First Berlin – Cyxone AB Research Update (06/09/2019)

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 published H1/19 results which were close to our expectations. EBIT came in at SEK-9.1m, in line with our estimate of SEK-9.2m (H1/18: SEK-6.5m). In addition, the two main R&D programmes, T20K for multiple sclerosis (MS) and Rabeximod for rheumatoid arthritis (RA) are progressing as anticipated. The company announced the successful completion of the first-in-man Phase Ia study with T20K. As requested by the regulatory authorities, this study used an intravenous (i.v.) infusion. The study demonstrated that T20K is safe for human use, and free circulation of the drug candidate in the blood does not cause unwanted side effects. This is very good news. The company is now authorised to proceed with the investigation of the target oral formulation within the scope of a Phase Ib study. Cyxone has also applied to the regulatory authority in Poland for permission to initiate a Phase IIb study of Rabeximod. Feedback was positive. Applications in up to eight European countries will follow during the next six months. Patient recruitment is planned to start in H1 2020. Based on unchanged estimates, we reiterate our price target of SEK13.50 and our Buy rating.