Recommendation: Buy
12M TP: PLN 68.7
Company signed partnering deal with Biotech and sales license for STING agonists compounds with following highlights:
• Upfront payment EUR 20mn
• Bio-dollar value EUR 876mn
• Low single digit royalties
Additionally Biotech has committed to invest EUR 20mn in Rvyu by purchasing shares of series J at price not higher than PLN 48.86/sh.
Company has showed new presentation that included deal with Biontech which can be found under this link
Our view: POSITIVE
We underline that company has already sold part of rights to this compound to Exelixis and in our last report, we valued STING agonist compound at PLN 328mn (assuming bio-dollar value of USD 400mn and upfront payment USD 3mn) and we valued company’s shares at PLN 68.7/sh. Now, additionally assuming the upfront payment of EUR 20mn and bio dollar value of EUR 876mn from Biontech without changing any other factors, we estimate rNPV of this compound at PLN 857mn and in such case our model would indicate company’s share price at PLN 92/sh.
We underline such deal as well as commitment of Biontech to invest in company share significantly increase credibility of Ryvu Therapeutics and all projects developed by company.
Analyst: Marcin Górnik Tel.: 691 701 088 marcin.gornik@pekao.com. pl
GPW’s Analytical Coverage Support Programme 3.0
