Northland Capital partners view: Evgen has had a transformative year-to-date. The group is now fully funded to achieve its product development goals. The group’s core technology allows for the production of a stable version of sulforaphane, a potential treatment for various conditions, including several cancers and neurological disorders. To date, despite considerable evidence supporting sulforaphane’s therapeutic properties, issues surrounding the drug’s stability, storage and delivery have hindered its development. Thanks to Evgen’s patented Sulforadex® technology platform, the company is well positioned to unlock the medical and commercial potential of this promising drug.
| Maiden interim results in line with our expectations | ||||||||||||||||||||||||||||||||||||||||||||||||||
| n Evgen announced interim results (unaudited) for the six months ended 30 September 2015 which were in line with our expectations. The group reported a Net Loss After Tax for the period of £1.2m (30 September 2014: net loss £1.1m). We expect FY-03/2016 Adjusted Loss After Tax of £3.5m—the group is expected to ramp up development costs in H2.
n The key events over the period and post period end were the group’s oversubscribed IPO on AIM in October 2015, raising £7m in gross proceeds, and an oversubscribed pre-IPO round in August 2015, raising £2m in gross proceeds. With the proceeds of these funding rounds, the company is fully funded to complete two Phase II studies of its lead treatment, SFX-01, and to support further preclinical work. n Evgen reported that preparations for these trials and studies are proceeding to schedule and the company will also continue to collaborate with investigators in other disease areas n During the period the company also reported positive data on SFX-01 as adjunct to hormonal therapy in patient-derived xenografts using cancer tissues from early and late stage breast cancer patients (data presented at the American Association of Cancer Research, April 2015). n No change to our forecasts. We reiterate our 79p Target Price, BUY.
Source: Northland Capital Partners Limited. * Northland Capital Partners acts as Nomad and Broker to Evgen Pharma. |
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