Nanexa - Adding another layer to drug development
Novel drug formulation technology for sustained release Dual business strategy: product & tech licensing Initiating coverage with fair value range of SEK 5-18 Proprietary PharmaShell® technology for encapsulating drugs Nanexa has developed a novel drug-delivery platform technology called PharmaShell® for encapsulating drugs and making them into long-acting sustained release formulations. PharmaShell® enhances convenience for patients and saves providers money, and improves the safety and, potentially, the efficacy of drugs by avoiding initial high spikes in drug concentration. Instead, drug concentrations are kept within the therapeutic window to achieve the maximum benefit. PharmaShell® is based on an established industrial process, Atomic Layer Deposition (ALD), used primarily in the production of semi-conductors, which gives it features that clearly differentiate it from peer technologies.
Dual business strategy: product & tech licensing Nanexa pursues a dual business strategy aiming to develop a small portfolio of 3-4 internally developed “super-generics” (better versions of existing drugs) and bring these to clinical proof-of-concept stage before preferably out-licensing them in exchange for royalties and milestones on future sales. Separately, Nanexa has six collaboration programmes (one with AstraZeneca) from which it plans to secure licensing agreements for the PharmaShell® technology for the partner to apply to its own clinical candidates, providing another revenue stream. This dual approach de-risks Nanexa as it becomes less reliant on the success of any individual clinical programme.
Initiating coverage – fair value range of SEK 5-18 We base our valuation range on a scenario analysis; each one yields a risk-adjusted DCF value. Three scenarios lead us to set a value range of SEK 5-18 per share. The greatest value comes from Nanexa’s internal programmes NEX-18 and NEX-20 (SEK 16 and SEK 8, ex-costs) due to expected deal dynamics, with technology.
