Bionomics Limited

BNO Details
 
Positive Results from Clinical Trials of BNC210:  Bionomics Limited (ASX: BNO) is a pharmaceutical company which primarily focuses on clinical-stage biopharmaceutical segment. The company has a proprietary platform technology used for the discovery and development of novel drugs. Recently, the company announced positive results from the newly developed solid dose formulation of the drug BNC210. The drug was tested upon five healthy male volunteers, and the primary objective was to compare the pharmacokinetic profile of ascending doses of a tablet formulation of BNC210.

FY19 Operational Highlights for the year ending 30 June 2019: Bionomics Limited announced its FY19 results wherein, the company posted revenue of $4.03 million as compared to $3.95 million in the previous financial year while the company reported a loss of $9.67 million as compared to a loss of $25.09 million in FY18. The company posted other income of $7.61 million while research and development expense stood at $8.98 million as compared to $25.25 million in the previous year. During October 2018, BNO posted the results of Phase 2 clinical trial of BNC210, which was tested on 193 patients with Post Traumatic Stress Disorder across Australia and the US. As per tolerability and safety are concerned, BNC210 drugs results were excellent, but the primary endpoint was not met. During February 2019, the company conducted a data analysis in Sweden by Pharmetheus AB, which resulted in a positive response in the measurement of drug exposure versus response, conducted during the Phase 2 PTSD RESTORE Trial.


 
FY19 Financial Highlights (Source: Company Reports)

Outlook: The Management expects the solid results from Bionomics dose formulation pharmacokinetic study in early CY4Q 2019. The company expects feedback in early CY4Q 2019 from the Type C meeting with the FDA. The company is focusing on Bionomics on conserving cash to extend its cash runway.

Stock Recommendation: The stock of BNO is trading at $0.100 with a market capitalization of $45.75 million. The stock is inching towards the lower end of its 52-week trading range of $0.031 and $0.530. The stock has generated 127.03% and -49.09% in the last three-months and six-months, respectively. The stock has gained 71.43% in the last five trading sessions (excluding the gain as on 27 September 2019) on account of positive news from the clinical trial from phase2 Post-Traumatic Stress Disorder of BNC210. The stock is available at an enterprise value to sales multiple of 2.9x on trailing twelve months (TTM) basis as compared to the industry median of 9.8x. A recent development from the clinical trials of the company’s novel drug BNC210 is progressing as per the Management guidance, and the company is looking to revamp shareholders’ value through several new studies. Considering the aforesaid facts along with the current trading levels, valuation and business perspectives, we recommend a ‘Speculative Buy’ rating on the stock at the current market price $0.100, up 19.048% on account of positive feedback from the recent clinical trial.

 
BNO Daily Technical Chart (Source: Thomson Reuters)
 

Adslot Ltd

ADJ Details
 
Robust Growth Across all Segments: Adslot Ltd (ASX: ADJ) is an information technology company which focuses on developing a media trading technology platform Adslot and SaaS (Software as a service) business providing workflow automation technology named, Symphony. The company generated incomes from its two operating segments, i.e., Licence Fees and Trading Fees. Recently, ADJ announced the issuance of new security options amounting 11,900,000 with an exercise price of $0.041 as per 145% of seven-day VWAP.

FY19 Performance Highlights: ADJ declared its full-year results for FY19 wherein, it posted revenue of $10.3 million, a 28% increase on FY18 and a net loss of $7.04 million as compared to a loss of $11.65 million during FY18. Revenue growth was aided by robust yoy growth of 153% and 58% from trading fees and license fee segments. The company has successfully lowered its operating costs during the period by 10% on pcp. EBITDA loss was reduced by 59% on y-o-y from $6.34 million to EBITDA loss of $2.62 million while operating costs were reduced by 10% on y-o-y basis. The business reported the inclusion of top 50 publishers, representing about 50% of the Comscore in the Adslot Media marketplace in the US. The company is focusing on building a strong pipeline of publishers across key geographies like the UK and US and expansion in primary verticals like Health, Automotive etc.
 

Snapshot of Operating Cost from FY15-FY19 (Source: Company Reports)

Outlook: The Management is looking to execute Master Service Agreements with the six global agency holding companies and activate their demand. To meet the growing demand, the company will be looking for expanding the supply-base of Adslot Media marketplace. The company will maintain its focus on cost management during FY20.

Stock Recommendation: The stock of ADJ is trading at $0.027 with a market capitalization of $42.88 million. The stock has given a negative return of 15.63% and 42.55% during the last six-months and twelve months, respectively. The stock is available at an enterprise value to sales multiple of 3.4x on trailing twelve months basis (TTM) basis as compared to its industry median of 4.4x. The company reported an improvement of 40% in its bottom-line on y-o-y basis. During FY19, the company has delivered robust business growth in each of its segment, while the Management is also focusing on the reduction of the operating costs by ~10% for FY20. Considering the business prospects and current trading levels, we recommend a ‘Speculative Buy’ rating on the stock at the current market price of $0.027, with no change as on 27 September 2019.

 
 ADJ Daily Technical Chart (Source: Thomson Reuters)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.