Celyad ADR Listing: Joining The U.S. CAR Club
Edison | Jun 25, 2015 02:19AM ET
Joining the US CAR club
Celyad SA (BRU:CYAD) (formerly Cardio3) has completed a US IPO and EU placing to raise $100.1m gross. This will fund an aggressive and ambitious clinical trial programme to develop novel Natural Killer CAR cancer therapy (NKG2D). Celyad aims to start one solid tumour trial per quarter once a Phase I initial AML/MM efficacy signal is detected. This potentially moves NKG2D therapy into large, valuable indications. The core value remains based on C-Cure cardiac cell therapy. Adding CAR AML and MM therapies takes the indicative value to €966m. Solid tumour indications may add €519m, €53/$60 share, but are not currently included as they are still preclinical.
NKG2D CAR potentially targets multiple cancers
The current dose-finding Phase I safety study is in acute myeloid leukaemia (AML) and multiple myeloma (MM). Results will be announced as each three-patient cohort completes dosing; the first patient has been safely treated. If an efficacy signal is seen, Cardio3 will both expand the study in AML and MM and start a series of solid cancer Phase II studies, aiming to start one new indication per quarter. This could open solid tumour CAR therapy, a new market opportunity.
Cardiac: C-Cure cells and surgical devices
The core of Cardio3’s value remains the C-Cure autologous cell treatment for cardiac regeneration. CHART-1 will deliver data by mid-2016; the probability is set at 45%. CHART-2, a part-US Phase III study, is planned to start in H215; Cardio3 has applied to the FDA to use its Cathez catheter delivery system. Cathez and CorQuest are the basis for a high-value cardiac surgery device business.
Valuation: Cash after the IPO
The US IPO of 1.168m ADRs at $68.56 per ADR plus a private EU placing of 0.292m shares at €60.25 raised $100.1m gross; possibly over $90m net. There is a further overallotment period of 15% of the offering for 30 days from 18 June that could raise $15m. Based on a potential 9.53m shares in issue after overallotment, our indicative value has adjusted to €966m, €98/$112 share (formerly €121share) at the IPO $/€ rate of 1.138. The core value remains C-Cure with initial estimates for CAR in AML and MM at 15% probability added. Adding in up to six solid tumours may generate a further €519/$586m of additional value. The placing changes the year-end 2015 cash forecast to €115m.
Get The News You Want
To Read the Entire Report Please Click on the pdf File Below
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.