Sprint Bioscience

- Sprint Bioscience need to secure and replace some earlier pharma partners. 
- Sprint Bioscience has not yet achieved break-even sales 
- Sprint Bioscience remains a small business with limited resources.

- Sprint Bioscience operates very close to its customers and business partners
- Sprint Bioscience can secure milestones, royalties and sometimes recurring sales at a very early stage
- Sprint Bioscience is transparent both in terms of its business and the performance

- Sprint Bioscience has not reached break-even
- Sprint Bioscience need to secure additional partners during 2025
- Candidates are in the discovery phase with a long time to actual commercial sales

- Sprint Bioscience operates very close to its customers and business partners
- Sprint Bioscience can secure milestones, royalties and sometimes recurring sales at a very early stage
- Sprint Bioscience is transparent, and it has secured recurring sales that cover most of its OPEX

- Springt Bioscience need to secure and replace some earlier pharma partners. 
- Sprint Bioscience has not yet achieved break-even sales 
- Spring Bioscience remains a small business with limited resources.

- Sprint Bioscience has a different method and approach to drug desovery
- Spring Bioscience has demonstrated the ability to secure royalties and milestones early in the process. 
- Sprint Bioscience has demonstrated the ability to secure contracted recurring discovery services.

Yesterday afternoon, Sprint Bioscience announced that the company had licensed its VADA program to Day One Biopharmaceuticals. The license agreement covers global rights to the program and has a total potential value of USD316.0m, plus single-digit royalties on sales of a future drug from the program. Sprint Bioscience will receive an upfront payment of USD3.0m upon signing the agreement. Sprint Bioscience will lead project development and receive reimbursement for continuing preclinical research and development activities in the coming two years. Additionally, Sprint Bioscience is entitled to milestones during the program’s continued development, regulatory process, and commercialization of a potential drug.
Since our research update in May 2023, we anticipated a VADA licensing deal in 2023e, which has been factored into our valuation of Sprint Bioscience. This deal included Europe and the US. Our assumptions were based on the company’s confirmed ongoing advanced discussions with several potential partners for the VRK1-targeting project and the company’s current financing needs. Our assumptions were a total deal value of USD262m, USD4.0m upfront and 6.0% royalties. The recently announced deal with Day One Biopharmaceuticals closely aligns with our estimates.
Yesterday, the share was up +200% on the press release and closed at SEK1.80, above our base case of SEK1.1. Notably, Sprint Bioscience’s stock experienced a low average daily turnover of 572,041 shares in the past three months (approximately 0.8% of the total shares). We believe the licensing agreement will enable Sprint Bioscience to regain some investor confidence in the wake of the company’s recent setbacks (the return of the PETRA01 and NASH programs). However, as expectations have risen, the company must deliver on its business plan and strategy to maintain current share momentum. Otherwise, the recent share development could be short-lived.
The licensing deal brings valuable non-dilutive funding to the company, easing the financing worries temporarily. The company has had an average and median operating cash flow of around SEK-40.0m for the past three years. Thus, according to our preliminary projections, the company has a financial runway through 2024e. We will return with our updated take on the case going forward, where we will likely increase our base case.