First Berlin – Cyxone AB Research Update (17/09/2021)

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 16.00 price target.

Cyxone has published H1/21 results which were roughly as expected. EBIT came in at SEK-20.1m, close to our estimate of SEK-21.0m (H1/20: SEK-24.4m). In addition, the two main R&D drug candidates, Rabeximod for COVID-19 and rheumatoid arthritis (RA), and T20K for multiple sclerosis (MS) are making good progress. The company announced the completion of Rabeximod's phase II study in COVID-19 patients and plans to publish the results by the end of Q3 2021. Cyxone downsized the investigated patient population from the original plan of 300 to 90. The smaller sample size will be sufficient to provide the required statistical power. This measure compensated for a slowdown of the recruitment rate due to a falling number of COVID-19 hospitalised patients during the summer. Rabeximod's phase IIb study in RA is on track to start in Q4 2021. Cyxone also entered into a research collaboration with Prof. Christian Gruber, the inventor of T20K, and Prof. Gernot Schabbauer, an expert in MS animal models from the Medical University of Vienna. They will conduct a deep study of T20K's mode of action and the distribution of the compound in the body in connection with its optimal administration form (oral or subcutaneous). The preclinical study readout is planned for mid-2022. Based on unchanged estimates, we reiterate our Buy rating and SEK16.00 price target.