Destiny Pharma sits on cash pile as it focuses on two lead assets

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Destiny Pharma PLC (LON:DEST) said it has enough cash to power operations until the fourth quarter of 2022 as it focuses on its two lead assets.


The firm said it has “a great opportunity” as a UK biotechnology company focused on infection prevention and backed up by “strong Phase 2 clinical data and clear commercial positioning”.


READ: Destiny Pharma says anti-infection gel trial results ‘exceptionally high’


In the fourth quarter of 2020 it bought NTCD-M3, a candidate for the prevention of C. difficile infection recurrence, with Phase 3 clinical studies earmarked to start next year.


Meanwhile, following recent positive Phase 2b clinical trial results for the XF-73 nasal gel to prevent post-surgical infections, Destiny is about to start Phase 3 preparation.


Last year, the UK government granted GBP800,000 to fund the majority of the GBP1mln of a programme with SporeGen to develop preventative treatment for COVID-19.


The plan is to complete the required preclinical safety and efficacy studies and also develop the manufacturing process by early 2022 and be ready to commence the first human clinical studies thereafter.


Cash resources are also being used to develop new clinical candidates from the preclinical XF pipeline, contribute to the COVID-19 SPOR-COV project and to capitalise on commercial opportunities including additional grant funding, partnering and licensing.


Destiny Pharma will continue to establish discovery stage research programmes through existing and new collaborations and, where possible, seek additional non-dilutive funding support as it has done successfully in the period under review.


It will also actively seek partners as well as exploring alternative funding options for its two lead assets.


In the year to December 31, the AIM-listed firm made a loss before tax of GBP6.4mln, against a GBP5.5mln loss in 2019, and ended the period with GBP9.7mln in the bank.


“Destiny Pharma has delivered a very strong performance in the last 12 months and we look forward to further progress this year,” said chief executive Neil Clark in a release.


“We remain committed to developing novel products that prevent infections and have a clear clinical need and a substantial commercial opportunity.”


Analysts at house broker finnCap said the results highlighted “a year to remember” but not just for COVID-19.


“We reiterate a 370p target price, underpinned by an expected net asset per value of 372p and peer group valuations in the US that currently trade at c.GBP600mln,” they commented.


“Our valuation excludes any value attributable to other drugs from the XF platform or SPOR-COV collaboration, suggesting multiple levers for further value appreciation.”


–Adds broker comment–

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