NEW YORK, April 15, 2024 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Altamira Therapeutics Ltd. (NASDAQ: CYTO). The in-depth 28-page initiation report includes detailed information on the Altamira Therapeutic’s business model, services, industry, valuation, management, and risks.
The full research report is available here. Highlights from the report include:
- Altamira’s Delivery Platforms to Potentially Catalyze RNA Therapy Innovation: Altamira Therapeutics is developing OligoPhore and SemaPhore, two peptide-based platforms for extra-hepatic delivery of RNA-based therapies. These systems utilize a proprietary 21 amino acid peptide to create nanoparticles, facilitating the delivery of siRNA (OligoPhore™) and mRNA (SemaPhore™) into cells. Notably, these platforms allow for the potential administration of nucleic acid payloads to non-hepatic tissues, setting them apart from typical RNA delivery technologies focused on liver targets. OligoPhore and SemaPhore have shown to be effective in mouse models of cancer and inflammatory disease, including osteoarthritis, atherosclerosis, and more. Beyond their clinical promise, these platforms represent a noteworthy opportunity for deal-making in the biotech industry. Their wide-ranging applicability and novel approach provide valuable prospects for strategic collaborations and partnerships, enriching the ecosystem for RNA-based therapy development. This potentially situates Altamira as a key innovator in therapeutic applications and a desirable partner for ventures aiming to explore the broad potential of RNA therapy.
- Showcasing Innovative RNA Delivery Platform Through Flagship Therapeutic Programs: Altamira Therapeutics is enhancing the RNA therapy landscape with its innovative RNA delivery platform, highlighted by two key programs: AM-401 for KRAS-driven cancers and AM-411 for Rheumatoid Arthritis (RA). These programs are pivotal in demonstrating the platform's ability to deliver targeted therapies effectively, establishing them as foundational projects rather than the sole focus. By inhibiting cancer gene activity and targeting inflammation pathways, respectively, they illustrate the platform's flexibility and broad potential applications. As Altamira advances these programs towards preclinical development, with plans for IND applications by 2025, the company is also exploring out-licensing opportunities. This strategy leverages the platform's utility across diverse therapeutic areas. Adopting a "picks and shovels" business model, which focuses on providing companies that have their own RNA-based therapeutics a delivery platform to reach the desired target tissue, Altamira is positioned within the rapidly expanding RNA therapeutic market. Amidst this growth, an active Mergers & Acquisitions (M&A) environment further highlights the strategic value and attractiveness of innovative RNA delivery technologies.
- Strategic and Non-Dilutive Legacy Asset Monetization to Fuel High-Value RNA Focus: The company is realigning its strategic direction towards RNA delivery technologies while managing its legacy business with an eye on optimizing resources. The company is exploring opportunities to divest or partner its late-stage assets, including Bentrio® (AM-301), AM-125, and Sonsuvi® (AM-111), across rhinology, neurotology, and allergology. This move aims to secure non-dilutive funding, reinforcing Altamira's commitment to its core focus on RNA therapeutic development. A key step in this direction was the divestiture of a 51% stake in Altamira Medica AG, responsible for Bentrio®, to a Swiss private equity investor. This transaction not only provided Altamira with CHF 2,040,000 (about $2.3 million) in cash but also maintained 49% ownership in the subsidiary. Importantly, Altamira secured rights to 25% of future licensing income from Medica. This arrangement grants Altamira approximately 62% of the upside potential from Bentrio's business, illustrating a calculated approach to leveraging its legacy assets to fuel its pivot towards RNA-based therapies.
- Valuation: Altamira Therapeutics presents a unique investment opportunity, blending the imminent monetization potential of its late-stage assets with the expansive growth possibilities in the RNA therapeutics field. The company's focused effort to divest or partner its mature assets in key therapeutic areas aims for non-dilutive funding via upfront payments and milestones, thus potentially minimizing shareholder dilution—an uncommon aspect within biotechnology landscape. Despite significant development investments, Altamira's market capitalization appears to place limited value on its portfolio and pioneering RNA delivery technologies, OligoPhore™ and SemaPhore™, possibly due to market oversight of its strategic market position and its portfolio’s upside optionality. A blended Discounted Cash Flow (DCF) analysis and comparable company analysis approach, assuming a 10.0% discount rate, yielded a valuation of $8.21 per share, contingent on the successful execution by the company.
About Altamira Therapeutics Ltd.
Altamira Therapeutics focuses on creating RNA-based treatments for non-liver targets using its OligoPhore™ and SemaPhore™ delivery platforms. It has two main preclinical siRNA projects: AM-401 for KRAS-driven cancer and AM-411 for rheumatoid arthritis. The company is also divesting or out-licensing its legacy allergology, viral infection, and inner ear therapeutic assets.
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.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Altamira Therapeutics Ltd. (NASDAQ: CYTO) for producing research materials regarding Altamira Therapeutics Ltd. 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 an annual or semi-annual research engagement. As of 04/15/24, the issuer had paid us $25,000 ($24,980 after wire charge) for the initiation report and minimum of one update note (as a part of $40,000 annual contract in two six-month upfront installment payments for first year of coverage), which commenced 03/15/24 and the second installment of $15,000 will be due by 09/15/24 for a minimum of two additional update notes. 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 not paid us for non-research related services as of 04/15/24. 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 Altamira Therapeutics Ltd.
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