Edison Investment Research Limited Edison Investment Research Limited: Edison issues initiation on RhoVac (RHOVAC) 28-May-2019 / 10:55 GMT/BST London, UK, 28 May 2019 *Edison issues initiation on RhoVac (RHOVAC)* RhoVac is developing RV001, a cancer immunotherapy designed to prevent or limit metastasis by activating T-cells against cells with metastatic potential. The therapy contains fragments of the protein RhoC, which is overexpressed in cells with metastatic potential across a range of cancers. The recently announced rights issue (SEK154.2m net) is fully committed to by a group of investors, funds from which will be used for a Phase IIb study in prostate cancer (results in H221) and a potential Phase II combination study with a checkpoint inhibitor in a different solid tumour indication. RhoVac will require a partner following positive Phase IIb results. We value RhoVac at SEK708m or SEK37.2/share. We value RhoVac at SEK708m or SEK37.2/share including estimated net cash of SEK170.3m (net cash from end-2018 + net proceeds from planned rights issue, to which we assign 100% probability since it is fully committed to by a group of investors). We currently only value RV001 in prostate cancer, with peak sales of $888m (SEK8.6bn). Near-term catalysts for the share price will be the initiation of the Phase IIb study and of the second potential Phase II combination study. According to our model, a successful Phase IIb outcome would result in an increase in RhoVac's rNPV to SEK2.0bn or SEK107.1/sh (see Valuation section). Click here [1] to view the full report. All reports published by Edison are available to download free of charge from its website www.edisongroup.com [2] *About Edison:* Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority [3]. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. *For more information please contact Edison:* Jonas Peciulis, +44 (0)20 3077 5728 Alice Nettleton, +44 (0)20 3077 5700 healthcare@edisongroup.com Learn more at www.edisongroup.com [2] and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-investment-research [4] Twitter www.twitter.com/Edison_Inv_Res [5] YouTube www.youtube.com/edisonitv [6] Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. End of Announcement - EQS News Service 816553 28-May-2019 1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=6abcb5dd991d504ade42518dcbe4a170&application_id=816553&site_id=vwd&application_name=news 2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=88c95533002fab2316572f9ef6cf3cc6&application_id=816553&site_id=vwd&application_name=news 3: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=105fe9be9b5e36892886e5a39d51d4b7&application_id=816553&site_id=vwd&application_name=news 4: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=edc5483da45ef361071849742dbf1595&application_id=816553&site_id=vwd&application_name=news 5: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=ec2d264fe4f303e2143a2e85c6eaa823&application_id=816553&site_id=vwd&application_name=news 6: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=6b959e4d7ee3c402b931a274d2bbe945&application_id=816553&site_id=vwd&application_name=news
(END) Dow Jones Newswires
May 28, 2019 05:55 ET (09:55 GMT)
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