First Berlin – Cyxone AB Research Update (08/09/2020)

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 12.70 price target.

Abstract
Cyxone published H1/20 results which were roughly in line with our expectations. EBIT amounted to SEK -24.4m – in line with our estimate of SEK -23.5m (H1/19: SEK -13.4m). The two main R&D programmes, Rabeximod for rheumatoid arthritis (RA) and T20K for multiple sclerosis (MS), are progressing as scheduled. On 10 June, the company filed four patent applications to expand IP protection of the lead drug candidate Rabeximod. To strengthen its drug development expertise, the company hired Christin Arrhenius Bokedal as Head of Development as well as Dr Maarten Kraan and Professor Rikard Holmdahl both as Senior Scientific Advisors. In connection with the recent licensing agreement for the development of a new COVID-19 treatment, Cyxone raised SEK 0.9m from an investor related to the licensors network. Based on unchanged estimates, we reiterate our price target of SEK 12.70 and our Buy rating.