OUTPERFORM: We initiate coverage on Ascelia Pharma with a stepwise valuation approach. For early 2020, we see a reasonable valuation range between SEK 26-30 per share suggesting 35-56% upside to the current share price. For early 2021, we see a range between SEK 39-48 per share suggesting 103-150% upside to the current share price. For 2022, we see a reasonable valuation range between SEK 60-77, suggesting 213-301% upside to the current share price.
Contrast enhanced liver MRI focusing on orphan indication
Ascelia Pharma is a Swedish based oncology company in late-stage development with a primary focus on contrast enhanced liver MRI for those with severely impaired kidney function. The use of contrast agents in this population is today generally not recommended due to safety concerns. Another focus area for product development is an oral version, Oncoral, of the well established injectable cancer medicine irinotecan. Oncoral may start phase 2 development during 2019. The company’s management has extensive experience from rare diseases at large corporations, including Genzyme (acquired by Sanofi) and Wilson Therapeutics (acquired by Alexion).
Marketing material commissioned by Ascelia Pharma AB