52p a share21 Oct 2024 06:56
Two tests now available commercially EpiSwitch CiRT addresses the clear need to help guide immuno-oncology treatments, accurately differentiating between non-responders and responders, and so avoiding unnecessary side-effects and costs. EpiSwitch PSE is, in our view, the commercially more relevant diagnostic that targets the large prostate cancer audience, improving identification of tumours, avoiding costly and invasive biopsies, and bringing precision to a currently uncertain diagnosis journey. Two additional tests, for colon cancer and canine cancers, are ready for partnering or out-licensing.
Modest share of such markets could be transformative Having successfully developed its lead products, management’s focus is on the execution of commercialisation plans, and securing the necessary funds to deliver on the potential of these tests. These are large markets and, despite the challenges in gaining clinical traction in such competitive segments, even a small share would be meaningful. Importantly, uptake in these indications would also highlight the advantages and benefits of EpiSwitch for development partnering.
We initiate with a valuation of £162m or 52p per share We value Oxford BioDynamics using a three-phase DCF based on peak future testing volumes. We initiate coverage with a valuation of £162/$203m, equivalent to 52p per share.