Proactive Investors - Run By Investors For Investors

e-Therapeutics - Capital Network: Undervalued Stock with a Unique Approach to Drug Discovery

e-Therapeutics - Capital Network: Undervalued Stock with a Unique Approach to Drug Discovery
  1. e-Therapeutics (LON:ETX) focuses on the discovery of  new drugs in a more efficient and effective way and aims to be a valued partner to address the productivity challenge that the pharma industry faces.
  2. e-Therapeutics (LON:ETX) has developed a novel and unique in-silico approach to drug discovery: starting from the analysis of complex interactions between proteins in biological systems (networks), they apply advanced computational techniques to identify new drug candidates.
  3. This approach was labeled Network-driven Drug Discovery (NDD) and has been validated across several therapeutic areas (cancer, central nervous system, auto-immunity, infectious diseases) and molecular pathways.
  4. e-Therapeutics (LON:ETX) discovery platform has generated three drug candidates for multiple cancer indications which are ready to be out-licensed to pharma partners for their further development.
  5. We estimate e-Therapeutics intrinsic value to be roughly 3x higher than current market capitalisation. The latter doesn't reflect the commercial potential of e-Therapeutics' most advanced drug candidates and of the platform itself.
  6. e-Therapeutics ability to finalise a co-development or licensing agreement in the near term will represent a key inflection point for its stock re-rating.

Our model doesn't include any recurrent or non-recurrent income from potential licensing agreements that e-Therapeutics may sign over the coming months or years.
 
We focus on the ongoing operating expenses necessary to support the generation of further drug candidates, which we expect to be in the £7-8 million range in the next few years.
 
Our cash flow projection also take into account that the company receives cash tax credits worth approx. 1/3 of their R&D expenses.
 
As such, based on our forecast, e-Therapeutics has sufficient funds to support their ongoing discovery activities into the first half of calendar year 2019 (fiscal year ending Jan. 2020).

Full report is available via Capital Network website
View full ETX profile View Profile

e-Therapeutics plc Timeline

Research Video
March 28 2018

Related Researches

no_picture_pai.jpg
January 18 2019

Feraccru is a unique, non-salt, formulation oral iron: strong efficacy with “placebo-like” tolerability

Potential to change iron deficiency anaemia (IDA) therapeutic algorithm

Feraccru to become the preferred option for patients not adequately controlled or who are intolerant to generic oral iron supplements (before they switch to intravenous iron).

With an indication in Europe to treat iron deficiency, Feraccru’s use would prevent the occurrence/reoccurrence of iron deficiency anaemia

Feraccru European commercialisation expected to accelerate significantly following the licensing agreement with Norgine announced in September 2018

Key upcoming milestones: results of the head-to-head phase 3 study of Feraccru vs intravenous (i.v.) iron expected in first half (1H) of 2019; Feraccru PDUFA (Prescription Drug User Fee Act) date 27 July 2019

Current market capitalisation of about £40mln is by and large not reflecting Feraccru commercial potential

no_picture_pai.jpg
May 09 2019

Shield Therapeutics (LON:STX) is making excellent progress having reported two sets of new supportive clinical data on its lead product Feraccru, a low dose oral iron capsule. Feraccru is being positioned as an alternative therapy for patients with iron deficiency (ID) and iron deficiency anaemia (IDA) unable to tolerate or unresponsive to first-line oral iron tablets and as an alternative to second line invasive intravenous (IV) iron.

no_picture_pai.jpg
July 30 2018

Avacta Group Plc (LON:AVACT) has recently finalised a co-development partnership with Boston-based Bach BioSciences, to exploit the potential of the Affimer platform for the development of a novel class of drug conjugates.

Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use