Warsaw Stock Exchange - Ryvu Therapeutics (WSE: ) – 2Q22 Results
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Results adjusted by Nodthera valuation in line with expectations
Ryvu Therapeutics reported 2Q22 results with the following highlights:
- Revenues PLN 7.5mn (+37% y/y, 8% above our estimates and 9% above market consensus). Revenues from grants amounted to PLN 7.3mn (+40% y/y).
- Total operating expenses amounted to PLN 45.6mn (+57% y/y). We underline that company has started to present the Notdthera valuation before EBIT, while until now this line has been presented before gross profit before tax. As a result total expenses increased that much as Nodthera valuation had negative effect in the amount of PLN 7.7mn. Total cost adjusted by Nothera valuation would come at PLN 38mn (vs. PLN 29mn, vs. PLN 34mn quarter ago).
- Reported EBITDA loss amounted to PLN 34.8mn (vs. PLN 20.6mn year ago, vs. PLN 23.9mn expected by market consensus, vs. PLN 23.5mn expected by us). Excluding the cost of incentive program and Nodthera valuation EBITDA loss amounted to PLN 19mn (vs. PLN 13mn year ago, vs. PLN 15mn expected by us). Underperformance is related primarily to the higher costs if external services.
- Net loss amounted to PLN -36.9mn (vs. PLN 24.2mn year ago, vs. PLN 27.2mn expected by market consensus, vs. PLN 26.8mn expected by us).
- Net cash came in at PLN 40mn (vs. PLN 60mn in 3Q21, vs. PLN 108mn year ago).
Our view: NEUTRAL
We underline that company’s results were affected by the valuation of Nodthera shares in the amount PLN 7.7mn and we believe that this value was not included in market consensus. Adjusting reported numbers by this amount EBITDA would come at PLN 27mn (vs. PLN 24mn expected by us and market consensus), while the net income would come at PLN 29mn (vs. PLN 27mn expected by us and market consensus). Therefore, the underperformance compared to market expectation is relatively small. We also underline that company’s pace of cash consumption is at level comparable to the previous quarters i.e. approx. PLN 20m per quarter, therefore today, we expect rather neutral market reaction.
Key issues in the upcoming months:
- RVU120: “Data update from the ongoing Phase I clinical study in acute myeloid leukemia (AML) and high-risk myelodysplastic syndrome (HR-MDS) and the ongoing Phase I clinical study in solid tumors will be presented in Q4 2022”
- Synthetic lethality. “Data on Ryvu’s novel MTA-cooperative PRMT5 inhibitors as targeted therapeutics for MTAP deleted cancers to be presented in Q4 2022.”
Ryvu Therapeutics 2Q22 results
Marcin Górnik marcin.gornik@pekao.com. pl
GPW’s Analytical Coverage Support Programme 3.0
