Edison Issues ADR Update On Prima Biomed (PBMD)

LONDON, UK / ACCESSWIRE / October 2, 2017 / Data presented at the European Society for Medical Oncology (ESMO) Congress by third parties has positive implications for Prima Biomed’s (NASDAQ: PBMD) LAG3 pipeline, both its in-house IMP321 APC activator and the anti-LAG3 program out-licensed to Novartis. Prima itself presented encouraging data from ongoing studies of IMP321 in FY17, including a 47% response rate in the run-in phase of its AIPAC breast cancer Phase II. Prima earned a $1m milestone from Novartis in August, showing that the partnered anti-LAG3 program is progressing. The company guides that the ~$5m raised from US investors in July extends the funding runway to Q4 CY18. We increase our valuation to $206m (vs $192m) or $8.75/ADR.

We have rolled forward our DCF model and updated our financial forecasts to account for the $5m capital raise and FY17 results. Our valuation has increased to $206m, which is equal to $8.75 per ADR (undiluted) or $6.14 per ADR diluted for options, warrants and convertible notes (both unchanged). Company guidance is that cash reserves will be sufficient to fund operations to Q4 CY18, excluding any further milestone payments from partners Novartis and GlaxoSmithKline. Milestone revenue (we model ~ $6m in FY19) would extend the cash runway.

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