Ryvu Therapeutics Sees Strong Interest Of Investors, The Plans Of The Company

Ryvu Therapeutics

Recommendation: Buy

12M TP: PLN 58.0

Conference highlights:

â–  New share issue. Company sees strong interest of investors in new share issue and sees it success a high. Company want to issue shares at prices close to the market. The new share issue will be focused on current investors base and company do not plan to marketing the new issue abroad.

â–  Schedule of new share issue. Company informed that it do not need the cash immediately, and plans to raise the cash from the first tranche in 4Q22/1Q23. Company informed that the minimum amount of the first tranche would have to be at PLN 100mn, but plans to raise much more than this under the first tranche issue.

â–  CEO confirmed its plans to participate in share issue.

â–  Budged revenue assumption. Company sees budged revenue assumption as conservative. The potential inflows from milestone payments (Exelixis, Menarini, Galapagos) and upfront payments related to partnering deals as well as sell of stake in Nodthera could diminish equity needs.

â–  RUV120. Company plans to present new update on RVU120 in the end of 2022. Company plans to complete phase II in AML/HR-MDS and solid tumors (e.g. TNBC) in early 2025. Company consider many variants of commercialization of RVU120 which depends on the set of clinical data.

â–  Synthetic lethality project. In 2024 company plans to start phase I for PRMT5 inhibitors and chose preclinical candidate for WRN inhibitors.

Our view: NEUTRAL

The information provided during the conference are rather neutral to us. As we indicated in our morning flash-note, company confirmed that capital needs could be lower if it will be able to get milestone from Exelixis (USD 62mn), Menarini (USD 19mn) and Galapagos. Company also confirmed that it plans to deliver at least one partnering agreement per year in the period of 2022-24e, which can also lower the company’s equity needs.

To the positive side we see information that company see strong interest in new share issue among current investors base we makes us to believe that company will raise all needed capital without significant discount to market prices.

Marcin Górnik

GPW’s Analytical Coverage Support Programme 3.0