Think tank the Milken Institute is currently tracking over 200 potential Covid-19 treatments. One such candidate is SNG001, an inhalable drug produced by Aim-listed biotech minnow Synairgen (SNG). Following news in mid-March that SNG001 had been approved for testing in hospital patients, the shares have been on a tear, more than doubling in value to 50p.
SNG001 is based on ‘interferon-beta-1a’, a protein produced by our bodies to fight back against viruses. Coronavirus suppresses natural production of this protein to evade our immune system. Synairgen’s fine spray aims to counteract this by delivering it directly to the lungs. It could prove particularly useful to ‘at-risk’ patients with pre-existing conditions.
Initial data from the hospital study is expected in July and it is being financed by £14m raised through an oversubscribed share placing. The trial is also being extended to the home setting to treat people within three days of developing symptoms and prevent the progression to severe lower respiratory tract illnesses such as pneumonia.
Synairgen says that should there be a positive outcome, it could supply “meaningful quantities” by the end of the year. In the meantime, as it continues investing in research and development, operating losses for the year ending 31 December widened by 17 per cent to £4.8m, while net cash (excluding lease liabilities) more than halved.
| SYNAIRGEN (SNG) | ||||
| ORD PRICE: | 50p | MARKET VALUE: | £ 75.3m | |
| TOUCH: | 49.9-50.9p | 12-MONTH HIGH: | 78p | LOW: 5.5p |
| DIVIDEND YIELD: | NA | PE RATIO: | NA | |
| NET ASSET VALUE: | 255p* | NET CASH: | £2.1m* | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 0.03 | -2.56 | -2.47 | nil |
| 2016 | nil | -3.40 | -3.08 | nil |
| 2017 | 5.03 | 1.63 | 1.93 | nil |
| 2018 | 0.11 | -4.10 | -3.47 | nil |
| 2019 | nil | -4.79 | -3.55 | nil |
| % change | - | +17 | +2 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes £0.3m in lease liabilities | ||||
