Fra DnB nå:
Raised more capital to extend cash position into 2021 . The company has raised cNOK243m to complete the recruitment of the PARADIGME trial and reach the first data readout. With its current burn rate (cNOK100m in Q2) and cash position of cNOK440m after Q2, the share issue should increase the cash position to cNOK575m at the end of Q3e (given cNOK100m burn rate in Q3 and c5% fee on the share issue). We believe this should last into H1 2021 and possibly until the data readout (expected in H1 2021).
Recruitment in PARADIGME expected to be completed in H2 2020 . The company delayed the estimated completion of enrolment in the PARADIGME trial to H2 2020 in connection with its Q2 report. In connection with the share issue, it announced that 32 patients had been enrolled in the trial, or c25%. This is in line with our estimate. It also said the recruitment rate was in line with similar trials (we believe that the company aims for a recruitment rate of c1patient/clinic/year on average). If this rate continues to be stable, the company should be able to deliver on its new timelines.
Should continue reporting trial’s progress . To help increase investor confidence in the company, we believe Nordic Nanovector should continue reporting the progress from the PARADIGME trial (for example, when recruitment reaches 50% and 75%). This is especially important in a company that is dependent on the stock market to finance its operations, we believe. Given Nordic Nanovector’s consistently strong data and Betalutin’s easy administration and benign side-effect profile, we believe there is a high likelihood that the drug will reach the market. The key focus now is executing on the PARADIGME trial and completing the recruitment on time.
Valuation and recommendation . Due to DNB Markets’ role in the private placement and the subsequent offering in Nordic Nanovector, we have no recommendation or target price.
