e-Therapeutics (ETX) grabbed investor attention in February 2011 after completing one of that year's few large biotechnology fundrasings. That placing raised £21m - a move that gave Invesco Asset Management a 47.7 per cent stake in the company. With plenty of cash - and as e-Therpaeutics reorganises its diverse development pipeline into one that's focused on difficult to treat cancers - the shares boast speculative potential.
So far, e-Thareapeutics has launched early-stage US trials for its lead brain cancer drug ETS2101, along with a parallel UK trial on solid tumours - first results are expected for brain cancer at end-2013 and for solid tumours in early 2014. Management also streamlined the pipeline by axing the ETX1153a MRSA infection product after reassessing the market's size. The most clinically advanced product is ETS6103 for depression, which is in a Phase IIb trial that's due to report early next year - that had been delayed by production problems with the tablet form of the medicine. Management's strategy is to partner products once enough data is available to interest potential collaborators. Even without revenues from partnership deals, e-Therapeutics boasts enough cash to last through to mid-2014.
Housebroker Panmure Gordon forecasts a full-year loss per share of 3.36p (2012: 2.49p loss per share).
E-THERAPEUTICS (ETX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 37.8p | MARKET VALUE: | £52.2m | |
| TOUCH: | 37-38.5p | 12-MONTH HIGH: | 46.5p | LOW: 25p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 9p | NET CASH: | £11.7m* | |
| Half-year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | nil | -1.79 | -1.25 | nil |
| 2012 | nil | -2.16 | -1.33 | nil |
| % change | - | - | - | - |
Ex-div:- Payment:- *Includes £6.1m of fixed-term deposits | ||||
