Erytech Pharma: Private Placement To Pursue Graspa Strategy
Edison | Dec 17, 2015 07:43AM ET
The recent €25.4m private placement provides Erytech Pharma (PA:ERYP) with a healthy cash balance, which should allow effective execution on the strategy to advance and accelerate Graspa/Eryasp in the US, to move development into frontline ALL (acute lymphoblastic leukaemia) and to continue pursuing new indications. Two-year follow up ALL data for Graspa were recently presented at ASH, reinforcing its potential as an effective, safe therapy for patients with few options in this indication. Our valuation is increased to €324.9m with the higher cash balance.
€25.4m private placement to advance the strategy
We estimate the €25.4m private placement has boosted cash to €45-50m. Based on an estimated cash burn of c €12m in 2015 and allowing for an uptick in coming years, this should provide a runway into 2019 and allow Erytech to continue with its Graspa/Eryasp development strategy in leukaemia and beyond, in addition to advancing the pipeline. In July 2015, Erytech announced plans to conduct a US IPO; we believe it remains an option, but will be dependent on market conditions.
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