Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

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, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website. 

e-therapeutics reported H1 FY24 results (to end-July 2023), reaffirming its commitment to integrating its computational and hepatocyte biology expertise to develop short interfering RNA (siRNA) therapies. The key half-year development was the proof-of-concept (PoC) data for two preclinical assets for the treatment of cardiometabolic disease and haemophilia, with further updates forthcoming. We view these pipeline updates, especially in segments with increased interest, as positive. Management continues to strengthen its intellectual property (IP) position and has filed new patent applications to protect 11 inventions relating to its novel targets and siRNA constructs. In our view, the company’s cost-effective and flexible approach is a key differentiator, especially in light of the challenging funding environment for drug discovery. In H1 FY24, R&D spend was £5.3m, and the company expects an increase in H2 FY24 with further development of its AI capabilities and progression of its in-house preclinical pipeline. At end-July 2023, e therapeutics had a net cash position of £24.8m.

e-therapeutics reported H1 FY24 results (to end-July 2023), reaffirming its commitment to integrating its computational and hepatocyte biology expertise to develop short interfering RNA (siRNA) therapies. The key half-year development was the proof-of-concept (PoC) data for two preclinical assets for the treatment of cardiometabolic disease and haemophilia, with further updates forthcoming. We view these pipeline updates, especially in segments with increased interest, as positive. Management continues to strengthen its intellectual property (IP) position and has filed new patent applications to protect 11 inventions relating to its novel targets and siRNA constructs. In our view, the company’s cost-effective and flexible approach is a key differentiator, especially in light of the challenging funding environment for drug discovery. In H1 FY24, R&D spend was £5.3m, and the company expects an increase in H2 FY24 with further development of its AI capabilities and progression of its in-house preclinical pipeline. At end-July 2023, e therapeutics had a net cash position of £24.8m. 

e-therapeutics - More to come in RNAi therapy discovery

e-therapeutics is a biotech leveraging its validated computational biology platform to identify novel, liver-associated targets and expand its internal pipeline of short interfering RNA (siRNA or RNAi) therapeutics. In addition to the advantages of focusing on a single cell type (hepatocytes), the company’s recent strategic commitment to large language model (LLM) technologies has the potential to provide accelerated access to effective new drugs. RNAi medicines are a rapidly evolving drug class, with five drugs currently that use this technology. We view RNAi as a key growth market for e therapeutics. At end-January 2023, the company had a net cash position of £31.7m, supported by a capital raise of £13.4m (net proceeds) in September 2022.

e-therapeutics is a biotech leveraging its validated computational biology platform to identify novel, liver-associated targets and expand its internal pipeline of short interfering RNA (siRNA or RNAi) therapeutics. In addition to the advantages of focusing on a single cell type (hepatocytes), the company’s recent strategic commitment to large language model (LLM) technologies has the potential to provide accelerated access to effective new drugs. RNAi medicines are a rapidly evolving drug class, with five drugs currently that use this technology. We view RNAi as a key growth market for e therapeutics. At end-January 2023, the company had a net cash position of £31.7m, supported by a capital raise of £13.4m (net proceeds) in September 2022.

e-therapeutics - Enhancing siRNA drug discovery with LLMs

Research from ACF Equity Research, ACF Equity Research

ACF Equity Research

Research from ACF Equity Research

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Thematic (Sector/Industry)

Drug discovery and development requires colossal upfront investment. The process typically takes over a decade. A large number of product candidates fail to prove efficacy or safety during preclinical and clinical research phases or fail to pass regulatory scrutiny. According to Deloitte, the average cost of drug discovery and development increased over 80% between 2010 and 2018 from $1.188bn to $2.168bn, CAGR 7.8%, per successfully launched drug. By inflation only, we would expect costs to have risen to ~$1.5bn by 2018 and ~$1.8bn by YE22E, assuming an average inflation rate of 2.5% p.a....

Drug discovery and development requires colossal upfront investment. The process typically takes over a decade. A large number of product candidates fail to prove efficacy or safety during preclinical and clinical research phases or fail to pass regulatory scrutiny. According to Deloitte, the average cost of drug discovery and development increased over 80% between 2010 and 2018 from $1.188bn to $2.168bn, CAGR 7.8%, per successfully launched drug. By inflation only, we would expect costs to have risen to ~$1.5bn by 2018 and ~$1.8bn by YE22E, assuming an average inflation rate of 2.5% p.a....

Artificical Intelligence (AI) In Drug Discovery ACF Equity Research 23092022

e-Therapeutics (ETX) has announced a long-awaited research collaboration with Novo Nordisk (Novo) on early target discovery in diabetes. This is the first commercial collaboration in ETX’s history and will last for at least a year. The financial terms of the transaction were not disclosed but the deal should be recognised for its validation of ETX’s disease-aware network-driven drug discovery (NDD) platform. This is expected to be the first in an expected series of deals on the NDD platform and the assets generated from it.

e-Therapeutics (ETX) has announced a long-awaited research collaboration with Novo Nordisk (Novo) on early target discovery in diabetes. This is the first commercial collaboration in ETX’s history and will last for at least a year. The financial terms of the transaction were not disclosed but the deal should be recognised for its validation of ETX’s disease-aware network-driven drug discovery (NDD) platform. This is expected to be the first in an expected series of deals on the NDD platform and the assets generated from it.

e-Therapeutics - Rewards for keeping the faith

United Kingdom

e-Therapeutics PLC is a systems biology drug discovery company.  The Company uses computers to predict the effects of intervention to proteins in a cell.

e-Therapeutics PLC (ETX LN)

e-therapeutics - Termination of coverage

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium...

Edison Investment Research

e-therapeutics - More to come in RNAi therapy discovery

e-therapeutics reported H1 FY24 results (to end-July 2023), reaffirming its commitment to integrating its computational and hepatocyte biology...

Edison Investment Research

e-therapeutics - Enhancing siRNA drug discovery with LLMs

e-therapeutics is a biotech leveraging its validated computational biology platform to identify novel, liver-associated targets and expand its...

Edison Investment Research

Artificical Intelligence (AI) In Drug Discovery ACF Equity Research 23092022

Drug discovery and development requires colossal upfront investment. The process typically takes over a decade. A large number of product...

ACF Equity Research

e-Therapeutics - Rewards for keeping the faith

e-Therapeutics (ETX) has announced a long-awaited research collaboration with Novo Nordisk (Novo) on early target discovery in diabetes. This is...

Edison Investment Research