First Berlin – Cyxone AB Research Update (01/07/2019)

First Berlin Equity Research has published a research update on Cyxone AB (ISIN: SE0007815428). Analyst Christian Orquera reiterated his BUY rating and maintained his SEK 13.50 price target.

Cyxone has announced that T20K, its prophylactic oral drug candidate for multiple sclerosis (MS), has progressed to a first-in-human, Phase I clinical trial. This is good news as the company has achieved a significant milestone and expanded its clinical pipeline. The study design has been approved by the Ethics Committee and Central Commission on Research Involving Human Subjects (CCMO) in the Netherlands. The double-blinded, single centre study in the Netherlands is designed to evaluate the level of T20K in the blood after administering one or two doses of the substance in healthy subjects and also investigate safety and tolerability. T20K will be administered to healthy male volunteers by intravenous infusion. The trial will be carried out in cooperation with the clinical research organization (CRO) QPS Netherlands. Cyxone has initiated the recruitment and screening of volunteers for the study. The first cohort will receive the initial T20K dose in July 2019. Completion of the study is planned for H2/19. Meanwhile, the Phase IIb study of lead drug candidate Rabeximod in rheumatoid arthritis (RA) is progressing as anticipated. However, we have revised down our 2019-2021 financial forecasts because Q1/19 results showed higher costs than anticipated. Following the achievement of the pipeline milestone and our slight projections downgrade, our SOTP valuation model produces an unchanged price target of SEK 13.50. We reiterate our Buy rating.