Targovax: Strengthens its financials
Mar 22 2019
Late last night a private placement was completed, raising approximately NOK 70m. The subscription price was at NOK 7, and 10,5m new shares are about to be issued (dilution of about 20% to existing shareholders). The funding extends Targovax cash runway into Q3 2020.
The share price takes a deep-dive in the early trading at Oslo Börs and the stock is down by more than 30%. It’s an understandable share price reaction, given the high discount of the subscription price compared to previous close (NOK 11.2).
At the end of Q4 2018, cash and cash equivalents totaled NOK 151m. Adding in the NOK 70m from the capital raise, total cash and cash equivalents amounts to SEK 221m, which should be sufficient to run planned operations into Q3 2020.
The key value driver is the lead asset Oncos-102, which is being evaluated in four ongoing clinical trials. Several key value inflection points for Oncos-102 approaching in the next 6-12 months:
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Further ORR and immune data from the first cohort of the ongoing combination trial in melanoma is expected in Q2 2019
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In H1 2020 we expect Targovax to report randomized ORR data from the ongoing mesothelioma trial were Oncos-102 is being evaluated in combination with standard of care (pemetrexed/cisplatin)
