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Summary of Highlights
- On May 17, 2018 Entera filed an updated F-1 in preparation for a IPO on the NASDAQ.
- Recall that, on January 26, 2018, Entera Bio informed DNA that it had not completed the process of issuing and listing shares for trading as planned.
- In our opinion, the effect of the unactualized offering on Entera's development plans is immaterial.
- DNA publishes financial reports on a bi-annual basis. At December 31, 2017 Entera had an annual operating loss of approximately $11.3M, an increase of approx. $6M compared to 2016, mainly a result of NASDAQ registration, and other related IPO expenses.
- Entera Bio continues its efforts to raise capital and plans to submit a pre-IND to the FDA (505(b) (2) regulatory path) for its EB-613 asset.
- If Entera will receive approval from the FDA for progressing along this regulatory path, it will have a significantly positive effect on the drug's time to market. Currently, the company is expected to initiate Phase 2b/3 trials, with their EB-612 asset, PTH 1-34 for treating hypoparathyroidism in H2-2018.
- Financially, it should be noted that Entera recently completed a $13M financing round, and therefore, in our opinion, at present, the company has sufficient funding to complete the necessary preparations prior to initiating the aforementioned experiments.
- At the same time, we expect Entera to try and raise public and/or private capital in the coming months. If Entera raises sufficient capital, there should be no delay in its clinical development program.
- BeamMed retained its sales pace, with a key focus on penetrating the US market
- Revenues totaled NIS 12M in 2017, similar to 2016, with a high proportion of sales coming from Asia, and NIS 900K from the US.
- BeamMed's sales for 2017 reveal a change in geographic segmentation with sales growing in the USA compared to 2016.
- Sales and marketing expenses for 2017 increased by NIS 200,000 from 2016.
- We keep DNA's value at approximately $30.9 million (NIS 108.7M) corresponding to a target price of $0.23 (NIS 0.79) per share.
About the company - Israeli holdings firm DNA Biomedical Solutions Ltd. was founded in 2004 and went public on the Tel Aviv Stock Exchange in 2007. DNA has two key holdings, respective 35% and 40% stakes (both fully diluted) in biomedical companies - Entera Bio and BeamMed.
Entera Bio Ltd. (is a drug development company, founded in 2009 by DNA and Oramed, the latter from whom it has licensed a unique drug delivery platform for oral administration of pharmaceutically active large molecule proteins that are nowadays injected. Entera is conducting clinical trials for two candidate drugs treating three indications: hypoparathyroidism, osteoporosis, and non-union fractures.
BeamMed Ltd. and its global subsidiaries, are medical device companies that deliver an ultrasound based screening solution for determining a patient's risk of developing osteoporosis, with unique additional product features. Please click here (https://ww2.frost.com/research/equity-research/)
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SOURCE Frost & Sullivan