActual (10.8) 8.8 0.1Relative* (9.3) (1.1) 12.1* % Relative to local indexAnalystMaxim Jacobs

Carmat (ALCAR)

INVESTMENT SUMMARY

Carmat is enrolling its 20-patient study for its artificial heart in France, Kazakhstan, theCzech Republic and Denmark. Data from the first cohort of 10 patients indicated that 70% ofthe patients within that cohort reached the primary endpoint of six-month survival with thebioprosthesis or a successful heart transplant within six months of the device implant. Inaddition, Carmat recently received FDA approval to begin an early feasibility study in the USin 10 transplant-eligible patients. The company expects to start enrolment in the trial inQ420.

INDUSTRY OUTLOOK

The Carmat artificial heart is being developed as a permanent replacement or destinationtherapy for chronic biventricular heart failure or acute myocardial infarction patients who donot have access to a human donor heart. Despite the high EU and US prevalence of stageIV heart failure (c 500,000 patients), the shortfall in donor hearts is such that only about3,800 human heart transplants were performed in Europe and the US in 2013.


2017 0.0 (30.3) (31.5) (323.54) N/A N/A

2018 0.7 (41.8) (43.7) (454.43) N/A N/A

2019e 0.7 (47.5) (49.5) (446.59) N/A N/A

2020e 7.5 (45.5) (49.0) (384.30) N/A N/A




Company descriptionCASI Pharmaceuticals is building aportfolio of drugs it intends to producefor Chinese and worldwide marketsincluding Evomela launched in China,an anti-CD19 CAR-T therapy CNCT19,and the anti-CD38 drug CID-103,among others. The goal is to seekapproval through new pathways thathave opened in the quickly changingChinese regulatory environment.Price performance% 1m 3m 12mActual (9.7) 18.9 (25.8)Relative* (9.5) 4.1 (30.3)* % Relative to local indexAnalystDr Nathaniel Calloway

CASI Pharmaceuticals (CASI)

INVESTMENT SUMMARY

CASI has a multipronged approach to the entrance into the Chinese pharmaceutical market.In August 2019 it launched Evomela (melphalan) in China via the priority review pathwaybecause it was the first approval in the country for any melphalan product. It is alsoexpanding its development pipeline through collaborations, with the recent licensing of ananti-CD38 drug (CID-103), anti-CD19 CAR-T therapy (CNCT19), and long-acting injectableoctreotide.

INDUSTRY OUTLOOK

The Chinese regulatory authorities have made a series of substantial changes to theirprocess for drug approval in recent years to improve the availability of new drugs. TheChinese National Medical Products Administration (NMPA, formerly the CFDA) hasestablished new classes of applications for drugs that are previously approved outside ofChina. Additionally, there is a set of criteria for priority review, which can significantly reducereview times.


2018 0.0 (19.4) (20.0) (23.65) N/A N/A

2019 4.1 (37.5) (36.5) (38.74) N/A N/A

2020e 10.0 (29.5) (29.7) (29.47) N/A N/A

2021e 17.5 (33.6) (34.6) (32.73) N/A N/A



Price: €0.75Market cap: €16mMarket Euronext Growth


Company descriptionDeinove is a biotechnology companythat discovers, develops and produceshigh value-added compounds using itsstate-of-the-art bacterial strainselection, banking, fermentation andscreening facilities. The most valuablecompounds in the pipeline are novelantimicrobials, with lead assetDNV3837 in a Phase II trial.Price performance% 1m 3m 12mActual (11.6) 4.2 (35.1)Relative* (10.1) (5.3) (27.4)* % Relative to local indexAnalystDr Jonas Peciulis

Deinove (ALDEI)

INVESTMENT SUMMARY

Deinove is running a Phase II study with the novel quinolonyl-oxazolidinone class antibioticDNV3837 for moderate to severe C. diff infections. This is an open-label study that will beconducted in two parts in 15 centres in the US. Part two of the study will be randomised inup to 30 patients and will include efficacy endpoints. The company also reported multipledevelopments in its bioactives portfolio. The most recent development was the launch ofLuminity, which is a concentrate of neurosporene, an extremely rare carotenoid thatcontributes to skin vitality and a beautiful complexion. As a metabolic intermediate of theformation of lycopene from phytoene, neurosporene is a carotenoid rarely found in nature,which is now commercially accessible and patent protected. Deinove confirmed Luminity’seffects in in vitro, ex vivo and clinical studies. The key catalysts this year are developmentand commercialisation news from Deinove’s bioactives portfolio and progress of the PhaseII trial.

INDUSTRY OUTLOOK

Environmentalism will underpin growth in green chemistry and growing antimicrobialresistance to current antibiotics will demand the discovery of new antibiotic structures.


2017 0.2 (8.5) (9.7) (67.69) N/A N/A

2018 0.8 (9.4) (10.5) (61.25) N/A N/A

2019e 1.1 (11.8) (13.2) (64.88) N/A N/A

2020e 2.9 (14.0) (15.4) (69.49) N/A N/A


Price: 475.0pMarket cap: £230mMarket AIM

Share price graph (p)

Company descriptionErgomed is a global full-service CRObusiness with a core focus on the USand EU. It provides Phase I–III clinicalservices in addition to post-marketingpharmacovigilance (Phase IV) servicesthrough its PrimeVigilance division.Ergomed is predominantly focused ononcology, orphan drugs or rarediseases and pharmacovigilance.Price performance% 1m 3m 12mActual 8.0 4.4 74.0Relative* 11.8 (0.1) 111.2* % Relative to local indexAnalystDr Jonas Peciulis

Ergomed (ERGO)

INVESTMENT SUMMARY

Ergomed is a specialist pharmaceutical services provider. We believe it should proverelatively resilient during the COVID-19 crisis and has the fundamentals in place to executeits growth strategy. Ergomed announced impressive audited numbers for FY19, withrevenue up 26% to £68.3m and EBITDA up 5.5x to £12.5m. The FY19 announcement waseffectively Ergomed’s fourth profit upgrade for FY19 and was a small beat on recently resetFY19 expectations. Ergomed’s strong organic growth is benefiting from a clear strategicfocus on high growth pharma sectors, margin control and order book growth (up 15% to£125m in FY19, giving 90% visibility to 2020).

INDUSTRY OUTLOOK

Innovation in healthcare is driving sales and growth in the number of clinical trials beinginitiated, as pharmaceutical and biotechnology companies continue to invest substantially.Tight operational control and execution will enable Ergomed to drive market share inhigh-growth orphan drug trials as well as in larger indications.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2018 54.1 2.3 1.0 1.9 250.0 236.4

2019 68.3 12.5 8.6 19.8 24.0 19.0

2020e 84.8 14.9 13.7 24.9 19.1 16.9

2021e 100.3 17.6 16.5 28.9 16.4 14.1





Company descriptionHepion Pharmaceuticals is a clinicalstage biopharmaceutical companyfocused on developing therapeutics forchronic liver disease. The company’slead asset is CRV431, a cyclophilininhibitor being developed for thetreatment of NASH.

Price performance% 1m 3m 12mActual 61.6 143.5 (9.0)Relative* 61.9 113.3 (14.5)* % Relative to local indexAnalystDr Nathaniel Calloway

Hepion Pharmaceuticals (HEPA)

INVESTMENT SUMMARY

CRV431 is a non-immunosuppressive cyclosporine derivative that inhibits a class ofproteins called cyclophilins. Cyclophilins have been implicated in liver disease specificallystemming from inflammation and fibrosis. Hepion claims that by inhibiting cyclophilins,CRV431 may stall or reverse the progressive deterioration of liver function seen in latestage non-alcoholic steatohepatitis (NASH) patients presenting with fibrosis.

INDUSTRY OUTLOOK

There currently are no approved medications for NASH, but a large number of programs indevelopment. Fatty liver disease affects 20% of US and European populations and 20% ofthese are expected to progress to NASH. We expect CRV431 to be marketed for severecases (F2 and F4), which we estimate has a market of 1.4 million in the US and Europe.


2018 0.0 (14.3) (9.8) (5587.00) N/A N/A

2019 0.0 (7.7) (7.9) (432.00) N/A N/A

2020e 0.0 (15.0) (15.0) (179.00) N/A N/A

2021e 0.0 (11.4) (11.4) (133.00) N/A N/A


Price: US$28.46Market cap: US$4045mMarket AIM, NASDAQ


Company descriptionHutchison China MediTech (HCM) isan innovative China-basedbiopharmaceutical company targetingthe global market for novel, highlyselective oral oncology andimmunology drugs. Its establishedcommercial platform businesscontinues to expand its outreach.

Price performance% 1m 3m 12mActual 23.2 55.6 27.6Relative* 23.3 36.3 19.9* % Relative to local indexAnalystDr Susie Jana

Hutchison China MediTech (HCM)

INVESTMENT SUMMARY

Hutchison China MediTech (HCM) has built a substantial pipeline of tyrosine kinase inhibitordrugs. The launch of Elunate (fruquintinib capsules) in China in 2018 serves as validation ofthe R&D efforts and its inclusion in China’s NRDL significantly increases the addressablemarket. Key late-stage asset surufatinib met the primary endpoint of PFS in non-pancreaticNET and pancreatic NET, translating into earlier than expected China NDA submissions forboth indications (epNET accepted in November, pNET to file H220). Surufatinib could beHCM’s first unpartnered asset to launch (late 2020). The US FDA has also granted two fasttrack designations for surufatinib in epNET and pNET (NDA to file in late 2020). We forecastfurther product launches in 2021/22; with China launch of savolitinib in MET exon 14deletion NSCLC and global launch of savolitinib in MET-positive Tagrisso refractory NSCLCin combination with Tagrisso; timing depends on interim data from the SAVANNAH trial.

INDUSTRY OUTLOOK

HCM’s profitable Chinese healthcare business continues to benefit from the fast-growingdomestic market, while the clinical, regulatory and technological environments are highlyconducive to novel drug development. In the longer term, as the oncology pipeline comes tofruition we expect HCM to become a major oncology company globally.


2018 214.1 (89.0) (86.7) (11.3) N/A N/A

2019 204.9 (141.3) (141.1) (15.9) N/A N/A

2020e 216.8 (194.5) (197.9) (23.0) N/A N/A

2021e 283.9 (196.9) (207.6) (24.2) N/A N/A



Price: SEK9.30Market cap: SEK858mMarket OMX


Company descriptionImmunicum is a clinical-stageimmuno-oncology company based inStockholm, Sweden. It is developingan allogeneic dendritic cell immuneprimer for use in combination withother anticancer therapies includingCPIs in multiple solid tumourindications.

Price performance% 1m 3m 12mActual (12.3) 26.8 (15.7)Relative* (14.0) 9.0 (21.9)* % Relative to local indexAnalystDr Jonas Peciulis

Immunicum (IMMU)

INVESTMENT SUMMARY

Immunicum’s updated results from the Phase II MERECA trial with ilixadencel delivered apositive surprise. The company was selected for an oral presentation at the ASCO-SITCClinical Immuno-Oncology Symposium in early February. The maturing data (24-monthfollow up) confirmed the separation of the Kaplan-Meier curves, which was projected inSeptember 2019 when the final MERECA results (18-month follow up) were released. Inaddition, Immunicum found that a stricter definition of tumour response, the confirmedobjective response rate (ORR vs best ORR), showed a clear difference between the activeand control arms (statistical analysis is not available). In May, the company received aRegenerative Medicine Advanced Therapy designation from the FDA.

INDUSTRY OUTLOOK

IO is a frenetic pharmaceutical development area with many clinical combination studiesbeing conducted by pharmaceutical and biotech companies. Investors should expectrelatively rich newsflow from this subsector over the next few years.


2018 0.0 (0.1) (97.9) (190.4) N/A N/A

2019 0.0 (0.1) (134.0) (149.4) N/A N/A

2020e 0.0 (0.1) (120.9) (131.0) N/A N/A

2021e 0.0 (0.1) (122.5) (132.8) N/A N/A


Price: C$7.03Market cap: C$37mMarket TSX

Share price graph (C$)

Company descriptionInMed is a pharmaceutical companyfocused on developing andmanufacturing cannabinoids. Its mainpipeline product is INM-755 forepidermolysis bullosa, a serious,debilitating orphan indication.

Price performance% 1m 3m 12mActual (31.3) 3.9 (38.3)Relative* (31.3) (6.3) (34.9)* % Relative to local indexAnalystMaxim Jacobs

InMed Pharmaceuticals (IN)

INVESTMENT SUMMARY

InMed is a pharmaceutical company focused on developing cannabinoid-basedmedications. It is developing a proprietary pipeline with the leading candidates both basedon cannabinol, a minor cannabinoid that has shown evidence of efficacy across indicationswhile having little to no psychoactivity. Its programmes include INM-755 for epidermolysisbullosa, a serious orphan indication. Clinical trials have begun and dosing in a secondhealthy volunteers trial began in July. The company is also developing INM-088 forglaucoma and is in preclinical studies. Additionally, through its biosynthesis platform, thecompany believes it may be able to produce minor cannabinoids at a lower cost and withimproved purity than current methods.

INDUSTRY OUTLOOK

The market for cannabinoids, whether FDA-approved, medical or recreational, is growing ata fantastic rate. Legal cannabis sales in the US alone were around US$7.5bn in 2017 andwe expect them to grow to US$28bn by 2023.

Y/E Jun Revenue EBITDA PBT EPS P/E P/CF(C$m) (C$m) (C$m) (c) (x) (x)

2018 0.0 (5.5) (5.3) (3.7) N/A N/A

2019 0.0 (9.7) (9.1) (5.3) N/A N/A

2020e 0.0 (14.4) (14.9) (8.6) N/A N/A

2021e 0.0 (14.9) (16.4) (9.1) N/A N/A



Price: US$0.78Market cap: US$6mMarket OTC


Company descriptionInternational Stem Cell is anearly-stage biotechnology companydeveloping therapeutic, biomedical andcosmeceutical applications for itsproprietary stem form of pluripotentstem cells – human parthenogeneticstem cells (hpSCs). Its lead candidateis a cell therapy treatment for PD.

Price performance% 1m 3m 12mActual (2.5) 66.0 (25.7)Relative* (2.3) 45.4 (30.2)* % Relative to local indexAnalystMaxim Jacobs

International Stem Cell (ISCO)

INVESTMENT SUMMARY

International Stem Cell (ISCO) is in Phase I/IIa clinical trials with its ISC-hpNSC therapy totreat Parkinson’s disease (PD). Full data from the 12-patient trial are expected by the end of2020. ISCO also has commercial operations to leverage its human parthenogenetic stemcell technology and generate revenues to partially offset R&D spending for therapeuticdevelopment. Lifeline Skin Care (LSC) develops and sells skincare products and LifelineCell Technology (LCT) produces human cell culture products for testing. The commercialoperations provided $1.3m in operating profits in 2019 that helped fund the rest of thebusiness.

INDUSTRY OUTLOOK

ISCO’s technology platform is based on human parthenogenetic stem cells.Parthenogenetic stem cells are created from unfertilised human eggs (oocytes) chemicallyactivated to make the cells pluripotent. As hpSCs express fewer parental histocompatibilityantigens, they reduce the risk of immune rejection.


2017 7.5 (4.6) (4.9) (118.86) N/A N/A

2018 11.1 (3.2) (3.5) (54.38) N/A N/A

2019e 9.9 (3.6) (4.1) (54.10) N/A N/A

2020e 10.7 (7.9) (9.3) (116.27) N/A N/A


Price: €3.06Market cap: €85mMarket Scale


Company descriptionMagForce has a European approvednanotechnology-based therapy to treatbrain cancer. NanoTherm consists of ananoparticle instillation into the tumour,activated by an alternating magneticfield, producing heat and thermallydestroying or sensitising the tumour.

Price performance% 1m 3m 12mActual (7.6) 17.2 (40.9)Relative* (8.3) (2.0) (42.1)* % Relative to local indexAnalystDr Susie Jana

MagForce (MF6)

INVESTMENT SUMMARY

MagForce is progressing its strategy to drive uptake and acceptance (in the US andEurope) of its nanoparticle-based therapy NanoTherm, for the treatment of canceroustumours. It has recently expanded from Germany into Poland and will have five centres inEurope that are commercially capable of treating glioblastoma patients by end-2020. A loanof up to €35m from the European Investment Bank and access to €15m growth funding viazero interest bearing convertible notes will continue to fund the roll-out. A registrationalclinical trial for prostate cancer is ongoing in the US using an FDA-approved one-dayprotocol that was established in Stage 1; approval and launch are expected in Q221. Theopportunity in the US will become a significant driver for growth in the long term.

INDUSTRY OUTLOOK

MagForce's NanoTherm therapy is designed to directly target cancerous tissue whilesparing surrounding healthy tissue. Magnetic nanoparticles are directly instilled into atumour or a resection cavity and activated by specialist equipment (NanoActivator). This caneither thermally ablate tumours or sensitise them to other treatments (chemotherapy orradiotherapy).


2017 0.7 (8.8) (9.5) (36.0) N/A N/A

2018 0.1 (7.1) (8.7) (32.8) N/A N/A

2019e 0.7 (9.6) (10.5) (38.7) N/A N/A

2020e 2.9 (5.3) (6.6) (23.7) N/A N/A





Company descriptionMesoblast is developing adultstem-cell therapies based on itsproprietary MPC and MSC platforms.Its lead programs are in pediatricaGvHD, heart failure and lower backpain. Approval is expected in the USfor Ryoncil for aGvHD in 2020.

Price performance% 1m 3m 12mActual (5.9) 46.8 139.9Relative* (2.3) 32.3 169.3* % Relative to local indexAnalystMaxim Jacobs

Mesoblast (MSB)

INVESTMENT SUMMARY

The potentially pivotal 55-paediatric patient acute graft vs host disease (GvHD) study met itsprimary endpoint, with a 69% overall response rate vs 45% for historical controls(p=0.0003). Survival at day 180 was 69% compared to historical rates of 10–30% in GradeC/D disease patients. The company submitted a BLA to the FDA in February 2020, whichwas accepted for priority review with a PDUFA date at the end of September. Importantly,Mesoblast has initiated a 300-patient randomized, controlled Phase III trial ofremestemcel-L in COVID-19 patients with moderate/severe acute respiratory distresssyndrome (ARDS) who are on ventilator support. There are three interim looks so data arelikely in H220. The company is also expecting Phase III data in heart failure and chronic lowback pain in mid-2020.

INDUSTRY OUTLOOK

Mesoblast is a leading mesenchymal stem cell company. It has a manufacturing alliancewith Lonza. JCR Pharmaceuticals markets Mesoblast’s GvHD therapy in Japan; FY19royalties were US$5.0m.

Y/E Jun Revenue EBITDA PBT EPS (fd) P/E P/CF(US$m) (US$m) (US$m) (c) (x) (x)

2018 17.0 (66.2) (68.6) (8.14) N/A N/A

2019 16.0 (75.4) (86.5) (15.69) N/A N/A

2020e 61.2 (32.0) (45.6) (6.92) N/A N/A

2021e 50.9 (35.1) (47.4) (8.12) N/A N/A


Price: CHF1.65Market cap: CHF29mMarket Swiss Stock Exchange

Share price graph (CHF)

Company descriptionNewron Pharmaceuticals is aCNS-focused company. Xadago forParkinson’s disease is sold in Europe,Japan and the US. Evenamide, a novelschizophrenia therapy, may startPhase III trials from 2021.

Price performance% 1m 3m 12mActual (8.2) (68.1) (72.9)Relative* (9.0) (70.5) (73.7)* % Relative to local indexAnalystDr John Savin

Newron Pharmaceuticals (NWRN)

INVESTMENT SUMMARY

Newron Pharmaceuticals has moved its focus onto its novel schizophrenia drug,evenamide. The clinical programme was due to resume but is on hold due to COVID-19.Phase III might start in mid-2021. In FY19, Xadago (Parkinson’s disease) generatedroyalties of €4.7m plus a €2.3m Japanese milestone. Newron had €39m in cash inDecember 2019 and drew a €7.5m EIB loan in April leaving a €15m loan facility. It has cashto last through 2021. The H120 report is due on 15 September.

INDUSTRY OUTLOOK

Xadago is approved and marketed in key territories as an add-on to levodopa therapy inParkinson's disease. A trial in dyskinesia is planned to expand the indication; this will befunded to €10m by Newron. In the US, Xadago will now be sold by SupernusPharmaceuticals after US WorldMeds (the Zambon sublicensee) divested its CNS portfolio.This should benefit Newron since Supermus will have a five-fold larger sales team. Theformer lead product, sarizotan, has ceased development after poor Phase III results.


2018 4.0 (14.9) (15.0) (84.20) N/A N/A

2019 7.0 (20.7) (20.2) (113.24) N/A N/A

2020e 5.6 (13.8) (14.5) (81.09) N/A N/A

2021e 6.7 (19.6) (20.2) (113.13) N/A N/A





Company descriptionOncology Venture is abiopharmaceutical company with apatent-protected mRNA-based drugresponse predictor platform thatidentifies patients highly likely torespond to treatment. The company isadvancing the PARP inhibitor 2X-121,the TKI dovitinib and microtubuleinhibitor Ixempra.Price performance% 1m 3m 12mActual (12.9) 17.7 (60.1)Relative* (14.6) 1.2 (63.1)* % Relative to local indexAnalystDr Nathaniel Calloway

Oncology Venture (OV.ST)

INVESTMENT SUMMARY

Oncology Venture holds the worldwide drug development rights to the drug responsepredictor (DRP), a microarray technology that examines the expression of a panel of genesto identify potential responders to different cancer therapies. Oncology Venture's goal is tothen develop its portfolio of drugs that are active within populations that the DRP canidentify. The company recently focused its strategy on three lead assets: the TKI dovitinib,the PARP inhibitor 2X-121 and the microtubule inhibitor agent Ixempra.

INDUSTRY OUTLOOK

Oncology Venture and the DRP system have the potential to identify the value in drugassets that have otherwise been discontinued by identifying patient populations where thesedrugs are active. This allows the company to in-license these assets at low cost; it may thenout-license them after clinical validation.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(DKKm) (DKKm) (DKKm) (ore) (x) (x)

2018 2.1 (32.3) (22.5) (44.00) N/A N/A

2019 0.8 (66.5) (174.9) (208.11) N/A N/A

2020e 0.9 (123.6) (124.4) (75.00) N/A N/A

2021e 0.9 (258.7) (260.1) (158.00) N/A N/A


Price: €0.69Market cap: €54mMarket Euronext Paris


Company descriptionOnxeo's lead compound, AsiDNA, is afirst-in-class DNA break repair inhibitorbased on a unique decoy mechanism.Currently it is in a Phase Ib trial withpreliminary results expected by end2020. AsiDNA has a broad potentialand can be combined with variousanticancer treatments.

Price performance% 1m 3m 12mActual (8.1) 47.7 (9.9)Relative* (6.5) 34.2 0.9* % Relative to local indexAnalystDr Jonas Peciulis

Onxeo (ONXEO)

INVESTMENT SUMMARY

Onxeo’s portfolio focuses on its novel platON platform, from which AsiDNA was the firstproduct to enter clinical development. AsiDNA is the only oligonucleotide decoy agonist indevelopment that disrupts and exhausts the tumour DNA damage response mechanism. Todate, the only approved similar class of drugs are four commercially successful PARPinhibitors. AsiDNA is now being tested in the Phase Ib part of the DRIIV-1 trial at the InstitutCurie in Paris in patients with advanced solid tumours in combination with chemotherapy.Another key Phase Ib/II trial, REVOCAN, should start soon and will evaluate AsiDNA’spotentially unique ability to reverse tumour resistance to the PARP inhibitor, niraparib. Theoutcomes of all these events will define AsiDNA’s mid- to late-stage development.

INDUSTRY OUTLOOK

Approval of the first PARP inhibitors has kick-started interest by the scientific communityand large pharma in the DNA Damage Response field. Few biotechs are already positionedin this emerging field that has broad potential.

Y/E Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(€m) (€m) (€m) (c) (x) (x)

2018 6.1 (3.4) (4.2) 4.92 14.0 N/A

2019 4.3 (9.1) (11.5) (14.98) N/A N/A

2020e 9.6 (4.1) (4.8) (7.09) N/A N/A

2021e 3.5 (10.5) (11.1) (16.56) N/A N/A





Company descriptionOpGen is focused on revolutionizingthe identification and treatment ofbacterial infections. Following themerger with Curetis, it has technologyplatforms to detect pathogens andpredict resistance. Importantly, theAMR Gene Panel and Unyveroplatforms have the ability to provideresults in hours instead of days.Price performance% 1m 3m 12mActual 3.4 (1.8) (70.7)Relative* 3.5 (14.0) (72.5)* % Relative to local indexAnalystMaxim Jacobs

OpGen (OPGN)

INVESTMENT SUMMARY

OpGen is a diagnostic company focused on revolutionising the identification and treatmentof bacterial infections. It recently merged with Curetis, a Germany-based moleculardiagnostics company with a complimentary focus on infectious disease. Curetis has twomain business lines: the Unyvero A50 high-plex polymerase chain reaction platform for thediagnosis of infectious disease in hospital patients and the ARES AMR database (ARESdb),which includes data on 40,000 sequenced strains with a focus on resistant pathogens.

INDUSTRY OUTLOOK

It currently takes days to test a patient sample to find out if they have an infection, what theyare infected with and to which drugs that infection might be susceptible. This can lead to adelay in treatment or the wrong treatment being prescribed. According to the Centers forDisease Control and Prevention, there are over two million cases of drug-resistant bacterialinfections every year.


2018 2.9 (13.2) (13.4) (4445.0) N/A N/A

2019 3.5 (11.7) (11.9) (738.0) N/A N/A

2020e 7.1 (21.4) (21.6) (139.0) N/A N/A

2021e 12.5 (17.9) (18.1) (116.0) N/A N/A


Price: €2.98Market cap: €158mMarket Madrid Stock Exchange


Company descriptionOryzon Genomics is a Spanish biotechfocused on epigenetics. Iadademstat(Phase IIa) is being explored for acuteleukaemias and SCLC; vafidemstat, itsCNS product, is in Phase IIa trials inMS, AD and aggression. Newer assetORY-3001 is being developed forcertain orphan indications.

Price performance% 1m 3m 12mActual (11.9) 10.2 (10.1)Relative* (7.7) 6.4 13.6* % Relative to local indexAnalystDr Jonas Peciulis

Oryzon Genomics (ORY)

INVESTMENT SUMMARY

Oryzon develops small molecule inhibitors for epigenetic targets. The company hascompleted one PhII and has seven ongoing PhII trials with two assets iadademstat (aspecific LSD1 inhibitor) and vafidemstat (a CNS-optimised LSD1 inhibitor). In April 2020,Oryzon reported first efficacy data from the PhIIa ETHERAL trial in Alzheimer’s disease(AD) (full results in Q221), plus positive data from the PhIIa trial in aggression in AD(REIMAGINE-AD) and announced a new vafidemstat trial in COVID-19 (ESCAPE). In July2020, Oryzon released final results from its PhIIa REIMAGINE trial with vafidemstat inaggressiveness in psychiatric diseases with improvement in all cohorts (BPD, ADHD andASD). Oryzon is preparing a PhIIb PORTICO with vafidemstat in BPD. In June 2020, itpresented more data from the PhII ALICE trial (iadademstat plus azacitidine) in AML, whichcontinues to impress. In September 2019, Oryzon presented data from its PhIIaCLEPSIDRA trial with iadademstat in SCLC with an OR achieved in six out of eight patients.

INDUSTRY OUTLOOK

Oryzon is among the leading clinical-stage drug developers with a second generation ofepigenetic therapeutics, which have greater selectivity and potentially a favourablesafety/efficacy profile than the first generation HDAC inhibitors.


2018 6.8 (2.8) (3.7) (3.37) N/A N/A

2019 10.3 (3.7) (4.6) (8.81) N/A N/A

2020e 9.9 (4.1) (4.7) (6.51) N/A N/A

2021e 9.9 (4.1) (4.2) (6.38) N/A N/A





Company descriptionOSE Immunotherapeutics is animmunotherapy company based inNantes and Paris, France and listed onthe Euronext Paris exchange. OSE isdeveloping immunotherapies for thetreatment of solid tumours andautoimmune diseases and hasestablished several partnerships withlarge pharma companies. Price performance% 1m 3m 12mActual (13.8) 25.6 61.3Relative* (12.3) 14.1 80.6* % Relative to local indexAnalystDr Jonas Peciulis

OSE Immunotherapeutics (OSE)

INVESTMENT SUMMARY

OSE Immunotherapeutics is a drug developer that focuses on both oncology and immunedisorders, with an R&D pipeline diversified across different indications and mechanisms ofaction. Long-term collaborations with top research institutions enable the company toidentify novel targets in a cost-effective and time-efficient manner and develop products forR&D and out-licensing. The success of this model is demonstrated by several commercialpartnerships, including a deal with Boehringer Ingelheim (BI) for a total value of €1.1bn plusroyalties. OSE’s most advanced internal programme is cancer vaccine Tedopi for NSCLC(Phase III), with step 1 successfully completed. In December 2019, OSE announced it hadsuccessfully completed a Phase I trial with OSE-127 (anti-IL-7), which is partnered withServier. In May 2020, OSE also announced a COVID-19 prophylactic vaccine programme,which could enter clinical trials as soon as end-2020.

INDUSTRY OUTLOOK

OSE operates within the field of immunotherapy and has products in development for bothimmunological diseases and cancer indications. We expect OSE’s strong relationships withresearch institutions and internal expertise to be a significant advantage in continuing todevelop pipeline products with partnering potential.


2018 24.5 5.0 4.8 38.0 14.5 43.2

2019 26.0 (0.9) (1.2) (30.0) N/A 13.7

2020e 0.0 (22.8) (22.9) (153.0) N/A N/A

2021e 0.0 (23.0) (23.1) (155.0) N/A N/A


Price: 751.0pMarket cap: £616mMarket LSE


Company descriptionOxford Biomedica’s (OXB) LentiVectortechnology underpins the strategy.OXB generates significant revenuefrom partners that use its technology,notably Novartis, Juno (BMS),Bioverativ and Orchard Therapeutics.It is implementing significant capacityupgrades to enable morepartnering/out-licensing agreements.Price performance% 1m 3m 12mActual (5.8) 12.1 6.4Relative* (2.4) 7.2 29.1* % Relative to local indexAnalystDr Susie Jana

Oxford Biomedica (OXB)

INVESTMENT SUMMARY

Oxford Biomedica (OXB) is a global leader in lentiviral development and manufacturing.OXB is expanding its manufacturing facilities through OxBox, a 84,000 sq ft state-of-the-artbioprocessing facility, significantly increasing its production capacity to match increasingdemand and to continue growing its platform revenues. In the near term, revenues willcontinue to be driven by the Novartis partnership for CAR-T Kymriah as the commercialroll-out continues. OXB has several established development and manufacturingpartnerships including Novartis, Juno Therapeutics (BMS), Bioverativ (Sanofi), OrchardTherapeutics, Axovant, Boehringer Ingelheim and Santen.

INDUSTRY OUTLOOK

Cell- and gene-therapy is the focus of much industry attention as it can dramatically alter theoutcomes of many diseases. OXB's proprietary lentivector platform has demonstratedpromise in many indications.


2018 66.8 13.5 0.3 4.3 174.7 38.1

2019 64.1 (4.6) (16.8) (16.4) N/A N/A

2020e 76.5 (0.3) (7.9) (3.7) N/A 146.2

2021e 104.4 8.9 0.9 0.9 834.4 57.7



Price: NZ$0.55Market cap: NZ$379mMarket NZSX

Share price graph (NZ$)

Company descriptionPacific Edge develops and sells aportfolio of molecular diagnostic testsbased on biomarkers for the earlydetection and management of cancer.Tests utilising its Cxbladder technologyfor detecting and monitoring bladdercancer are sold in the US, NewZealand and Australia.

Price performance% 1m 3m 12mActual 279.3 400.0 209.1Relative* 275.5 338.6 197.5* % Relative to local indexAnalystMaxim Jacobs

Pacific Edge (PEB)

INVESTMENT SUMMARY

Pacific Edge develops and sells a portfolio of molecular diagnostic tests based onbiomarkers for the early detection and management of cancer. Tests using its Cxbladdertechnology for detecting and monitoring bladder cancer are sold in the US, New Zealand,Australia and Singapore. Pacific Edge recently announced that Cxbladder Detect andCxbladder Monitor (93% of US lab throughput in FY20) gained inclusion in the CMS’s localcoverage determination (LCD), which would enable reimbursement and negotiation forpayment of many of the 21,789 tests previously performed on patients covered by CMS asof the end of FY20. Additionally, Kaiser Permanente, one of the largest non-profit healthproviders in the US with 12 million members, has reached an agreement with the companyon the commercial use of Cxbladder by its urologists.

INDUSTRY OUTLOOK

Molecular diagnostics is a growing, but increasingly competitive field. Lead times from theinitiation of user programmes to payment can be long.

Y/E Mar Revenue EBITDA PBT EPS P/E P/CF(NZ$m) (NZ$m) (NZ$m) (c) (x) (x)

2018 4.6 (19.5) (19.6) (4.5) N/A N/A

2019 4.8 (17.8) (17.8) (3.7) N/A N/A

2020e 5.2 (17.7) (18.7) (3.1) N/A N/A

2021e 19.1 (4.8) (5.8) (0.8) N/A N/A


Price: €2.93Market cap: €193mMarket FRA


Company descriptionPaion develops the fast-onset andshort-recovery anaesthesia productremimazolam, approved in Japan forGA and in the US for PS. ByFavo,sublicensed in the US to Acacia, isfiled in the EU, China and SouthKorea. A European GA filing isexpected in H121. The European salesstrategy needs to be confirmed.Price performance% 1m 3m 12mActual 10.6 56.3 11.4Relative* 9.7 30.7 9.1* % Relative to local indexAnalystDr John Savin

Paion (PA8)

INVESTMENT SUMMARY

The FDA has approved ByFavo (remimazolam), the ultra-short-acting sedative/anaesthetic,for US sale for procedural sedation (PS) taking under 30 minutes – mainly 25m colonoscopyand bronchoscopy procedures. A €15m milestone is due. ByFavo will be sold by Acacia inthe US with launch in autumn 2020; the license is now direct so Cosmo is now just ashareholder in both. In Japan, remimazolam (Anerem) is approved for general anaesthesia(GA). In the EU, the possible approval for PS is delayed to H121. The GA European trialclosed early, potentially allowing launch from late 2021. At 31 March Paion had cash of€18m and is funded, including loan facilities, till 2022. Paion guides to royalties of under€1m for 2020. The Yorkville loan has been fully converted.

INDUSTRY OUTLOOK

Paion is considering licensing or acquiring products to make a direct European salesforceeconomic. Until this happens, we assume a royalty deal. In Italy, remimazolam is undercompassionate use to sedate five COVID-19 patients.


2018 2.8 (12.5) (12.4) (15.9) N/A N/A

2019 8.0 (9.2) (9.3) (10.8) N/A N/A

2020e 20.3 2.4 2.4 3.7 79.2 204.9

2021e 4.2 (20.9) (20.9) (31.2) N/A N/A





Company descriptionAs of December 2019, PDLBioPharma has ceased to makeadditional strategic transactions andinvestments and is pursuing a formalprocess to unlock the value of itsportfolio by monetizing its assets andultimately distributing net proceeds toshareholders.


PDL BioPharma (PDLI)

INVESTMENT SUMMARY

PDL BioPharma has a portfolio of assets in the healthcare space covering the medicaldevice and biotechnology sectors. After completing a strategic review process, it hasdecided to cease additional strategic investments and monetise the company’s currentassets, returning net proceeds to shareholders. The company is targeting the end of 2020for the completion of the process. Key assets include a cataract surgical equipmentbusiness in its LENSAR subsidiary. PDL recently distributed its stake in Evofem, whichsubsequently received FDA approval for a non-hormonal contraceptive.

INDUSTRY OUTLOOK

PDL BioPharma has a portfolio of assets (royalties, notes and direct investments) inhealthcare covering the medical device and biotechnology sectors.


2018 198.1 84.1 78.8 45.22 6.2 N/A

2019 54.8 (60.3) (65.6) (59.62) N/A N/A

2020e 11.7 (58.3) (58.3) (37.35) N/A N/A

2021e 32.6 (47.6) (47.5) (40.79) N/A N/A


Price: NOK72.60Market cap: NOK1932mMarket Oslo

Share price graph (NOK)

Company descriptionPhotocure specialises in photodynamictherapy. Its bladder cancer imagingproduct is sold as Hexvix in Europeand Cysview in the US. Photocurehandles the marketing in Nordiccountries and the US, while Ipsen is itsmarketing partner in the EU.


Photocure (PHO)

INVESTMENT SUMMARY

Photocure is a commercial-stage Norwegian specialty pharmaceutical company thatmarkets Hexvix/Cysview for diagnosing and managing bladder cancer. US sales are a keydriver for the company and were up 55% in 2019. Photocure has announced that it is hassigned a final agreement with Ipsen to re-acquire the rights to Hexvix/Cysview in territorieswhere Ipsen is currently marketing the product (primarily the EU). The transition is expectedto occur on 1 October. Photocure expects the re-acquisition to be EBITDA accretive in 2021and beyond. Additionally, the company has announced that it is targeting NOK1bn inreported revenues for 2023 with 40% EBITDA margins as a result of the re-acquisition.

INDUSTRY OUTLOOK

Photocure is a photodynamic therapy company focused on bladder cancer. As its productsare typically a combination of a drug and a device, hurdles for generics are typically higherthan with other therapeutics.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(NOKm) (NOKm) (NOKm) (öre) (x) (x)

2018 181.5 (10.5) (22.5) (104.0) N/A N/A

2019 281.6 58.9 45.9 146.0 49.7 76.6

2020e 168.4 (46.8) (60.7) (312.0) N/A N/A

2021e 266.1 39.5 38.0 117.0 62.1 78.7





Company descriptionPixium Vision develops bionic visionsystems for patients with severe visionloss. Lead product Prima is a wirelesssub-retinal implant system designedfor dry-AMD. Pixium completed fiveimplantations in an EU feasibility studyand recently started a US feasibilitystudy.

Price performance% 1m 3m 12mActual (24.6) (22.8) (57.5)Relative* (23.3) (29.8) (52.5)* % Relative to local indexAnalystPooya Hemami

Pixium Vision (PIX)

INVESTMENT SUMMARY

Pixium Vision is developing the Prima wireless photovoltaic sub-retinal implant, whichtransforms images into electrical signals to elicit a form of central visual perception inpatients with severe retinal disease. In Q120, positive 18-month data was reported from itsEU feasibility study in patients with geographic atrophy associated with dry age-relatedmacular degeneration (GA-AMD), showing continued safety and improvements of betweenthree and seven lines on the Landolt C visual acuity scale versus baseline. Early in 2020,Pixium started a US feasibility study and we expect it to file for the PRIMAvera pivotal studyin H220 and start implantation in this trial in H121.

INDUSTRY OUTLOOK

Pixium recently completed a €7.3m capital increase, which we estimate should enable it tomaintain its operations into Q421. Prima is being evaluated in clinical studies as a potentialtreatment option for GA-AMD, a disease affecting ageing populations and a significantunmet medical need.


2018 1.6 (5.8) (7.7) (42.00) N/A N/A

2019 1.8 (8.4) (9.8) (44.00) N/A N/A

2020e 1.7 (7.2) (8.1) (26.00) N/A N/A

2021e 1.6 (9.4) (11.0) (26.00) N/A N/A




Company descriptionQuantum Genomics is abiopharmaceutical companydeveloping firibastat, a brainaminopeptidase A inhibitor for treatinghypertension and heart failure. Itsmechanism is implicated in the 25% ofpatients resistant to treatment.

Price performance% 1m 3m 12mActual (3.6) 25.1 (46.8)Relative* (1.9) 13.7 (40.5)* % Relative to local indexAnalystMaxim Jacobs

Quantum Genomics (ALQGC)

INVESTMENT SUMMARY

Quantum Genomics is investigating brain aminopeptidase A inhibitors, a new class of drug,for the treatment of hypertension and heart failure. Data from the Phase IIb NEW-HOPE trialstrongly suggests that firibastat is an efficacious, safe drug. After eight weeks of treatment,patients saw a statistically significant reduction from baseline (p<0.0001) in systolic bloodpressure of 9.7mmHg. A pivotal Phase III in 500 resistant hypertension patients has beeninitiated with results in H221. The company recently initiated a Phase IIb of firibastat in 294heart failure patients, with results expected in H220.

INDUSTRY OUTLOOK

The angiotensin pathway is one of the primary methods of modulating blood pressure and isthe target of many anti-hypertensive drugs, including ACEs and ARBs. However, there is aparallel pathway in the brain responsible for the secretion of vasopressin and heart rate thatis unaddressed by current drugs and that is being targeted by Quantum Genomics.


2018 0.0 (13.6) (13.6) (93.94) N/A N/A

2019 0.0 (10.8) (10.8) (52.69) N/A N/A

2020e 0.0 (20.7) (20.7) (96.39) N/A N/A

2021e 0.0 (21.6) (21.6) (96.56) N/A N/A





Company descriptionRedHill Biopharma focuses ongastrointestinal diseases and promotesseveral GI products in the US. Thecommercial portfolio includes Movantik(opioid-induced constipation), Talicia(H. pylori eradication) and Aemcolo(TD). The most advanced R&D assetsare RHB-204, RHB-104 andBEKINDA.Price performance% 1m 3m 12mActual (11.8) 11.6 2.4Relative* (11.6) (2.3) (3.7)* % Relative to local indexAnalystDr Jonas Peciulis

RedHill Biopharma (RDHL)

INVESTMENT SUMMARY

RedHill is marketing Talicia (RHB-105) for H. pylori infection (approved by the FDA inNovember 2019, launched in March); Movantik (2019 US sales of $96m) for opioid-inducedconstipation; and Aemcolo, a minimally-absorbed antibiotic formulation approved by theFDA for travellers’ diarrhoea (TD). The R&D pipeline includes RHB-204 for pulmonarynon-tuberculous mycobacteria (NTM) infections (pivotal Phase III study planned to start inQ320); RHB-104 for Crohn’s disease (positive top-line results from first Phase III announcedin July 2018); BEKINDA for both gastroenteritis (positive results from first Phase IIIannounced in June 2017) and IBS-D (positive final Phase II results announced in January2018). RedHill is also exploring its opaganib for COVID-19 in a Phase IIa study initiated inthe US and plans a Phase II/III study in Europe and other territories.

INDUSTRY OUTLOOK

RedHill's main focus includes a range of gastrointestinal conditions. Although they can betreated with a variety of innovative and established products, there is still an unmet need ineach of the diseases. In our view, carefully positioned, innovative solutions for the patientswill attract attention.

Y/E Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(US$m) (US$m) (US$m) (c) (x) (x)

2018 8.4 (39.2) (38.8) (16.79) N/A N/A

2019 6.3 (42.0) (42.1) (14.17) N/A N/A

2020e 93.0 (9.5) (9.7) (2.71) N/A N/A

2021e 137.0 3.4 3.2 0.67 1007.5 378.6


Price: 142.5pMarket cap: £45mMarket LSE


Company descriptionReNeuron Group develops allogeneiccell therapies focused on humanretinal progenitor cells for retinitispigmentosa. There is a strongpreclinical technology base inexosomes with the CTX strokeindication being partnered.

Price performance% 1m 3m 12mActual 5.6 (17.6) (48.2)Relative* 9.3 (21.2) (37.1)* % Relative to local indexAnalystDr John Savin

ReNeuron Group (RENE)

INVESTMENT SUMMARY

ReNeuron has released further follow-up data from the ongoing human retinal progenitorcell (hRPC) trial showing a robust sustained averaged response. The next dose level, twomillion cells in nine patients, remains delayed due to COVID-19; ReNeuron notes thatrecruitment may restart soon. A filing to start a pivotal study is expected in the second halfof CY21. ReNeuron now plans to use regional partnerships to progress the CTX cellplatform in stroke and possibly in Huntington’s disease. Recruitment to the US-basedPISCES III study in stroke is suspended. Both CTX and hRPC are partnered with Fosun inChina. Cash and equivalents on 30 September 2019 were £21.3m, providing funding into2021. FY20 results are due in July.

INDUSTRY OUTLOOK

Reneuron has research agreements to explore the potential use of the company’sproprietary exosomes to deliver novel therapeutics. Exosomes might be used to deliver viralvaccines. ReNeuron notes that Exosomes can be produced to GMP standards in a scalableprocess.

Y/E Mar Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2018 0.9 (20.2) (21.0) (55.66) N/A N/A

2019 2.7 (17.9) (17.2) (45.34) N/A N/A

2020e 6.1 (23.4) (22.8) (60.33) N/A N/A

2021e 3.1 (31.0) (30.8) (83.69) N/A N/A



Price: SEK14.38Market cap: SEK274mMarket SE


Company descriptionRhoVac is an immunotherapycompany listed on the Spotlight stockmarket in Sweden, with a 100%-ownedsubsidiary in Denmark. It is currentlydeveloping a peptide-basedimmunotherapy, RV001, which aims totrain the immune system to specificallytarget cancer cells with metastaticpotential. Price performance% 1m 3m 12mActual 10.6 22.5 (16.9)Relative* 17.1 15.8 (2.7)* % Relative to local indexAnalystDr Jonas Peciulis

RhoVac (RHOVAC)

INVESTMENT SUMMARY

RhoVac is developing RV001, a cancer immunotherapy designed to prevent or limitprogression to metastatic disease after curative intent therapy, by activating T-cells againstcells with metastatic potential. The therapy contains fragments of the protein RhoC, aprotein which is overexpressed in cells with metastatic potential across a range of cancers.The existing funding is expected to be sufficient to complete the ongoing Phase IIb study inprostate cancer (results expected end-2021) and complementing exploratory preclinicalstudies in other cancers. RhoVac's strategic aim is to secure a partner for the late-stagedevelopment and global launch of RV001.

INDUSTRY OUTLOOK

Metastatic cancer is the most advanced stage of cancer and is terminal. Unfortunately, alarge proportion of patients who are diagnosed with local cancer already have undetectablemetastatic cells or micro-metastases that have infiltrated other tissues. Preventing or haltingmetastasis formation through inhibiting the metastatic cascade or selectively killing cellswith metastatic potential could help contribute to a reduction of morbidity and an improvedsurvival.


2018 0.0 (20.1) (20.2) (194.94) N/A N/A

2019 6.0 (36.3) (35.9) (224.75) N/A N/A

2020e 0.0 (60.0) (59.4) (270.50) N/A N/A

2021e 0.0 (60.0) (59.6) (313.10) N/A N/A


Price: €28.10Market cap: €1576mMarket Madrid Stock Exchange


Company descriptionLaboratorios Farmacéuticos ROVI is afully integrated Spanish specialitypharmaceutical company that isdeveloping, manufacturing andmarketing small molecule andspeciality biologic drugs, with expertisein low molecular weight heparin(LMWH). Its drugs pipeline is focusedon its proprietary ISM technology.Price performance% 1m 3m 12mActual 25.4 19.6 40.9Relative* 31.3 15.5 78.0* % Relative to local indexAnalystDr Susie Jana

ROVI Laboratorios Farmaceuticos (ROVI)

INVESTMENT SUMMARY

ROVI is a profitable speciality healthcare company that markets ~40 proprietary andin-licensed products across nine core franchises, mainly in its domestic Spanish market.Since obtaining market authorisation for its internally developed enoxaparin biosimilar(Becat) in multiple countries, ROVI has commenced marketing in several Europeancountries and has signed out-licensing agreements that cover 91 countries globally - keydrivers for sales and operating growth in the medium term. In September 2019, ROVIannounced that it plans to build a new LMWH manufacturing facility over the next threeyears, doubling its current capacity. R&D progress continues with its proprietary ISMtechnology. Following positive PRISMA-3 data on DORIA (risperidone ISM), a long-actinginjectable for schizophrenia, regulatory fillings can be expected during 2020.

INDUSTRY OUTLOOK

ROVI has a strong presence in the Spanish heparin market (and select internationalmarkets through partners), where it has been manufacturing and marketing its flagshipproduct, Hibor (second-generation LMWH), since 1998.


2018 304.8 29.5 19.2 38.45 73.1 165.5

2019 382.5 60.9 45.6 76.64 36.7 N/A

2020e 402.7 53.6 37.0 62.11 45.2 35.0

2021e 438.4 57.7 40.8 68.10 41.3 33.5



Price: 69.80PLNMarket cap: PLN1115mMarket Warsaw Stock Exchange

Share price graph (PLN)

Company descriptionRyvu Therapeutics is an oncologyR&D company. The lead asset iswholly owned SEL120, a selectiveCDK8 inhibitor. SEL24/MEN1703 is adual PIM/FLT3 kinase inhibitorlicensed to the Menarini Group. Ryvualso has a diversified preclinical R&Dpipeline.

Price performance% 1m 3m 12mActual 7.4 55.5 85.2Relative* 10.0 39.8 138.3* % Relative to local indexAnalystDr Jonas Peciulis

Ryvu Therapeutics (RVU)

INVESTMENT SUMMARY

The key expected near-term developments include SEL24/MEN1703 (a dual PIM/FLT3kinase inhibitor) data from the dose-escalation part of the ongoing Phase I/II study in AML(timing and conference depends on partner and sole trial sponsor, Menarini); SEL120 (aselective CDK8 kinase inhibitor) interim data from the Phase Ib study in AML andmyelodysplastic syndrome (2020); and the start of IND-enabling studies in the A2A/A2Bproject in H220. Although the clinical trials are early in terms of clinical development, theyboth include secondary endpoints, which will evaluate the anti-cancer activity of thecompounds. We therefore expect the data readouts to be important catalysts for the shareprice. In addition to clinical-stage assets, Ryvu has a broad R&D pipeline of cutting-edgeoncology projects at earlier stages, which have been progressing steadily.

INDUSTRY OUTLOOK

The profiles of SEL24 and SEL120 are potentially unique compared to existing clinical-stagecompetitors and both candidates may offer efficacy advantages.

Y/E Sep Revenue EBITDA PBT EPS P/E P/CF(PLNm) (PLNm) (PLNm) (gr) (x) (x)

2018 51.7 (17.3) (23.0) (1.49) N/A N/A

2019 42.6 (36.1) (44.4) (2.26) N/A N/A

2020e 39.5 (22.5) (31.2) (1.95) N/A N/A

2021e 25.0 (40.0) (48.7) (3.05) N/A N/A




Company descriptionShield Therapeutics is acommercial-stage pharmaceuticalcompany. Its proprietary product,Feraccru, is approved by the EMA andFDA for the treatment of irondeficiency. Feraccru is marketedthrough partners Norgine, AOPOrphan and Ewopharma.

Price performance% 1m 3m 12mActual (8.9) 2.3 (22.6)Relative* (5.6) (2.1) (6.0)* % Relative to local indexAnalystDr Susie Jana

Shield Therapeutics (STX)

INVESTMENT SUMMARY

Shield Therapeutics is a commercial-stage speciality pharmaceutical company based in theUK. Its primary focus is the commercialisation of Feraccru/Accrufer, approved by the EMAand FDA for the treatment of iron deficiency in adults, with or without anaemia. Thecommercialisation of Feraccru in Europe, Australia and New Zealand is in the hands ofdistribution partner Norgine, and the product has been licensed to ASK Pharm in China.With FDA approval of the drug now obtained (to be marketed as Accrufer), Shield will seeka commercial partner for the US, which we assume will occur in the next 12 months. Thecompany reported an unaudited cash balance of £10.4m at 30 April 2020, which implies acash runway into Q121.

INDUSTRY OUTLOOK

The market for iron deficiency is substantial and Feraccru is a unique oral formulation of irondeveloped to overcome the side-effect profile of salt-based oral iron therapies and providesan alternative treatment to intravenously administered iron.


2018 11.9 (2.5) (5.2) (1.5) N/A N/A

2019 0.7 (6.4) (9.1) (7.5) N/A N/A

2020e 12.7 3.4 1.1 2.0 43.8 N/A

2021e 9.0 (2.2) (4.3) (3.2) N/A N/A





Company descriptionSilence Therapeutics (SLN) has aportfolio of siRNA drugs in early stagetesting. SLN124 for iron overload isentering the clinic in 2020. SLN360 isbeing developed for cardiovasculardisease and is targeting an IND filed inH220.

Price performance% 1m 3m 12mActual (0.7) (1.1) 454.9Relative* 2.9 (5.4) 573.5* % Relative to local indexAnalystDr Nathaniel Calloway

Silence Therapeutics (SLN)

INVESTMENT SUMMARY

Silence Therapeutics is a developer of RNA-based therapeutics with some of thefoundational intellectual property in the space. The value of its platform has beenhighlighted with recent licensing deals with Mallinckrodt to develop a complement inhibitor,with Takeda to research undisclosed targets, and recently with AstraZeneca to researchcardiovascular, renal, metabolic and respiratory targets. This is in addition to the company'sinternal pipeline: SLN124 is entering the clinic in 2020 and an IND is planned for SLN360later this year.

INDUSTRY OUTLOOK

RNA therapeutics is an increasingly high-profile sector of the biotechnology industry, nowwith multiple drug approvals for a range of disorders. We consider the technology in thisfield to be mature and expect increased interest across the industry to develop new drugs ofthis class.

Y/E Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2018 0.0 (20.2) (19.8) (25.2) N/A N/A

2019 0.2 (22.3) (22.3) (27.2) N/A N/A

2020e 4.6 (23.9) (23.7) (25.0) N/A N/A

2021e 10.0 (21.0) (20.9) (20.9) N/A N/A




Company descriptionSUDA Pharmaceuticals is a drugdelivery company focusing ondeveloping oro-mucosal spray versionsof established medicines. It has therights to ZolpiMist, the spray version ofAmbien for insomnia, outside of NorthAmerica.

Price performance% 1m 3m 12mActual (15.7) (29.2) (64.6)Relative* (12.4) (36.2) (60.2)* % Relative to local indexAnalystMaxim Jacobs

SUDA Pharmaceuticals (SUD)

INVESTMENT SUMMARY

SUDA Pharmaceuticals has focused on reformulating established drugs into oro-mucosalspray formulations for better bioavailability. Its lead commercial product is ZolpiMist, anoro-mucosal spray version of Ambien for the treatment of insomnia that is partnered incertain regions with Teva and Mitsubishi Tanabe. SUDA is also working on formulating anoro-mucosal version of anagrelide for the treatment of solid tumours in patients who havehigh platelet counts. Anagrelide is currently used as an anti-thrombotic agent to reduceelevated levels of platelets in essential thrombocythemia. Additionally, SUDA is working onspray versions of sumatriptan for migraine, cannabinoids for various conditions, as well asother projects.

INDUSTRY OUTLOOK

SUDA is targeting very large markets. ZolpiMist is a spray version of Ambien which has30m prescriptions in the US. Anagrelide is targeting multiple cancers, including ovarian,pancreatic and lung. Additionally, migraine has a prevalence of 13–15% in the US/EU.

Y/E Jun Revenue EBITDA PBT EPS P/E P/CF(A$m) (A$m) (A$m) (c) (x) (x)

2018 0.4 (5.9) (6.2) (11.20) N/A N/A

2019 1.2 (1.9) (2.4) (1.54) N/A N/A

2020e 0.7 (4.0) (4.5) (3.12) N/A N/A

2021e 0.6 (4.8) (5.4) (3.69) N/A N/A





Company descriptionSunesis Pharmaceuticals is apharmaceutical company focused ononcology. Its lead asset is SNS-510, aPDK1 inhibitor in preclinical studies fora range of solid and hematologictumors. It recently discontinued thedevelopment program for vecabrutinib.It has also developed pan-Raf inhibitorTAK-580, currently licensed to DOTTherapeutics.Price performance% 1m 3m 12mActual (43.9) (35.2) (66.8)Relative* (43.8) (43.2) (68.8)* % Relative to local indexAnalystDr Nathaniel Calloway

Sunesis Pharmaceuticals (SNSS)

INVESTMENT SUMMARY

Sunesis is a pharmaceutical company developing small molecule oncology drugs. Its leadprogram is SNS-510, a novel PDK1 inhibitor. The company plans to file a IND for the drugand begin clinical trials in 2020. It recently discontinued its vecabrutinib program afterseeing limited activity in Phase I.

INDUSTRY OUTLOOK

Sunesis is an oncology company with an early-stage asset with a validated target for thetreatment of B-cell malignancies.


2018 0.2 (25.7) (26.6) (75.00) N/A N/A

2019 2.1 (23.3) (23.3) (27.00) N/A N/A

2020e 0.0 (16.3) (16.6) (14.00) N/A N/A

2021e 0.0 (17.2) (19.9) (16.00) N/A N/A


Price: ¥473.00Market cap: ¥16124mMarket Tokyo

Share price graph (¥)

Company descriptionSymBio is a Japanese specialtypharma company with a focus ononcology and haematology. Treakisymis SymBio's branded formulation ofbendamustine HCl. Rigosertib wasin-licensed from Onconova andbrincidofovir was licensed fromChimerix in 2019.

Price performance% 1m 3m 12mActual (14.6) 49.7 (31.5)Relative* (9.6) 39.4 (29.8)* % Relative to local indexAnalystDr Nathaniel Calloway

SymBio Pharmaceuticals (4582)

INVESTMENT SUMMARY

SymBio is a speciality pharma focused on Asia-Pacific markets and has in-licensed twoorphan blood cancer products. Treakisym iv was approved for r/r low-grade NHL/MCL in2010 and in 2016 for CLL and first-line low-grade NHL/MCL. SymBio has in-licensed liquidformulations for injection that will give Treakisym patent protection to 2031; a clinical trial isunderway of the rapid-infusion liquid formulation that would reduce Treakisym infusion timefrom 60 minutes to 10. A Phase III trial of Treakisym in r/r diffuse large B-cell lymphomarecently reported positive results and the company has filed for a label extension. Rigosertibiv is in development for r/r HR-MDS and is in a pivotal Phase III global study in 360 patients;SymBio is enrolling patients in Japan and aims for potential filing in 2021. It intends toparticipate in a planned global trial of high-dose oral rigosertib in untreated HR-MDS. Itin-licensed the antiviral brincidofovir from Chimerix in September 2019.

INDUSTRY OUTLOOK

SymBio is focused on in-licensing niche opportunities in hard-to-treat indications oftenoverlooked by big pharma. An in-house screening process to select additional pipelinecandidates for development and commercialisation will be key to driving operationalleverage.

Y/E Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(¥m) (¥m) (¥m) (¥) (x) (x)

2018 3836.0 (2621.0) (2749.0) (165.5) N/A N/A

2019 2838.0 (4264.0) (4377.0) (189.2) N/A N/A

2020e 2608.0 (5179.0) (5256.0) (181.4) N/A N/A

2021e 9228.0 1165.0 1090.0 18.9 2502.6 14663.0



Price: NOK6.53Market cap: NOK497mMarket Oslo

Share price graph (NOK)

Company descriptionTargovax is an immunoncologycompany headquartered in Oslo,Norway, with an oncolytic virusplatform, ONCOS. ONCOS-102 iscurrently prioritised in severalindications including mesotheliomaand melanoma. Targovax is alsoworking on next-generation oncolyticviruses in its preclinical R&D pipeline.Price performance% 1m 3m 12mActual (12.4) 17.9 (5.6)Relative* (7.2) 11.5 10.5* % Relative to local indexAnalystDr Jonas Peciulis

Targovax (TRVX)

INVESTMENT SUMMARY

Targovax is an immunoncology company specialising in oncolytic viruses. ONCOS-102 is agenetically engineered adenovirus being tested in advanced melanoma, mesothelioma,peritoneal malignancies and prostate cancer. In June 2020, Targovax reported follow updata from the Phase I/II study (n=31) in mesothelioma. The mPFS for ONCOS-102-treatedfirst-line patients remained at 8.9 months (unchanged) vs 6.8 months in the control arm. The12-month OS was 64% in the ONCOS-102-treated first-line patients versus 50% in thefirst-line control arm. In July 2019, Targovax announced ORR and immune activation datafrom Part 1 of the ONCOS-102 Phase I study of patients with advanced melanoma. Theinitial data showed 33% ORR, which is promising in this setting. In Part 2 of this study, thepatients receive a much more intensive ONCOS-102 dosing regimen.

INDUSTRY OUTLOOK

CPIs have gained popularity over the past several years, although a large proportion ofpatients do not respond to them. Targovax's oncolytic virus technology is designed to primeimmune response to cancers, which offers synergies for use in combination with otherimmunoncology therapies.

Y/E Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(NOKm) (NOKm) (NOKm) (öre) (x) (x)

2018 0.0 (145.8) (147.3) (279.43) N/A N/A

2019 2.3 (146.2) (147.9) (242.77) N/A N/A

2020e 0.0 (134.5) (134.5) (193.25) N/A N/A

2021e 0.0 (136.6) (136.6) (179.85) N/A N/A




Company descriptionTelix Pharmaceuticals is aMelbourne-headquartered globalbiopharmaceutical company focusedon the development of diagnostic andtherapeutic products based ontargeted radiopharmaceuticals ormolecularly targeted radiation.

Price performance% 1m 3m 12mActual 11.9 29.7 1.3Relative* 16.2 16.9 13.8* % Relative to local indexAnalystDr Nathaniel Calloway

Telix Pharmaceuticals (TLX)

INVESTMENT SUMMARY

Telix is developing diagnostic and therapeutic radiopharmaceuticals for kidney, prostate andbrain cancers. It is commercialising TLX591-CDx (illumet) in the US and Europe andanticipates filing for FDA approval shortly. Telix expects to fully enroll the ZIRCON Phase IIIfor kidney cancer imaging agent TLX250-CDx by the end of 2020.

INDUSTRY OUTLOOK

Big pharma has shown keen interest in MTR products. In 2017 Novartis acquired AdvancedAccelerator Applications, the developer of the MTR therapeutic Lutathera, for US$3.9bn. In2014 Bayer acquired Algeta for ~US$2.6bn; Algeta had developed Xofigo, a therapeuticradiopharmaceutical for prostate cancer. In December 2018 Novartis acquired prostatecancer radiopharmaceutical developer Endocyte for US$2.1bn.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(A$m) (A$m) (A$m) (c) (x) (x)

2018 10.3 (17.5) (15.7) (6.84) N/A N/A

2019 15.2 (24.3) (31.1) (11.94) N/A N/A

2020e 12.0 (26.1) (30.3) (11.95) N/A N/A

2021e 97.8 62.4 57.9 22.57 6.9 5.1



Company coverage

Company Note Date published

Abliva Update; Update 11/03/2020; 26/06/2020

Acacia Pharma

Update; Update 05/06/2020; 06/07/2020 Actinogen Medical Flash; Update 08/05/2019; 15/10/2019

ADL Bionatur Solutions Flash; Update 14/08/2019; 11/12/2019

AFT Pharmaceuticals

Outlook; Update 25/11/2019; 21/05/2020 ASIT biotech Update; Update 19/09/2019; 26/11/2019

Auris Medical Holding Update; Update 15/10/2019; 21/04/2020

Basilea Pharmaceutica Outlook; Update 07/01/2020; 20/02/2020 Bioasis Technologies Initiation; Update 16/06/2020; 02/07/2020

BioPorto Diagnostics Update; Update 02/04/2020; 11/05/2020

Brighter Update; Update 18/03/2020; 28/05/2020

Cantargia Update; Update 17/12/2019; 06/05/2020

Carmat Update; Outlook 26/10/2018; 27/09/2019

CASI Pharmaceuticals Outlook; Update 16/04/2020; 12/05/2020

Deinove Update; Update 16/10/2019; 21/02/2020

Ergomed Initiation; Flash 25/03/2020; 10/06/2020

Hepion Pharmaceuticals Initiation; Update 27/05/2020; 08/07/2020

Hutchison China MediTech Update; ADR Update 06/07/2020; 06/07/2020 Immunicum Update; Update 07/02/2020; 15/05/2020

InMed Pharmaceuticals Update; Update 22/01/2020; 20/02/2020

International Stem Cell Update; Update 01/05/2019; 05/06/2019 Laboratorios Farmacéuticos ROVI Update; Update 28/02/2020; 18/05/2020

MagForce Update; Scale update 29/04/2020; 13/07/2020

Mesoblast Update; Update 16/03/2020; 01/07/2020 Newron Pharmaceuticals Update; Update 05/05/2020; 22/05/2020 Oncology Venture Update; Update 09/06/2020; 14/07/2020

Onxeo Flash; Update 19/09/2019; 27/05/2020

OpGen Update; Update 03/12/2019; 16/04/2020

Oryzon Genomics Update; Update 14/04/2020; 15/06/2020

OSE Immunotherapeutics Update; Update 07/04/2020; 08/07/2020

Oxford BioMedica Update; Flash 18/05/2020; 08/06/2020

Pacific Edge Update; Outlook 10/06/2019; 06/01/2020

Paion Update; Update 09/06/2020; 07/07/2020

PDL BioPharma Update; Update 30/03/2020; 27/05/2020

Photocure Update; Update 04/03/2019; 13/05/2020

Pixium Vision Outlook; Update 22/06/2020; 09/07/2020

Quantum Genomics Update; Update 06/01/2020; 09/042020

RedHill BioPharma Update; Update 16/04/2020; 29/05/2020

ReNeuron Group Update; Update 23/06/2020; 06/07/2020

RhoVac Update; Update 21/01/2020; 24/02/2020

Ryvu Therapeutics Update; Update 23/03/2020; 11/05/2020

Shield Therapeutics Update; Update 04/05/2020; 22/05/2020

Silence Therapeutics Update; Update 25/03/2020; 16/04/2020

SUDA Pharmaceuticals Initiation 06/07/2020

Sunesis Pharmaceuticals Update; Update 26/03/2020; 26/06/2020

SymBio Pharmaceuticals Update; ADR Update 26/05/2020; 28/05/2020

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