Edison Initiates Coverage on Relmada Therapeutics

LONDON, February 18, 2015 /PRNewswire/ --

- Edison Investment Research, a leading international investment research firm, announces theinitiation of full coverage ofRelmada Therapeutics.

Relmada Therapeutics, an emerging pain therapeutics company, went public through a reverse merger in May 2014, raising a total of $28m in the associated capital raise. It currently trades on the bulletin boards, but plans an uplisting to NASDAQ in H215. It is a low overhead company with 11 employees as of December 2014. It is a combination of the assets of two private companies, TheraQuest Biosciences and Medeor, Inc.

(Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

Relmada has a total of four products in development. LevoCap ER is a once-a-day extended release formulation of levorphanol, a potent opioid which is also an SNRI and NMDA antagonist. It should enter Phase III within the next 12-18 months. d-Methadone is a
d-isomer of methadone but, unlike the parent molecule, inhibits pain through antagonism at the NMDA receptor, is substantially devoid of opioid activity and should enter Phase II in H116. BuTab ER, if approved, would be the only orally absorbed buprenorphine on the market and should enter Phase I in 2015. MepiGel is a topical non-greasy dosage form of the local anesthetic mepivacaine and should enter Phase I in late 2015.

We value Relmada at $601m or $11.56 per basic share based on a risk-adjusted NPV of its pipeline products, assuming a 12.5% WACC and no value past patent/exclusivity expiration. On a fully diluted basis we value the company at $627m or $9.66 per share. The bulk of the value (~62%) of the company is in LevoCap ER, as it is due to begin Phase III and has broad market potential in the severe pain market. Key catalysts that would affect our valuation would be proof-of-concept data for BuTab ER in H215, proving that it has successfully formulated an orally bioavailable version of buprenorphine. A licensing deal for LevoCap ER would decrease the company's funding requirements and substantially lower the risk profile of the programme and the company financially. As we currently have no visibility on such a deal, these would give upside to our current forecasts.

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For more information please contact:
Maxim Jacobs, CFA, Edison Investment Research, [phone]
Dr Mick Cooper, Edison Investment Research, [phone]
[e-mail]

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