PYC Therapeutics Limited
PYC Details
PYC Therapeutics Limited (ASX: PYC) is the development stage biotechnology company. The market capitalisation of the company stood at ~$453.28 million as on 21st July 2021.
Quarter ended 31st March 2021
Overview of Cash Flows: For the period, the company stated that net cash used in operating activities stood at -$2.71 million and net cash used in investing activities stood at -$0.324 Mn. Net cash used in financing activities was $0.046 Mn.
Important Achievements: The company progressed the development of VP-002 for the treatment of autosomal dominant optic atrophy (or ADOA). Notably, it has also advanced its ocular pipeline including the proof of concept work with PYC-001 in order to treat diabetic retinopathy (or DR).
Key Data (Source: Company Reports)
Result Performance (Half-Year Ended 31 December 2020 – H1FY21)
The company reported revenue of $0.106 Mn, up 82% YoY. Net loss for H1FY21 stood at $7.75 million, up from the loss of $2.1 million in pcp. The rise in the net loss as compared to the previous half year was because of the higher expenditure on the lab consumables as well as personnel, incurred to advance the lead program through Investigational New Drug enabling studies as well as the timing of the R&D grant receipt.
Outlook:
The company continues to execute on the strategic goals in order to advance the transformation from an Australia-based discovery-focused organization into the Australia as well as U.S.-based multi-asset clinical stage biotechnology company.
Recently, the company announced that it has entered into the next phase of preclinical development for VP-001, its lead candidate for the treatment of Retinitis Pigmentosa type 11 (RP11). The company has started larger animal studies in rabbits, and non-human primate (NHP) studies are anticipated to commence later in Q3 FY 2021. Notably, the data is anticipated to be released in early Q4 FY 2021.
Key Risks:
The company is exposed to the risks related to the delay and non-receival of required approvals for its products.
Technical Overview:
Chart:
Source: REFINITIV
Stock Recommendations:
The company’s current ratio for H1FY21 stood at 49.17x, better than the H1FY20 result of 37.28x, implying that the company possesses better capabilities to meet its short-term obligations. Its Debt to Equity ratio for H1FY21 stood at 0.01x, lower than the H1FY20 result of 0.03x, depicting reasonable leverage position of the company. The stock has made a 52-week low and high of $0.109 and $0.204, respectively.
Considering the current trading levels, we recommend a ‘Speculative Buy’ rating on the stock at the current market price of $0.150 per share, up by 5.263% on 21st July 2021.
Imagion Biosystems Limited
IBX Details
Imagion Biosystems Limited (ASX: IBX) is engaged in developing a new non-radioactive and safe diagnostic imaging technology. Bringing together biotechnology and nanotechnology, IBX aims to detect cancer and other diseases earlier and with higher specificity.
Activity Performance Highlights for Q1FY21 (For the Period Ended 31 March 2021)
Received Approval: IBX has also bagged approval for an Innovations Connections grant (a Federal Government funding program delivered by the CSIRO) that is targeted to facilitate connecting industry with researchers to assist in accelerating R&D projects.
Cash Balance Stood at $13.0 million: Cash balance largely remained flat in Q1FY21, down by $0.2 million to $13.0 million. It has received more than $1.3 million during the quarter upon the exercise of options that has partially offset the operating cash outflows.
Key Data (Source: Company Reports)
Recent Updates
Got Tax Incentives: IBX has got 2020 R&D tax incentive claim of $2,612,159 from the Australian Taxation Office as compared to the claim of $2,197,028 received in 2019. The increase in claim in 2020 signifies higher R&D spend.
First Patient Enrolled for Clinical Study: In a major step for its Phase I MagSense® HER2 breast cancer study, the company, on 25 May 2021, informed the enrolment of its first patient into its first clinical study. The study examines the use of a MagSense® imaging agent as a means of assisting in the staging of HER2 positive breast cancer by detecting whether the patient’s tumor has spread to the lymph nodes.
Outlook
IBX is emphasising on higher pace of recruitment and has undertaken various concurrent initiatives. The initiatives include continued increase in the number of sites as well as improving visibility to the study for patients via engagement with relevant medical professionals. Further, it is exploring possibilities to grow the eligibility criteria for patients to enter the study.
Key Risks
The company is exposed to various financial risks that includes market risk (including foreign currency risk, price risk, and interest rate risk), credit risk, and liquidity risk.
Technical Overview:
Chart:
Source: REFINITIV
Stock Recommendation
Meanwhile, the company has executed a lease for the new premises in San Diego with the move expected to occur in November 2021. The stock of the company rose by ~79.1% in 1 year and ~11.6% in 9 months. It has made a 52-week low and high of $0.045 and $0.225, respectively.
Considering the aforementioned factors, decent cash position as well as current trading levels, we give a “Speculative Buy” recommendation on the stock at the current market price of $0.086 per share on 21st July 2021.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decisions should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.
Technical Indicators Defined:-
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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