EDISON INVESTMENT RESEARCH LIMITED (LON:KEFI) Chimeric Therapeutics (CHM): Initiation - Scorpion venom CAR-T stalking GBM
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Edison Investment Research Limited
London, UK, 20 January 2021 Chimeric Therapeutics (CHM): Initiation - Scorpion venom CAR-T stalking GBM
Chimeric Therapeutics is a newly formed Australia-based biotechnology company with a focus on oncology that has recently gone public on the ASX. In September, Chimeric announced that it in-licensed CLTX-CAR T, currently in Phase I, from the City of Hope National Medical Center for US$10m (payable over 30 months) as well as milestones and royalties. The initial focus of the programme will be glioblastoma multiforme (GBM) but it can be applied to other tumours, such as melanoma.
We value Chimeric at A$307m or A$0.93 per basic share (A$0.87 per diluted share) using a risk-adjusted net present value (NPV) model. Key assumptions of our model include A$3,210m in peak sales, a launch in 2027 and a 10% probability of success due to the fact the programme is in Phase I. Following an IPO on the ASX, the company had A$36.9m in net cash and we estimate a need to raise an additional A$52.5m through 2026 to fund operations based on the current business plan, which, while modelled as illustrative debt, may lead to significant dilution if raised through equity depending on the prevailing stock price of such issuance(s).
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1161622 20-Jan-2021