Just a reminder of the House Brokers valuation of the current COPD trial involving SNG001..

SNG001 is valued at c.£41m (39p per share) on a risk-adjusted basis, using the following assumptions in our DCF:
 £1bn peak sales; given the size of the market, peak sales could be substantially higher.
 15% probability of successfully reaching the market.
 15% royalty rate, assuming the product is licensed at this post-Phase IIa; this will rise should SNG001 successfully complete Phase IIb to c.20%.
 Discount rate of 10%.
This excludes any upfront payment that Synairgen would be expected to receive if it
licensed at the end of Phase IIa.
Successful completion of the proposed Phase IIa study implies a rNPV of c.£100m, which would imply a c.£60m uplift on the current estimated NPV, at a cost of completing the study of c.£5.5m, which is fully funded by the current cash position.
Synairgen confirmed that it maintains an ongoing dialogue with several large pharma
companies who are awaiting the outcome of these Phase IIa data, which will hopefully trigger future partnering/licensing activity for a future Phase IIb trial.

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