Warsaw Stock Exchange: Ryvu Therapeutics 1Q23 in line with expectations (NEUTRAL)
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Ryvu Therapeutics reported 1Q23 results with the following highlights:
- Revenues PLN 18mn (+162% y/y, 5% above our estimates and 2% below market consensus). Company recognized revenues from sales of its products of PLN 13mn (vs. PLN 0mn year ago), out of which milestone payments PLN 4.3mn (USD 1mn milestone from Exelixsis), PLN 3.5mn advance payment (recognition of upfront payment from BioNTech) and PLN 5.0mn lease of employees (cooperation with BioNTech). Company also reported revenues from grants of PLN 5.5mn (vs. PLN 6.8mn year ago).
- Total operating expenses amounted to PLN -36mn (+6% y/y). Total expenses excluding non-cash cost of incentive program amounted to PLN 33mn (vs. PLN 26mn year ago, vs. PLN 32mn in 4Q22). Cost of incentive program amounted to PLN 3mn (vs. PLN 8 year ago).
- Reported EBITDA amounted to PLN -15mn (vs. PLN -23mn year ago, vs. PLN -15mn expected by market consensus, vs. PLN -17mn expected by us).
- EBITDA adjusted by incentive program amounted to PLN -12mn (vs. PLN -15mn year ago, vs. PLN -15mn expected by us)
- Net loss amounted to PLN -18mn (vs. PLN -27mn year ago, vs. PLN 18mn expected by market consensus, vs. PLN 20mn expected by us).
- Cash came in at PLN 301mn (vs. PLN 102mn in 4Q22, vs. PLN 316mn expected by us). We underline that company has also position in bond in the amount of PLN 13mn, including this position company’s cash came at PLN 314mn.
Our view: NEUTRAL
Company’s results came fully in line with market consensus, therefore today, we expect neutral market reaction, while the slight outperformance of our estimates is related to slightly higher revenues which is due to strong revenues from lease of employees in cooperation with BioNTech of PLN 5mn (vs. PLN 3.5mn expected by us) and lower costs of PLN 36mn (vs. PLN 37mn expected by us), however this slight underperformance do not change our perception of the company at all. Cash position could be slightly disappointing with PLN 301mn (vs. PLN 316mn expected by us) but we underline that company invested in bonds PLN 13mn. Including this, company’s cash position would amount to PLN 314mn (in line with our estimates). In total, 1Q23 results do not change out perception of the company and today we expect neutral market reaction.
Upcoming events
• “Updated Clinical Data from the Ongoing Phase Ib Dose-Escalation Study of RVU120 in Patients with AML or High-Risk MDS and Preclinical Data from the Combination Study of RVU120 and Ruxolitinib in Myeloproliferative Neoplasms to be Presented at the upcoming 2023 EHA Congress”
• “Anticipated commencement of three Ryvu-sponsored Phase II trials of RVU120 in solid tumors and AML/HR-MDS in 2H 2023”
• Updated in vivo data from the MTA-cooperative PRMT5 inhibitor program presented at AACR Annual Meeting 2023”
Upcoming conferences
• “ASCO Annual Meeting, taking place June 02 – 06, in Chicago, IL, where Ryvu will be represented by an extended scientific and executive teams”
• “BIO International Convention, taking place June 05 – 08, in Boston, MA, where Ryvu will be represented by the executive team”
• “EHA (European Hematology Association) 2023 Congress, taking place 8 – 11 June in Frankfurt, Germany, where Ryvu scientific and executive teams will present two poster presentations”
We underline that company’s abstract for RVU120 has not been approved for ASCO conference. On the other hand company will present two posters on EHA (June 8-11) and the results presented on these conference will be a key driver for share price in the short-term.
Ryvu Therapeutics 1Q23 results
Marcin Górnik
