A New Realm of Opportunity
​Realm Therapeutics (RLM) is an emerging specialty bio-pharmaceutical company developing therapeutic products to treat immune related disorders in adults and children, using its proprietary hypochlorous acid-based technology. RLM (formerly PuriCore plc) is now a focused entity, having divested its non-strategic supermarket retail business for $13.5m to Chemstar Corp in October 2016.
RLM is preparing to take its pipeline of novel pharmaceutical therapies, which hinges on patented high concentration formulations of hypochlorous acid, into Phase II studies during 2017. RLM will tackle unmet need for efficacious alternative treatments in prevalent forms of inflammatory disease, in indications that have attracted significant recent M&A interest.
Atopic Dermatitis, affects c20m people in the US alone and is a largely paediatric condition with few treatment alternatives to first-line topical steroids, until approval of Pfizer’s boron-based Eucrisa in December. Early stage study results from 2016 illustrate that RLM’s topical HOCl solution for atopic dermatitis, PR022, demonstrates promising signs of efficacy in preventing and alleviating the symptoms of AD, with no adverse effects.
While RLM is an emerging pharmaceutical developer, M&A multiples illustrate potential of later stage and broader dermatology and ophthalmology pipelines: Eucrisa was the chief motivation for Pfizer’s $5bn buyout of Anacor in 2015 post Phase III. Nicox acquired the remaining shares of Aciex for up to $120m, primarily to boost its ophthalmology pipeline including a Phase III AC candidate.
We estimate that RLM has sufficient funding, based on our end of December 2016 cash estimate of $19.8m, to carry out Phase II trials for PR022 and PR013. Looking forward, if RLM receives approval to start Phase II studies for its pipeline and assuming that it raises sufficient funding to complete the Phase II program, then our valuation would increase materially.
Our DCF valuation of RLM at the current time is £40m using a sum-of-the-parts valuation at a discount rate of 12.5%, which equates to 80p/share. Indeed, the current market cap values RLM at less than our estimated year end cash position, potentially offering an interesting entry point to a novel anti-inflammatory pipeline.
Realm Therapeutics is a clinical stage biopharmaceutical company focused on utilizing its proprietary immunomodulatory technology. Co. is engaged in the development of prescription treatments for inflammatory diseases including indications in Dermatology and Ophthalmology. Co. has developed proprietary formulations of its technology for initial application in Atopic Dermatitis (PR022) and Allergic Conjunctivitis (PR013). Co.'s first product, PR022, is a proprietary non-alcohol based, topical gel, which has shown therapeutic effect in pre-clinical models of Atopic Dermatitis. Co.'s second product, PR013, a proprietary topical ophthalmic solution for the treatment of Allergic Conjunctivitis.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.