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(SCOL) Scandion Oncology — A defining year ahead for SCO-101
Scandion Oncology is focused on the development of add-on therapies to reverse chemotherapy resistance in oncology. Lead asset SCO-101 is in a Phase II trial for mCRC and a Phase Ib trial for pancreatic cancer.

Scandion’s Q422 and FY22 results highlighted the significance of the upcoming year, with key clinical milestones expected for its lead asset SCO-101. The first of these comes in the form of top-line readouts from the Phase Ib PANTAX study in pancreatic cancer (PC), which is expected in H123. These will be closely followed by top-line results from part 3 of the Phase IIb CORIST study in metastatic colorectal cancer (mCRC), expected in Q323.

Edison Group
Scandion Oncology — A defining year ahead for SCO-101
Scandion’s Q422 and FY22 results highlighted the significance of the upcoming year, with key clinical milestones expected for its lead asset SCO-101. The first of these comes in the form of top-line readouts from the Phase Ib PANTAX study in pancreatic cancer (PC), which is expected in H123. These will be closely followed by top-line results from part 3 of the Phase IIb CORIST study in metastatic colorectal cancer (mCRC), expected in Q323. Management has communicated that patient recruitment in each of these studies is continuing as planned, which, in our view, is a positive indicator that the trials are on track to deliver readouts against these timelines. At end-December 2022 Scandion had a net cash position of DKK77.6m, which management has guided will provide a cash runway into FY24. We have updated our estimates and rolled our model forward and now value Scandion at SEK238.2m or SEK5.8/share (versus SEK241.1m or SEK5.9/share previously).

(ALK) Alkane Resources — Tomingley Gold Extension Project approved
Alkane Resources has two main assets in Central West New South Wales: the Tomingley gold mine, where recent exploration has increased the mine life by at least eight years, from FY23 to FY31, and its Northern Molong Porphyry project, which is shaping up to be a tier 1 alkalic porphyry district.

As expected, the NSW Minister for Planning has approved Alkane’s Tomingley Gold Extension Project, allowing both open-cut mining at the Roswell and San Antonio deposits (including underground mining at the former) and extending the mine life to 2032. The approval accepts a processing rate of up to 1.75Mtpa, with underground mining due to commence at Roswell before the end of CY23. Financing has been secured via A$50m of debt funding from Macquarie Bank, together with 100koz of gold hedging at a weighted average price of A$2,825/oz (US$1,928/oz).

Edison Group
Alkane Resources — Tomingley Gold Extension Project approved
As expected, the NSW Minister for Planning has approved Alkane’s Tomingley Gold Extension Project, allowing both open-cut mining at the Roswell and San Antonio deposits (including underground mining at the former) and extending the mine life to 2032. The approval accepts a processing rate of up to 1.75Mtpa, with underground mining due to commence at Roswell before the end of CY23. Financing has been secured via A$50m of debt funding from Macquarie Bank, together with 100koz of gold hedging at a weighted average price of A$2,825/oz (US$1,928/oz).

(IMMU) Mendus — Multi-front progression during FY23
Mendus is a clinical-stage immunoncology (IO) company based in Sweden and the Netherlands. The company specialises in allogeneic dendritic cell (DC) biology and currently has two lead, cell-based, off-the-shelf therapies for haematological and solid tumours.

FY22 was marked by several clinical milestones for Mendus, notably the positive survival data from the Phase II ADVANCE II study in acute myeloid leukaemia (AML) and encouraging safety data from the ongoing Phase I ALISON trial (in ovarian cancer), both investigating the company’s lead cancer vaccine candidate, vididencel (DCP-001).

Edison Group
Mendus — Multi-front progression during FY22
FY22 was marked by several clinical milestones for Mendus, notably the positive survival data from the Phase II ADVANCE II study in acute myeloid leukaemia (AML) and encouraging safety data from the ongoing Phase I ALISON trial (in ovarian cancer), both investigating the company’s lead cancer vaccine candidate, vididencel (DCP-001). In 2023, we expect Mendus to focus on progressing vididencel in the AML maintenance setting, as it plans a Phase I study in AML patients post-hematopoietic stem cell transplantation (HSCT) and a Phase II trial in combination with standard of care azacitidine in AML maintenance. In our view, combination therapies will be critical for clinical breakthroughs in oncology, so we see the initiation of such a Phase II study as a sensible strategic decision. The August 2022 SEK250m fund-raising facility may fund operations past anticipated completion of these studies (in H224) albeit with significant dilution risk. Our valuation increases to SEK1.9bn or SEK9.31/share (SEK1.8bn or SEK9.1/share previously), although the valuation per share would reduce with subsequent debt-to-equity conversions.

(DTCJ) Datatec — Focus on Westcon International
Datatec is a South Africa-listed multinational ICT business, serving clients globally, predominantly in the networking and telecoms sectors. The group operates through three main divisions: Westcon International (distribution); Logicalis International (IT services); and Logicalis LatAm (IT services in Latin America).

Since embarking on a restructuring of the Westcon International (Westcon) division in FY18, management has grown divisional revenue at a CAGR of 5.7% (FY18–22) and improved profitability. Westcon has set ambitious targets in its latest medium-term plan (FY23–27), supported by its ongoing digital transformation programme. With our valuation of Westcon higher than the current enterprise value of the group, we believe that successful achievement of this plan could unlock significant shareholder value.

Edison Group
Datatec — Focus on Westcon International
Since embarking on a restructuring of the Westcon International (Westcon) division in FY18, management has grown divisional revenue at a CAGR of 5.7% (FY18–22) and improved profitability. Westcon has set ambitious targets in its latest medium-term plan (FY23–27), supported by its ongoing digital transformation programme. With our valuation of Westcon higher than the current enterprise value of the group, we believe that successful achievement of this plan could unlock significant shareholder value.

(CREI) Custodian Property Income REIT — Positive income indicators in a challenging market
Custodian Property Income REIT (CREI) is a London Main Market-listed REIT focused on commercial property in the UK outside London. It is income-focused, with a commitment to pay a high but sustainable and covered dividend.

In Q323, Custodian Property Income REIT (CREI) continued to capture occupational demand, lease vacant space across all sectors and grow rental income. This underpins fully covered dividends and provided a partial offset to strong market-wide pressure on property valuations. Moderate gearing mitigated the impact on NAV, while income is protected by 80% of drawn debt having a fixed cost.

Edison Group
Custodian Property Income REIT — Positive income indicators in a challenging market
In Q323, Custodian Property Income REIT (CREI) continued to capture occupational demand, lease vacant space across all sectors and grow rental income. This underpins fully covered dividends and provided a partial offset to strong market-wide pressure on property valuations. Moderate gearing mitigated the impact on NAV, while income is protected by 80% of drawn debt having a fixed cost.

(ULTI) Ultimovacs — Gathering steam with multiple inflections in FY23
Ultimovacs is developing novel immunotherapies against cancer. Lead product candidate, UV1, is a peptide-based vaccine against the universal cancer antigen telomerase, which is expressed by c 85% of all cancer types. UV1 therefore has a broad potential in a variety of different settings and combinations.

Ultimovacs’ Q422 and FY22 results reflected another busy period marked by continued development of its lead cancer vaccine, UV1, across multiple indications. Top-line results from the Phase II clinical trials INITIUM (in metastatic malignant melanoma) and NIPU (in metastatic pleural mesothelioma) are expected in H123 and are key catalysts for a potential licensing deal, should data be positive. Another clinical milestone will be the readout from the Phase I TENDU trial (prostate cancer), expected in H223. However, data readouts for the other Phase II trials have been adjusted due to the delayed initiation of DOVACC, change in standard of care for LUNGVAC and a minor delay in FOCUS (end FY23 to H124). We roll forward our model and adjust our estimates, resulting in a valuation of NOK7.4bn or NOK216/share (NOK7.9bn or NOK231/share previously). Our estimates do not include consideration for preclinical assets, which may offer upside on successful clinical progress. The end-FY22 cash position stood at NOK425.3m, which should provide funding to mid-2024, according to management.

Edison Group
Ultimovacs — Gathering steam with multiple inflections in FY23
Ultimovacs’ Q422 and FY22 results reflected another busy period marked by continued development of its lead cancer vaccine, UV1, across multiple indications. Top-line results from the Phase II clinical trials INITIUM (in metastatic malignant melanoma) and NIPU (in metastatic pleural mesothelioma) are expected in H123 and are key catalysts for a potential licensing deal, should data be positive. Another clinical milestone will be the readout from the Phase I TENDU trial (prostate cancer), expected in H223. However, data readouts for the other Phase II trials have been adjusted due to the delayed initiation of DOVACC, change in standard of care for LUNGVAC and a minor delay in FOCUS (end FY23 to H124). We roll forward our model and adjust our estimates, resulting in a valuation of NOK7.4bn or NOK216/share (NOK7.9bn or NOK231/share previously). Our estimates do not include consideration for preclinical assets, which may offer upside on successful clinical progress. The end-FY22 cash position stood at NOK425.3m, which should provide funding to mid-2024, according to management.

(RSH) Respiri — wheezo included in paediatric standard of care
Respiri is an Australia-based medical device and SaaS company focused on respiratory health management through its integrated wheezo platform. Its technology records data such as wheeze rates, breath recordings and other environmental factors and medication usage. Wheezo was launched in the US in December 2021.

Respiri has announced the successful completion of the Michigan Children’s Hospital’s pilot programme assessing the wheezo SAAS (Respiri and partner Access Telehealth) platform. The initial March 2022 agreement enabled pulmonologists to employ wheezo to increase the engagement of paediatric patients with asthma. The hospital will include the wheezo RPM programme in its current standard of care for eligible asthma patients. We expect the paediatric population to be one of the cohorts to find the most utility from the wheezo monitoring protocol (given this population is not always able to self-identify and flag symptoms) and usage feedback from these patients is anticipated to be crucial for Respiri. We also note the Michigan Children’s Hospital is a part of the of the NYSE-listed Tenet Healthcare Corporation (over 60 hospitals across the US) and uptake, if encouraging, can support a broader roll out.

Edison Group
Respiri — wheezo included in paediatric standard of care
Respiri has announced the successful completion of the Michigan Children’s Hospital’s pilot programme assessing the wheezo SAAS (Respiri and partner Access Telehealth) platform. The initial March 2022 agreement enabled pulmonologists to employ wheezo to increase the engagement of paediatric patients with asthma. The hospital will include the wheezo RPM programme in its current standard of care for eligible asthma patients. We expect the paediatric population to be one of the cohorts to find the most utility from the wheezo monitoring protocol (given this population is not always able to self-identify and flag symptoms) and usage feedback from these patients is anticipated to be crucial for Respiri. We also note the Michigan Children’s Hospital is a part of the of the NYSE-listed Tenet Healthcare Corporation (over 60 hospitals across the US) and uptake, if encouraging, can support a broader roll out.

$AEM Agnico Eagle Mines — A record-breaking year
Agnico Eagle operates eight mines in Canada, Finland and Mexico and is among the top 15 largest gold mining companies in the world. It seeks to build a high-quality business that generates superior long-term returns for shareholders and contributes to the communities in which it operates.

FY22 marked a record-breaking year for Agnico Eagle Mines (AEM) after its Kirkland Lake acquisition, achieving annual gold production of 3,281koz at a US$780/oz total cash cost and a US$1,090/oz all-in sustaining cost (AISC). In Q422, AEM delivered strong gold production of 799koz at a US$863/oz cash cost, despite inflationary pressure and reduced production at LaRonde, Kittila and Pinos Altos. AEM’s quarterly dividend was maintained at US$0.40/share and it expects its recently announced acquisition of Yamana’s Canadian assets to close in March.

Edison Group
Agnico Eagle Mines — A record-breaking year
FY22 marked a record-breaking year for Agnico Eagle Mines (AEM) after its Kirkland Lake acquisition, achieving annual gold production of 3,281koz at a US$780/oz total cash cost and a US$1,090/oz all-in sustaining cost (AISC). In Q422, AEM delivered strong gold production of 799koz at a US$863/oz cash cost, despite inflationary pressure and reduced production at LaRonde, Kittila and Pinos Altos. AEM’s quarterly dividend was maintained at US$0.40/share and it expects its recently announced acquisition of Yamana’s Canadian assets to close in March.

(CREO) Creo Medical — Around £30m raised in 48 hours to back growth plans
UK-based Creo Medical focuses on the development and commercialisation of minimally invasive electrosurgical devices. Its six products in the flagship CROMA platform have all been CE marked, with five cleared by the FDA. In 2020 Creo acquired Albyn Medical, which provides it with profitable products and a direct salesforce in Europe.

In a bid to strengthen its balance sheet and support development programmes, Creo has announced a £28.5m (£26.8m net proceeds) fund- raise through institutional investors by placing 142.5m new ordinary shares at 20p/share (a 28% discount to the 15 February closing price). The fund-raising, subject to shareholder approval (AGM expected on 8 March), was oversubscribed against the minimum target of £25m, indicating strong shareholder support. In addition, Creo has announced an open offer to shareholders to raise another £5.2m in funds via the conditional issue of c 26m ordinary shares. Creo plans to use these funds to support its commercialisation plans, ongoing R&D efforts, licensing and partnering opportunities as well as working capital requirements. Notably, we estimate these funds to be sufficient to take Creo to net profitability (H126 as per our projections). We will incorporate the fund-raise into our estimates following shareholder approval and completion of the process.

Edison Group
Creo Medical — Around £30m raised in 48 hours to back growth plans
In a bid to strengthen its balance sheet and support development programmes, Creo has announced a £28.5m (£26.8m net proceeds) fund- raise through institutional investors by placing 142.5m new ordinary shares at 20p/share (a 28% discount to the 15 February closing price). The fund-raising, subject to shareholder approval (AGM expected on 8 March), was oversubscribed against the minimum target of £25m, indicating strong shareholder support. In addition, Creo has announced an open offer to shareholders to raise another £5.2m in funds via the conditional issue of c 26m ordinary shares. Creo plans to use these funds to support its commercialisation plans, ongoing R&D efforts, licensing and partnering opportunities as well as working capital requirements. Notably, we estimate these funds to be sufficient to take Creo to net profitability (H126 as per our projections). We will incorporate the fund-raise into our estimates following shareholder approval and completion of the process.

(GROW) Molten Ventures — Key takeaways from the 2023 capital markets day
Molten Ventures is a London-based venture capital (VC) firm that invests in the European technology sector. It has a portfolio of c 70 investee companies and includes a range of funds (seed, EIS and VCT) within the group, as well as its flagship balance sheet VC fund.

At its capital markets day (CMD) Molten Ventures highlighted its successful growth since it listed in 2016, having grown its gross portfolio value by a CAGR of 59% (supported by several capital raises). We note that Molten posted a six-year NAV total return (TR) to end-September 2022 of c 15% pa. Since IPO, Molten has deployed an average £133m in capital per year (excluding secondary investments) and received £452m in total realisation proceeds. Portfolio growth has been underpinned by the 24% pa growth in European venture capital (VC) series A, B and C deal volumes (Molten’s ‘sweet spot’) between 2015 and 2022 (based on PitchBook data).


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