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, updated 15:45 20-11-2024
Pharma Equity Group
Pharma Equity Group utvecklar nya läkemedel för lokal behandling av allvarliga och livshotande inflammatoriska sjukdomar för vilka det för närvarande inte finns någon adekvat behandling. Bolaget använder ompositionering av befintliga läkemedel och tar läkemedelskandidater till ett kliniskt fas III-stadium, varefter de överlämnas till en strategisk partner som kommer att slutföra utvecklingen av produkterna och föra ut dem på marknaden, antingen självständigt eller i samarbete med bolaget.
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