Telix Pharmaceuticals

Strategic Transaction: Telix Pharmaceuticals Ltd (ASX: TLX), a clinical-stage biotechnology company that is engaged in the development of diagnostic and therapeutic products has recently acquired Atlab Pharma SAS for $10m. Atlab Pharma is developer of an antibody-targeted anti-cancer drugs based in France. This deal is expected to enable the acquirer company to expand the indication for Lutetium-labelled huJ591, which is an anti-prostate specific membrane antigen (PSMA) antibody and a validated target in prostate cancer. As part of the acquisition, TLX has renegotiated Atlab’s material background intellectual property licenses, notably with BZL Biologics LLC. Further, the transaction also has the potential to give TLX a significant edge in the combination use of PSMA-targeting therapeutics with androgen-targeting drugs such as Zytiga and Xtandi. The Atlab/BZL patent portfolio undepins potential indication expansion for TLX’s TLX591 program. Further, Atlab has the exclusive rights to an extensive clinical data set in approximately 200 patients which is highly informative to the development of TLX591 This also includes the unpublished data around dose optimization schemes for antibody-based PSMA radiopharmaceuticals. Moreover, after this deal Atlab and BZL, together, are expected to bring considerable knowledge and expertise to the Telix team. Meanwhile, TLX stock has risen 33.85% in three months as on September 17, 2018. TLX stock was in trading halt and resumed trading on 12 September 2018. Group’s double moving average and stochastic indicators have been bullish while immediate resistance can be seen at $ 0.895.
Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $ 0.875.
 

Oncosil Medical 

Appoints IQVIA as EU Market Access and Reimbursement Advisor: Oncosil Medical Ltd (ASX: OSL), a late-stage medical device company, is focused on localized treatments for patients with pancreatic and liver cancer. OSL stock rose after the company’s appointment of IQVIA in Europe as part of commercialisation strategy. IQVIA will be its Market Access and Reimbursement advisor for the OncoSil device in EU markets including France, UK, Germany and the Nordic countries. IQVIA is a NYSE-listed global provider of advanced analytics, technology solutions, and contract research services to the health care industry. After IQVIA’s appointment, the company will focus on early and special reimbursement options, private paying alternatives for patients, special funding for treatment of challenging cancers and reimbursement options at local, regional and national or governmental level. Overall, this is a significant milestone in the company’s commercialisation strategy in expectation of securing CE Mark approval and moving into early commercialisation of the company’s device over the coming months. Meanwhile, OSL stock has fallen 7.69% in three months as on September 17, 2018.
Based on the foregoing, we give a “Speculative Buy” recommendation on the stock at the current price of $ 0.180 while resistance at or above $0.190 is to be monitored.
 

Monash IVF Group

Weak Performance in FY 18: Monash IVF Group Ltd.’s (ASX: MVF) has recently revealed about one year exclusive agreement inked with Bio-separations company, Memphasys for the use of sperm processing device called 'Felix', which has been tested by Monash IVF for about six months. As part of the deal Monash IVF/ nominee will get $80,000 worth of fully paid ordinary shares in Memphasys. MVF stock has otherwise fallen a bit in three months as on September 17, 2018 after the company for FY 18 reported 27.9% fall in the profit to $21 million, 22.2% fall in EBITDA and 2.9% fall in the revenue to $151 million. The revenue in FY 18 is affected due to a Specialist departure and a decline of 0.6% in the Australian ARS market. However, it is partly offset by the company’s underlying market share growth, price rise, strong growth in the Malaysian clinic and expansion of the revenue base through the non-invasive prenatal testing offering. The EBITDA Margin for FY 18 declined to 25.3% from 31.6%, due to the leverage impact from volume decline in Victoria, continued investment in the Operations, People, Science & Technology and International business and also due to one-off costs incurred on the back of Fertility Specialist departure in Victoria and restraint legal proceedings, recruitment of key personnel and organisation restructure ($1.2m). Additionally, 1H19 NPAT is expected to decline by approximately 15% on pcp, as 1H18 includes the one quarter of ARS activity from a departed Specialist. MVF expects to deliver NPAT growth in FY19 on pcp. On the other hand, as per some media reports, Dr Lynn Burmeister has claimed that there were a number of events during her time with the company where she felt bullied and uncomfortable. Meanwhile, MVF stock is trading at a reasonable P/E of 12.25x.
We maintain a “Hold” recommendation on the stock at the current price of $1.120.
 

FY 18 Financial Performance (Source: Company Reports)
 
 

 
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