XINTELA
Xintela: Closing in on the first license agreement (Västra Hamnen)
• Non-binding term sheet with EQGen Biomedical regarding EQSTEM
• The financial situation is still an issue
• We keep the fair value at SEK 1.30 per share
In connection with the Q1 report, Xintela announced a signed, non-binding term sheet with the US firm EQGen Biomedical regarding EQSTEM, Xintela’s veterinarian joint disease treatment. We expect details to be disclosed once EQGen Biomedical secures funding and the parties announce a license agreement.
We therefore maintain our risk-adjusted motivated value of SEK 1.30 per share. The full report is available here.
In connection with the Q1 report, Xintela announced a signed, non-binding term sheet with the US firm EQGen Biomedical regarding EQSTEM, Xintela’s veterinarian joint disease treatment. We expect details to be disclosed once EQGen Biomedical secures funding and the parties announce a license agreement.
Xintela also reported progress in its XSTEM projects. In the knee osteoarthritis (OA) study, all patients in the first dose group completed the study 18 months after treatment. We expect the second and third groups to complete the study during the second half of 2024. The company is in discussions with potential licensees, a deal would have a significant effect on Xintela’s valuation.
In the difficult-to-heal venous leg ulcer (VLU) study with XSTEM, the first patient completed the study. Patients have been dosed and recruitment is ongoing. In our forecast, we expect the study to be completed in Q4 2024.
Given the company's financial situation, Xintela would greatly benefit if a deal with EQGen Biomedical could be presented before the end of the half-year. Our model suggests a risk-adjusted discounted value of EQSTEM of 85 MSEK, corresponding to SEK 0.15 per share.
The financial situation is still an issue. As mentioned in our last comment, the company secured a loan of MSEK 16.5 from Flerie Invest. The subscription period of the warrant TO3 is currently ongoing, ending on June 5. The previous subscription brought MSEK 6.3 to the company. Without a licensing deal or added funds from TO3, we forecast a financing round in Q3.
Despite the financial risk, we see significant potential in Xintela’s projects compared to the current market cap. As we update our timelines slightly, we push some of the R&D costs forward in our financial forecast. The adjustments do not affect the fair value, which we keep at SEK 1.30 per share.
Analysen gör en nulägesvärdering på Xintela och får ett motiverat värde per aktie till 1,30.
Ja nu verkar det hända grejer och 1.3kr tycker är jag är lågt räknat. Det blir en spännande Q4 iår. Även om det skulle dra ut på tiden till Q1-25
SvaraRaderahttps://www.hummingbirdbiomedical.com/portfolio
SvaraRaderaEQGEN Biomedical
Our first portfolio company is EQGEN Biomedical which has a license from Xintela AB to develop an allogenic stem cell product for treating osteoarthritis (OA) and lameness in horses, dogs and camels. It is based on a unique marker technology which enables disease modification of OA. It has been tested in horses and shows promising results. The next step is to perform trials to bring the product on the market.
Licensavtal verkar var klart men inget PM än. Vad kan värdet bli då ?