Stocks’ Details

Starpharma Holdings Limited

Update on DEP® irinotecan: Starpharma Holdings Limited (ASX: SPL) is in the development of dendrimer technology for pharmaceutical, life science and other applications. It has a market capitalisation of A$416.33 Mn as on 12^th September 2019. Recently, the company with the help of a release announced that its patented clinical stage nanoparticle formulation, DEP® irinotecan has shown significantly enhanced efficacy benefits over standard irinotecan (Camptosar®) and olaparib (Lynparza®) alone and in combination, in an irinotecan-refractory HT-29 human colon cancer xenograft model. It added that the DEP® irinotecan is currently in phase 1 / 2 trial at leading UK hospitals, and these data would inform the clinical development program going forward. The following picture provides an idea of financial performance for the year ended 30^th June 2019:


Results Summary (Source: Company Reports)

What to Expect:For the year ahead, the company expects further exciting progress in its clinical-stage DEP® products and in some cases expanding these programs to explore combination therapies and new indications. Internally, it continues to develop new DEP® candidates and build its portfolio of high-value DEP® assets. Considering its strong balance sheet and expectation of growing revenues, the company is well-placed for growth to leverage its expertise, its human capital and intellectual property portfolio to drive success and increase shareholder value.

Stock Recommendation:The company reported net operating cash outflows of $10.3 Mn for FY19 as compared to the prior year of $10.2 Mn. The current ratio of the company stood at 7.44x in FY19 as compared to the industry median of 1.91x. This implies that the company is in a decent position to meet its short-term obligations against the broader industry. On the stock’s performance front, it produced a return of 9.80% in the time span of six months. Currently, the stock is trading slightly below the average of 52-week high and low levels of $1.662 and $0.870, respectively. Hence, considering the above-stated facts and current trading levels, we give a “Hold” recommendation on the stock at the current market price of A$1.110 per share (down 0.893% on 12^th September 2019).
 

Paradigm Biopharmaceuticals Limited

Clearance by US-FDA:Paradigm Biopharmaceuticals Limited (ASX: PAR) is a biopharmaceutical company, which is focused on repurposing the drug, pentosan polysulphate sodium, for the lead clinical indication of bone marrow edema. It has a market capitalisation of A$376.73 Mn as on 12^th August 2019. The company, through a release dated 10^th September 2019 announced that its first Investigational New Drug application has received clearance by the US FDA within the 30-day review period. It added that the clearance of FDA means validation of Paradigm’s safety data, the finished product’s quality and confirmation of an unmet medical need. The company’s future submissions include TGA Provisional Approval, Pre-IND (Investigational New Drug) meeting Phase 3 for osteoarthritis and Pre-IND for Phase 2/3 for the rare disease mucopolysaccharidosis, all anticipated by the end of Q4 CY19. The following picture depicts the results for the year ended 30^th June 2019:


Results Summary (Source: Company Reports)

Future Aspects:The company’s business modelis to repurpose the historic drug injectable pentosan polysulfate sodium for new clinical indications. It maintains a high focus on prudently managing shareholders’ funds while at the same time rapidly and efficiently executing on its clinical development plans. The Board of the company has made the decision to focus its resources on the lead clinical programs of osteoarthritis, alpha virus infection and the rare disease mucopolysaccharidosis.

Stock Recommendation:For FY19, the company reported a current ratio of 30.51x, which represents that the company is in a decent liquidity position. It reported asset to equity ratio of 1.03x in FY19 as compared to the industry median of 1.53x. Coming to the stock’s past performance, it delivered returns of 37.06% and 38.52% in the time period of one month and three months, respectively. Currently, it is priced close to its 52-week high level of $2.190. Therefore, in light of above-stated facts and current trading levels, we give a “Hold” recommendation on the stock at the current market price of A$2.020 per share (up 3.061% on 12^th September 2019).
 

OncoSil Medical Ltd

Decent Cash Position as at 30 June 2019:OncoSil Medical Ltd (ASX: OSL) is engaged in oncology research and development. It has a market capitalisation of A$51.72 Mn as on 12^th September 2019. The company recently announced that Dr Martin George Cross has made a change to his holdings in the company by acquiring 135,000 ordinary shares at the consideration of $9,986. The change was made on 5^th September 2019. The company reported cash and cash equivalents of $7.7 Mn and R&D Tax income refund of $3.8 Mn for the year ended 30^th June 2019. The following picture depicts an idea of profit & loss:

 
Profit & Loss Statement (Source: Company Reports)

Future Guidance:OncoSil Medical Ltd continues to progress towards achieving a CE Mark for its OncoSil™ device which would allow the future commercial sales in the European Union, Australia/New Zealand and certain parts of Asia. It was stated that when a CE Marking determination is made, OSL would be committed to a post marketing surveillance program.

Stock Recommendation:The current ratio of the company stood at 11.69x in FY19, reflecting YoY growth of 2.0%, which represent that the company has improved its position to address its short-term obligations. It posted asset to equity ratio of 1.09x in FY19 as compared to 1.10x in FY18. On the stock’s performance front, it produced returns of 20.59% and 34.43% in the time period of one month and three months, respectively. As per ASX, the stock is currently trading close to its 52 weeks low level of $0.021, and therefore, indicate an opportunity for accumulation. Hence, considering the above-stated facts and current trading levels, we give a “Speculative Buy” recommendation on the stock at the current market price of A$0.080 per share (down 2.439% on 12^th September 2019).

 
Comparative Price Chart (Source: Thomson Reuters)

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