Results in line, but cash position lower than expected - HOLD - TP 9,1€ (vs 9,5€)
Biopohytis 2015 results were announced yesterday. As we anticipated (see our Biotech Sector Review, dated 01/25/2016), net loss for the year, at €-3.3m, was lower than our anticipation of €-6.9m last July at IPO, due to the fact that the bulk of phase II-b expenditure should be billed in 2016 and 2017. On the other hand, cash position at 12/31/2015 was €3m lower than our estimate, due to the purchase of intellectual property from the industrial partners Metabrain Research and Iris Pharma for €2.3 million, and expenses associated with the capital increase of €1.4 million. To date, we estimate cash in hand above €8m, assuming cash burn of €0.6m/month in 2016e. We adjust our target price from €9.5 to €9.1 taking into account this lower than expected cash position. Though this target price remains significantly higher than the recent share price, we maintain our HOLD rating while waiting for the authorisation (expected in H2 16) for the start of phase II-b studies, which should validate Biophytis’ medical approach in aging.Biophytis SA, formerly Institut Biophytis Sas is a France-based company engaged in the healthcare industry. The Company is a biotechnology entity specialized in the development of drug candidates to treat ageing diseases. Its two programs relate to sarcopenia (loss of muscle functionality) and Age Related Macular Degeneration (ARMD). Biophytis SA is engaged in the clinical and regulatory development of its drug candidates, such as Sarconeos (BIO101) and Macuneos (BIO201), simultaneously in the United States and domestic market.
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