First Berlin – Cyxone AB Research Update (22/02/2021)

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 interim FY/20 results which are slightly ahead of our expectations. EBIT came in at SEK-48.9m, compared to our estimate of SEK-49.5m. Due in part to the successful Q4/20 share issue, which raised SEK41m, the company reported a solid cash position of SEK56.3m, slightly above our estimate of SEK55.0m. Importantly, Rabeximod's phase II study to treat COVID-19 is making progress. On January 15, the first patient recruited in Poland was screened, and the company has also filed for approval to carry out the trial in Slovakia, Hungary and Ukraine. Applications in additional EU countries are in preparation. These measures should allow the company to complete the study in 300 patients and publish preliminary results as scheduled in Q3/21. If the results are positive, the drug candidate could qualify for emergency use authorisation (EUA), leading to market launch in H1/22. Furthermore, preparations for the next steps in the two main R&D programmes, Rabeximod for rheumatoid arthritis (RA) and T20K for multiple sclerosis (MS), are progressing as anticipated. The company is currently finalising the optimised phase IIb trial design for Rabeximod in RA. This optimisation should lead to an increase in the product's value. Cyxone is also conducting additional preclinical and formulation studies which will facilitate the optimal formulation of T20K. Rabeximod's phase IIb trial in RA and T20K's phase I study in MS are both on track to start in H2 2021. Based on unchanged estimates, we reiterate our Buy rating and SEK16.00 price target.