Pharma Equity Group (One-pager): Capital position strenghtened
In 2024, Pharma Equity Group strengthened its capital position by securing subordinated debt and a directed share issue. The company still awaits a resolution of outstanding matters with Portinho, which we expect will be finalized in 2025, positioning PEG to remain well-capitalized through the end of 2026, at its current burn rate of around DKK 7m per quarter in 2024-25. Our revised DCF model concentrates on individual projects, assigning the highest valuations to RNX-051 and RNX-011.
At the start of Q4 on 04.10.2024, Pharma Equity Group further strengthened its capital base, raising DKK 51 million through a directed share issue, priced at DKK 0.25 per share—a 20% premium over the October 3, 2024, closing price, from new and existing investors, and the PEG board and management. The additional capital enhances the company’s working capital, enabling a stronger focus on its pipeline, particularly on its three lead programs: RNX-051 for colorectal cancer, RNX-011 for peritonitis, and RNX-041 for inflammatory bowel diseases. In addition to advancing the pipeline, another key milestone for Pharma Equity Group is to secure a partner for one or more of these projects. Earlier in 2024, the company expanded its leadership team with a Chief Business Development Officer. Combined with the capital increase, these initiatives provide a solid foundation for negotiations with potential partners.
Disclaimer: HC Andersen Capital receives payment from Pharma Equity Group for a Digital IR/Corporate Visibility subscription agreement. /Claus Thestrup 4:40 PM 28-10-2024.
Pharma Equity Group
Pharma Equity Group develops new medicines for the local treatment of serious and life-threatening inflammatory diseases for which there is currently no adequate treatment. The company uses repositioning of existing drugs and brings drug candidates to a clinical phase III stage, after which it is handed over to a strategic partner who will complete the development of the products and bring them to market, either independently or in collaboration with the company.
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