AFT Pharmaceuticals — Strong FY18 results

AFT Pharmaceuticals (ASX: AFT)

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Research: Healthcare

AFT Pharmaceuticals — Strong FY18 results

AFT Pharmaceuticals recently reported its FY18 results. Operating revenue grew 15.7% compared to FY17, approximately double the 8.1% growth seen the year before. The Australian market, which now represents over 61% of revenues at N$49.2m, was leading the way with 32.7% growth, thanks to patients switching from codeine-containing products. Revenues in New Zealand fell by 7% from NZ$29.2m to NZ$27.1m due to the company no longer being the sole supplier of Metoprolol. Maxigesic continues to do well internationally and is now launched in 10 countries.

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Healthcare

AFT Pharmaceuticals

Strong FY18 results

Financial update

Pharma & biotech

30 May 2018

Price

NZ$2.36

Market cap

NZ$230m

NZ$0.69/US$

Net debt (NZ$m) at 31 March 2018

23.9

Shares in issue

97.3m

Free float

21.6%

Code

AFT

Primary exchange

NZX

Secondary exchange

ASX

Share price performance

%

1m

3m

12m

Abs

0.4

(1.3)

0.4

Rel (local)

(2.6)

(3.0)

(10.3)

52-week high/low

NZ$2.8

NZ$2.2

Business description

AFT Pharmaceuticals is a specialty pharmaceutical company that operates primarily in Australasia but has product distribution agreements across the globe. The company’s product portfolio includes prescription and over-the-counter drugs to treat a range of conditions and a proprietary nebuliser.

Next events

Additional Maxigesic launches

2018

Analysts

Maxim Jacobs

+1 646 653 7027

Nathaniel Calloway

+1 646 653 7036

AFT Pharmaceuticals is a research client of Edison Investment Research Limited

AFT Pharmaceuticals recently reported its FY18 results. Operating revenue grew 15.7% compared to FY17, approximately double the 8.1% growth seen the year before. The Australian market, which now represents over 61% of revenues at N$49.2m, was leading the way with 32.7% growth, thanks to patients switching from codeine-containing products. Revenues in New Zealand fell by 7% from NZ$29.2m to NZ$27.1m due to the company no longer being the sole supplier of Metoprolol. Maxigesic continues to do well internationally and is now launched in 10 countries.

Year end

Revenue (NZ$m)

PBT*
(NZ$m)

EPS*
(NZ$)

DPS
(NZ$)

P/E
(x)

Yield
(%)

03/17

69.2

(18.5)

(0.19)

0.0

N/A

N/A

03/18

80.1

(12.9)

(0.13)

0.0

N/A

N/A

03/19e

99.6

0.0

0.05

0.0

N/A

N/A

03/20e

120.7

9.9

0.10

0.0

23.6

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Australia is the key near-term revenue driver

Revenue in Australia was up 32.7% in FY18 compared to FY17, thanks in large part to Maxigesic sales increasing by 65%. Growth is expected to continue to be robust as patients switch from codeine-containing products (which are no longer available over the counter after 1 February 2018 due to re-scheduling) to Maxigesic.

FY19 a key year for Maxigesic globally

Maxigesic is currently sold and launched in 10 countries and distribution agreements are in place in a total of 125. New launches were negatively affected by slower than expected registrations in the EU, but the company believes that regulatory delays are behind it, with launches in countries such as Spain, Portugal, France, Ireland and the Nordics expected by the end of CY18.

A potential positive catalyst in New Zealand

In January, the New Zealand Medicines Classification Committee announced a recommendation that all codeine combination medicines be upscheduled from over-the-counter to prescription-only status from 2020. This should boost Maxigesic sales in AFT’s home market considerably once it takes effect.

Valuation: NZ$478m or NZ$4.91 per share

We are increasing our valuation to NZ$478m or NZ$4.91 per share from NZ$460m or NZ$4.73 per share, mainly due to increased expectations for Australian revenues due to higher Maxigesic sales and rolling forward our NPV. This was partly mitigated by slight reductions in expectations for New Zealand and Rest of World (RoW), and a higher net debt balance. We continue to expect that AFT will achieve EBITDA break-even in FY19.

Momentum increasing

AFT recently reported operating revenue of NZ$80.1m for FY18, ending on 31 March 2018. This marks a 15.7% increase over FY17, a marked acceleration in sales growth compared to the 8.1% growth seen over the year before. The pretax loss for the period was NZ$12.7m, compared to an FY17 loss of NZ$18.3m.

Exhibit 1: FY18 results by segment

NZ$000s

Revenues (2018)

Revenues (2017)

Loss before tax (2018)

Loss before tax (2017)

Australia

49,193

37,064

538

(3,663)

New Zealand

27,096

29,168

(4,598)

(5,782)

Asia

1,286

1,005

(698)

(689)

Rest of World

2,496

1,968

(7,907)

(8,226)

Total

80,071

69,205

(12,666)

(18,330)

Source: AFT Pharmaceuticals

The Australian segment reported particularly strong results, thanks to Maxigesic revenues increasing by 65% (due to less stringent scheduling for Maxigesic, as well as the announcement that products containing codeine would no longer be available without a prescription), which is especially impressive as that growth is on top of the 133% growth seen in FY17 for Maxigesic in Australia.. The outlook for Maxigesic in Australia remains strong, as market research conducted by the company suggests that 40-47% of current consumers who buy 750m OTC codeine analgesics each year in Australia could switch to another OTC analgesic rather than get a doctor’s prescription, which they have been forced to do as of 1 February 2018 (two months before the end of FY18).

Additional Maxigesic launches coming in FY19

Maxigesic is now sold and launched in a total of 10 countries – Australia, New Zealand, Brunei, Israel, Italy, Malta, Serbia, Singapore, United Arab Emirates and the UK. New launches were negatively affected by slower than expected registrations in the EU, but the company believes regulatory delays are behind it with launches in countries such as Spain, Portugal, France, Ireland and the Nordics expected by the end of CY18. Additionally, licensing discussions are ongoing in areas such as the US, Canada, China, Russia and Brazil.

Exhibit 2: Current and upcoming Maxigesic launches

Country

Status

Australia

Launched

New Zealand

Launched

Israel

Launched

Italy

Launched

Malta

Launched

Serbia

Launched

Singapore/Brunei

Launched

UK

Launched

United Arab Emirates

Launched

Iraq

Launch pending CY Q218

Malaysia

Launch pending CY Q218

Central America

Launch pending CY Q218

Ireland

Launch pending CY Q218

Belgium

Launch pending CY H218

Luxembourg

Launch pending CY H218

France

Launch pending CY H218

Hong Kong

Launch pending CY H218

Spain

Launch pending CY Q418

Portugal

Launch pending CY Q418

Nordics

Launch pending CY Q418

Mexico

Launch pending CY Q418

Eastern Europe & Balkans

Launch pending CY18

US and Canada

Licensing discussions starting

China, South Korea and Taiwan

Licensing discussions starting

Russia

Licensing discussions starting

Brazil and Latin America

Licensing negotiations underway

Country

Australia

New Zealand

Israel

Italy

Malta

Serbia

Singapore/Brunei

UK

United Arab Emirates

Iraq

Malaysia

Central America

Ireland

Belgium

Luxembourg

France

Hong Kong

Spain

Portugal

Nordics

Mexico

Eastern Europe & Balkans

US and Canada

China, South Korea and Taiwan

Russia

Brazil and Latin America

Status

Launched

Launched

Launched

Launched

Launched

Launched

Launched

Launched

Launched

Launch pending CY Q218

Launch pending CY Q218

Launch pending CY Q218

Launch pending CY Q218

Launch pending CY H218

Launch pending CY H218

Launch pending CY H218

Launch pending CY H218

Launch pending CY Q418

Launch pending CY Q418

Launch pending CY Q418

Launch pending CY Q418

Launch pending CY18

Licensing discussions starting

Licensing discussions starting

Licensing discussions starting

Licensing negotiations underway

Source: AFT Pharmaceuticals

Valuation

We are increasing our valuation to NZ$478m or NZ$4.91 per share from NZ$460m or NZ$4.73 per share, mainly due to increased expectations for Australian revenues and rolling forward our NPV. This was partly mitigated by slight reductions to expectations for New Zealand and RoW and a higher net debt balance. Our fundamental assumptions such as terminal growth and terminal EBIT margin remain unchanged. We expect to update our valuation following additional information regarding the status of Maxigesic launches.

Exhibit 3: DCF sensitivity table (NZ$/share)

Terminal EBIT margin

Terminal revenue growth

15%

25%

34%

38%

42%

-2%

2.29

3.05

3.73

4.03

4.34

-1%

2.37

3.20

3.94

4.28

4.61

0%

2.47

3.38

4.20

4.57

4.93

1%

2.59

3.61

4.52

4.92

5.33

2%

2.75

3.89

4.91

5.37

5.82

3%

2.95

4.25

5.42

5.94

6.46

4%

3.21

4.73

6.09

6.70

7.30

5%

3.58

5.40

7.03

7.76

8.49

Source: Edison Investment Research

Financials

We have increased our revenue estimates for FY19 from NZ$98.0m to NZ$99.6m due to the acceleration in sales in Australia, although this was partially offset by slightly lower estimates for New Zealand and RoW. We have also increased our SG&A expense estimates for FY19 by NZ$1.1m due to higher than expected spending in FY18 and decreased R&D expense estimates by NZ$2.2m due to lower than expected spending and the fact that the significant clinical trials for Maxigesic oral and IV formulations are largely completed. We are also introducing 2020 estimates (see Exhibit 4), which include operating revenue of $120.7m, indicating growth of 21.1%, with growth driven by both Australia and Maxigesic launches globally. The company reported a cash position of NZ$6.8m at the end of FY18 and has a further US$5m (NZ$7.2m) available from a loan facility, which can be drawn by 30 September 2018.

Exhibit 4: Edison forecast changes

NZ$m

2019e

2020e

Old

New

Old

New

Revenue

98.0

99.6

N/A

120.7

PBT, normalised

(0.54)

0.04

N/A

9.86

EPS, normalised (NZ$)

(0.01)

0.00

N/A

0.10

Source: Edison Investment Research

Exhibit 5: Financial summary

NZ$000

2016

2017

2018

2019e

2020e

March

NZ GAAP

NZ GAAP

NZ GAAP

NZ GAAP

NZ GAAP

PROFIT & LOSS

Revenue

 

 

64,014

69,205

80,071

99,634

120,742

Cost of Sales

(40,435)

(43,207)

(45,880)

(52,987)

(59,841)

Gross Profit

23,579

25,998

34,191

46,646

60,901

EBITDA

 

 

(7,821)

(15,125)

(10,479)

1,918

11,729

Operating Profit (before amort. and except.)

(7,667)

(14,982)

(10,353)

2,044

11,855

Intangible Amortisation

114

183

214

214

214

Exceptionals

0

0

0

0

0

Other

(618)

2,245

741

778

817

Operating Profit

(8,171)

(12,554)

(9,398)

3,036

12,886

Net Interest

(3,145)

(3,531)

(2,527)

(2,000)

(2,000)

Profit Before Tax (norm)

 

 

(10,812)

(18,513)

(12,880)

44

9,855

Profit Before Tax (reported)

 

 

(11,316)

(16,085)

(11,925)

1,036

10,886

Tax

42

(58)

(58)

0

0

Profit After Tax (norm)

(10,770)

(18,571)

(12,938)

44

9,855

Profit After Tax (reported)

(11,274)

(16,143)

(11,983)

1,036

10,886

Average Number of Shares Outstanding (m)

96.8

97.1

97.2

97.3

97.3

EPS (NZ$)

 

 

(0.11)

(0.19)

(0.13)

0.00

0.10

EPS - normalised (c)

 

 

(11.12)

(19.12)

(13.30)

4.56

10.13

EPS - (reported) (NZ$)

 

 

(0.12)

(0.17)

(0.12)

0.01

0.11

Dividend per share (c)

0.00

0.00

0.00

0.00

0.00

Gross Margin (%)

36.8

37.6

42.7

46.8

50.4

EBITDA Margin (%)

N/A

N/A

N/A

1.9

9.7

Operating Margin (before GW and except.) (%)

N/A

N/A

N/A

2.1

9.8

BALANCE SHEET

Fixed Assets

 

 

3,249

4,171

8,291

10,933

13,618

Intangible Assets

2,111

2,548

5,118

7,561

10,004

Tangible Assets

407

386

330

529

771

Investments

731

1,237

2,843

2,843

2,843

Current Assets

 

 

62,055

54,060

48,312

54,106

63,527

Stocks

17,686

18,718

24,412

24,399

27,103

Debtors

16,288

19,362

16,954

22,471

24,961

Cash

28,055

15,980

6,946

7,236

11,462

Other

26

0

0

0

0

Current Liabilities

 

 

(13,511)

(15,019)

(18,489)

(19,467)

(21,503)

Creditors

(13,511)

(15,019)

(18,489)

(19,467)

(21,503)

Short term borrowings

0

0

0

0

0

Long Term Liabilities

 

 

(23,161)

(23,426)

(30,654)

(37,854)

(37,854)

Long term borrowings

(23,161)

(23,426)

(30,654)

(37,854)

(37,854)

Other long term liabilities

0

0

0

0

0

Net Assets

 

 

28,632

19,786

7,460

7,718

17,788

CASH FLOW

Operating Cash Flow

 

 

(11,326)

(15,473)

(8,319)

(1,927)

9,251

Net Interest

(3,145)

(3,531)

(2,527)

(2,000)

(2,000)

Tax

42

(58)

(58)

0

0

Capex

(694)

(1,598)

(2,853)

(2,982)

(3,024)

Acquisitions/disposals

0

0

(3,002)

0

0

Financing

38,357

9,042

877

0

0

Dividends

(1,652)

0

(412)

0

0

Net Cash Flow

21,582

(11,618)

(16,294)

(6,910)

4,226

Opening net debt/(cash)

 

 

16,039

(4,894)

7,446

23,708

30,618

HP finance leases initiated

0

0

0

0

0

Other

(649)

(722)

32

(0)

(0)

Closing net debt/(cash)

 

 

(4,894)

7,446

23,708

30,618

26,392

Source: Company accounts, Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by AFT Pharmaceuticals and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

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Sydney +61 (0)2 8249 8342

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by AFT Pharmaceuticals and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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Celyad — Progressing a broad clinical strategy

The placing has given Celyad a cash boost of €46.1m gross adding to the €34m on 31 December 2017. Celyad is designing a set of sophisticated clinical trials to expand understanding of its novel NKR CAR T-cell therapy. The THINK study, focused on AML and colorectal cancers, showed a near complete response (CR) in AML in Q417 plus two other AML responses and two colorectal stable disease cases. The highest THINK dose range should complete in H218. The SHRINK study, NKR CAR T-cells plus chemotherapy in metastatic colorectal cancer (mCRC), has dosed its first patient. The indicative value has been adjusted to €1040m, €85 per share.

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