Blog Archives

Cynata (ASX: CYP) - The Swiss Army Knife of cellular remedies

24/7/2017

Today we've published our initiation report on one such pioneer, a Melbourne-based regenerative medicine company called Cynata (ASX: CYP).

Regenerative medicine is the future – and will create some billion-dollar companies. Cynata is well placed for this race. Its Cymerus technology uniquely produces vast quantities of Mesenchymal Stem Cells (MSCs) from a single blood donation. This science, originated by Professor Igor Slukvin at the world-leading stem-cell labs of the University of Wisconsin-Madison, is exclusively licensed to Cynata. MSCs have wide application: heart repair, rebuilding bones and cartilage, reducing inflammation and much more. For example, in early 2017 (with backing from Britain’s NHS), Cynata initiated a UK-based Phase 1 trial in steroid-refractory acute Graft vs Host Disease (GvHD). Happily, international majors are noticing Cynata’s ground-breaking progress. In January of this year, Fujifilm (now a global leader in cellular medicine) initiated a strategic partnership with Cynata and optioned the GvHD indication in a deal with upfront, milestone and royalty payments. The company also made a $4m equity investment in Cynata. The future is on the way. Our target of $2.00 per share sits at around the mid-point of our probability-weighted valuation range of $1.03 per share base case and $2.77 per share optimistic case.

You can download a copy of NDF Research's initiation report on Cynata by clicking here or visiting ndfresearch.com. We commend the report to you. Note - the usual disclaimers apply - click here.

0 Comments

July 17th, 2017

17/7/2017

0 Comments

This note updates our 1 December 2016 note headlined ‘World-leading MRI diagnostic’. Resonance Health was originally built on FerriScan, an MRI-based test for iron overload disorders which gained FDA approval and CE Mark in 2005. FerriScan is widely regarded as the most accurate measure of Liver Iron Concentration in the world, being highly useful in managing a range of conditions from hemochromatosis to thalassemia to sickle cell disease. The diagnostic earns Resonance around A$2.0-2.5m in revenue a year. This could be higher we it not for the fact that at this stage FerriScan is not widely reimbursed. Resonance is gathering data on the utility of FerriScan and hopes to obtain further reimbursement in the future. In the meantime, it has developed a new technology based on machine learning (artificial intelligence) which it believes can markedly lower the cost of the FerriScan diagnostic. This new test can reasonably be expected to unlock new market opportunities, most notably in developing countries where there is a critical need for a robust diagnostic. We value Resonance at 7.6 cents per share base case and 14.5 cents per share optimistic case. Our target price of 11 cents per share sits at the midpoint of our DCF range.

Click here for our update report. For our initiation note from 1 December 2016 click here.

0 Comments

Dimerix (ASX: DXB) - Phase 2 success for DMX-200

13/7/2017

0 Comments

A new research note from NDF Research updates our 25 August 2016 note on Dimerix headlined ‘Hitting the GPCR spot’. Dimerix’s lead DMX-200 candidate, a combination of two existing drugs, irbesartan and propagermanium, has now completed its Phase 2a study in patients with proteinuria, which is symptomatic of a range of kidney problems. We consider the results of this study highly encouraging. Irbesartan is already used to treat kidney disease, and in Dimerix’s study 25% of patients showing a greater than 50% reduction in proteinuria beyond what was achieved with the highest dosage of standard of care therapy. The fact that 45% of the patients chose to continue with DMX-200 under a ‘Special Access Scheme’ arrangement after completion of their trial dosing suggests that the drug is working as expected. Dimerix will now prepare to initiate a Phase 2b towards the end of 2017, ahead of a potential Phase 3 in an Orphan kidney disease by 2019. Our 4-cent price target and Buy recommendation for Dimerix stays in place.

Click here for our update report. For our initiation note from 25 August 2016 click here.

0 Comments

Cynata (ASX: CYP) - The Swiss Army Knife of cellular remedies

July 17th, 2017

Dimerix (ASX: DXB) - Phase 2 success for DMX-200

Stuart Roberts

Archives

Categories

Cynata (ASX: CYP) ​- The Swiss Army Knife of cellular remedies

July 17th, 2017

Dimerix (ASX: DXB) ​- ​Phase 2 success for DMX-200

Stuart Roberts

Archives

Categories

Cynata (ASX: CYP) - The Swiss Army Knife of cellular remedies

Dimerix (ASX: DXB) - Phase 2 success for DMX-200