NEW YORK, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released update note on Radiopharm Theranostics Limited (ASX: RAD). The update note includes information on the Radiopharm Theranostics’ financial results, management commentary, recent developments, outlook, risks, and our revised valuation estimates.
The update note is available here. Highlights from the note include:
- Key partnerships aiding progress in clinical trials - Radiopharm Theranostics engaged in multiple partnerships in the past few months that are expected to advance the company’s pipeline of radiopharmaceutical therapies. The company entered into a supply agreement with Isotopia Molecular Imaging to supply high-quality Lutetium - 177 N.C.A for the purpose of conducting research, clinical trials, development, and early-stage commercialization of Radiopharm’s diagnostic and therapeutic products. Lutetium - 177(Lu- 177) has been widely discussed and proven to be one of the promising radioisotopes. Radiopharmaceuticals based on Lu-177 have gained prominence due to their excellent therapeutic performance for certain cancer treatments. Novartis recently gained the approval of lutetium Lu 177 vipivotide tetraxetan for the treatment of adult patients with prostate cancer. Additionally, Radiopharm extended its previous agreement with GenesisCare to support a second Radiopharm clinical trial in Australia. The trial will use Radiopharm’s PSA targeting antibody to start a therapeutic Phase 1 in prostate cancer. A global oncology provider GenesisCare aims to bring novel therapies and precision medicine to more cancer patients through its global innovation programs.
- Strong financial position and lower than expected burn rate - The company ended the quarter and year with an operating cash burn of $3.7 million and $9.9 million, respectively. Research and staff expenditure accounted for 83% and 78% of the total operating cash burn for the quarter and year ended June 2022. The operating cash burn was reported lower than our expectations of $15.1 million for the year. The company reported cash and cash equivalents of $26.9 million as of June 2022. We expect the company’s operating cash burn to steadily increase as both therapeutic and diagnostic candidate advances toward clinical trials.
- Valuation - Radiopharm has a diversified pipeline of therapeutic and diagnostic candidates targeting diseases with high unmet needs. Five new candidates are expected to enter the phase 1 clinical trial during the second half of 2022. We have updated our valuation methodology, reducing our estimates for the near-term operating cash burn. Even though we have reduced our near-term estimates, we expect the operating cash burn to increase significantly as more candidates enter clinical trials. Updating the discount rates and the comparable company analysis, our valuation methodology yielded a value of $224.19 million or $0.88 per share, contingent on successful execution by the company. We view RAD as a suitable investment for institutional and high-risk tolerant retail investors given the unique high-risk-reward opportunity.
About Radiopharm Theranostics Limited
Radiopharm Theranostics is a biotechnology company that has licensed four radiopharmaceuticals candidates with therapeutic and diagnostic focuses in the early development phases. The portfolio includes differentiated platforms, spanning across peptides, small molecules, and monoclonal antibodies that address various oncological conditions.
For more information, visit https://radiopharmtheranostics.com
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms including Factset, Morningstar, and Thomson One.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Radiopharm Theranostics Limited for producing research materials regarding Radiopharm Theranostics Limited, and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for research engagement. As of 08/04/2022 the issuer had paid us $33,000 for our services, consisting of $20,000 for an initiation report and $13,000 for update notes, which commenced 09/03/2021, based on two distinct payments of a $33,000 total annual fee. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has paid us for non-research related services as of 08/04/2022 consisting of $5,500 for presenting at two investment conferences. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Radiopharm Theranostics Limited.
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