New research note here: https://www.equitydevelopment....
Destiny’s AGM included clinical and business development updates which we summarise below. In addition, there has been an increasing tempo in broader market news that helps augment Destiny’s investment proposition. These include the UK Government and GSK’s pledge on antimicrobial resistance.
The group CMO also detailed the revised clinical program for XF-73 Nasal and what struck us most was the expected £25m cost. To most potential licensors of XF-73 Nasal, this level of cost (and any upfront payments) would be a ‘steal’ for a license that gets them to the other side of Phase 3, the rights to XF-73 Nasal in some jurisdictions, and a pathway to a regulatory submission.
In a recent, well-received announcement, Destiny said its product XF-73 had been awarded an IPD that provides entry into the UK’s Innovative Licensing and Access pathway (ILAP). After a similar award by the US FDA of Qualifying Infectious Disease Product (QIDP) status, this means endorsement by two transatlantic regulators, plus many tangible benefits from access to ILAP.
Our fair value for Destiny remains at £212.0m (or 234p / share) since our recent changes to reflect the longer times until Phase 3 studies start and revenues flow back. Ironically the recent IPD award may shorten some of these timelines, while QIDP status also extends exclusivity.
