Nuevolution: Pushing the envelope

Research Update

2017-05-30

08:50

Nuevolution has had a busy start of the year with a lot of progress. The development of Chemetics continue to push boundaries with the successful completion of a 40 trillion-member library, likely the world’s largest. Results from GPCR-target screening gives an indication of future possibilities with Chemetics. The pipeline programs are progressing. RORγt inverse agonist are under development by Almirall and we expect initiation of Phase I by early 2018, while other indications are being pursued by Nuevolution. The Amgen collaboration has been showing promising signs with two projects identified and progressed. The net result for Q3 was SEK -29.0 (-20.9) million with net sales of SEK 1.6 (6.0) million and operating costs of SEK 31.4 (27.6) million. Net cash at the end of Q3 was SEK 196.2 (210.8) million. We have updated our expenditure estimates for the full year, resulting in slightly higher costs than previous estimates. The cost adjustments have a minor effect on our valuation. We have also lowered the WACC to 14.0 (15.0) percent which has a positive effect on the value. Fair value in our Base Case is now SEK 24 (23) per share. Bull and Bear Case stand at SEK 33 (31) and SEK 15 (15) per share.

MS

Mathias Spinnars

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