Edison Investment Research

Latest research

Sunesis Pharmaceuticals

First signs of efficacy coming up

Outlook | Pharmaceuticals & healthcare | 22/03/2019

Sunesis is currently in the dose-escalation portion of the Phase Ib/II study of its BTK inhibitor vecabrutinib, and the first signs of clinical efficacy are expected in the upcoming doses. The drug is being tested in a range of B-cell malignancies where BTK inhibitors have historically shown some activity. The company will provide its next clinical update at the European Hematology Association (EHA) Congress in June 2019. In this note we review the clinical data to date and provide our clinical outlook.

Freegold Ventures

Shorty Creek potential validated by South32

Update | Mining | 22/03/2019

Freegold Ventures has granted South32 (an A$19.0bn market cap major demerged from BHP in 2015) an option to earn up to a 70% interest in Shorty Creek by investing US$30m, of which at least US$10m will be in the form of exploration expenditure. Freegold will remain the operator. However, South32’s (time deferred) option effectively represents a validation of the exploration potential at Shorty Creek and (significantly) allows it to be further explored and validated with no further share dilution…

Deutsche Beteiligungs

New investments ahead

Review | Investment trusts | 21/03/2019

Deutsche Beteiligungs (DBAG) is making steady progress on its investment agenda, with three new acquisitions and several follow-on funding rounds totalling €40.2m completed in Q119. DBAG’s Fund VII has so far been able to allocate 56% of its investment commitments in six transactions, reflecting solid portfolio ramp-up. DBAG expects to launch its successor fund by FY21. The current high proportion of relatively new investments in DBAG’s portfolio calls for a more medium-term perspective…

Auris Medical Holding

Full-year results and near-term trial initiations

Update | Pharmaceuticals & healthcare | 21/03/2019

Auris recently announced its full-year 2018 financial results and provided an update on its active intranasal betahistine programs. R&D expenditure for the year was down roughly 65% compared to FY17, which reflects the shift to focus on earlier-stage program development. Auris plans to initiate the AM-125 Phase II trial of intranasal betahistine for treating acute vertigo in Q119 following the finalisation of clinical site selection, which it states is nearly complete. Additionally, Auris plans…

Vermilion Energy

Dividend and growth comfortably covered

Update | Oil & gas | 19/03/2019

Vermilion Energy offers a geographically diverse production base, the ability to fund an 8.1% dividend yield and a forecast FY19 c C$530m capital programme, all achievable even at realised commodity prices c 3% below our base case (WTI US$56.1/bbl, Brent US$62.8/bbl). We adjust our FY19 and FY20 forecasts to reflect lower short-term commodity price expectations (based on the latest EIA forecasts of 12 March 2019). EIA’s FY19 WTI moves from US$64.9/bbl to US$56.1/bbl (-14%), driving down our…

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