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.