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NORDIC NANOVECTOR
PARADIGME on track
Nordic Nanovector reported its Q2 operating results on
22 August, and the loss of cNOK85m was broadly in line
with our forecast of cNOK87m. As of 21 August the
company had 41 sites across 13 countries open for
enrolment in the PARADIGME trial, in line with our
expectations. No US sites have yet opened but they are
expected to do so within a month. We reiterate our BUY
and NOK110 target price.
Earnings (loss) in line with expectations. The company reported an operating loss
of cNOK85m (we forecast cNOK-87m). At quarter-end it had cNOK570m of cash on
the balance sheet, slightly more than our cNOK555m forecast. In the report, the
company reiterated it had enough funds to get it through the most important event in
the upcoming years (data read-out from PARADIGME trial in H1 2020e).
Positive update on PARADIGME. The company said in June the first patient in the
trial had been dosed and at its Q2 results presentation it said that 41 centres across
13 countries were open and enrolling patients. The target is c80–85 centres globally in
the trial. The first US centre is expected by the company to be open within a month.
New CEO enters the stage. In June, the company said it had appointed Mr Eduardo
Bravo as its new CEO. The Q2 report was his first large presentation to the market
and we believe he gave a competent and solid first impression (despite being only six
weeks in to the job). In our view, the company needs to continue to communicate
more effectively than in the past, and we believe the Q2 report was a clear step in the
right direction.
We believe the next important catalyst will be the ASH meeting in December, at
which we expect the company to present full data from the LYMRIT 37-01 trial; and we
are eager to see the results concerning the duration of response. We believe the
overall ORR and CR levels will be in line with previous results but the DoR should see
a clear improvement with a longer follow-up.
BUY and NOK110 target price reiterated. There was no data in the report or the
company’s comments that prompted us to change our view on the stock or the
prospects for the company.