AdAlta Limited

1AD Details

AdAlta Limited (ASX: 1AD) is a clinical-stage drug discovery and development company with a focus to use its i-body technology platform to generate a broad portfolio of i-body enabled drugs.

Result Performance – For the Fiscal Year Ended 30^th June 2021 – (FY21)

• Total Revenue stood at $3.99 million in FY21 versus $3.85 million in FY20
• The loss for the company after providing for income tax stood at $5.63 million (FY20: $6.01 million)
• The company closed the year with $5.79 million of cash at bank on 30^th June 2021.

Key Data (Source: Company Reports) 

Outlook:

In FY22, the company will focus on clinical studies of AD-214 in patients by developing an inhaled formulation of AD-214. Further, will continue its pre-clinical studies of AD-214 in other fibrotic indications and cancer. The company is expected to support, manufacturing process development for granzyme B binding i-bodies with GE Healthcare. Also, it initiated discovery and optimization of i-bodies against the first two targets selected for the Carina collaboration. It is initiating i-body discovery on two new GPCR targets for AdAlta’s internal pipeline and developing i-body for platform continuous improvement initiatives.

Key Risks:

The company is susceptible to financial risks, market risk (fair value interest rate risk and price risk), credit risk, liquidity risk, and cash flow interest rate risk. The company’s overall risk management strategy focuses on the unpredictability of financial markets and seeks to reduce potential adverse effects on the financial performance of the company.

Stock Recommendation

The stock reported 9-month and 1-year returns of ~-22.6% and ~-13.3%, respectively. The 52-week high price of the stock is $0.265 and 52-week low price is $0.080.

Considering the aforementioned factors along with its current trading levels, and risk of clinical studies of products under development, we advise the investors to liquidate the stock.

Thus, we give a “Sell” recommendation on the stock at the current market price of $0.105 per share, (Time: 11:41 AM (GMT+10), Sydney, Australia) on 31^st August 2021.

Technical Chart:

Source: REFINITIV, Purple color line reflects Relative Strength Index (14-Period) while the green color line represents 21-Period SMA.

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.

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