Fluicell Q2-22

Clinical Results on the Horizon

Fluicell offers innovative R&D instruments for single-cell analysis and 3D bioprinting, a business area which we forecast will enter a fast-growth pace, where a revenue of SEK 68.6m is estimated for the year 2026. Based on an applied P/S-multiple of 7x on estimated revenues and a discount rate of 11.4%, this yields a net present value per share today of SEK 21.3 in a Base scenario. Furthermore, Fluicell is developing tissue engineered products, targeting diseases such as cardiac repair, diabetes, and eye disorders, which could be a strong value driver ahead. For illustration, if Fluicell were to receive only 0.5% of the total venture funding raised in 2020/2021 related to their focus areas as an upfront payment through a licensing deal, that would amount to ~USD 10m, which would equal close to the current Market Cap. In conclusion, we see several tailwinds driving value for Fluicell, and where steps in the right direction should reduce the current valuation discount.

• Innovative Offerings Lowering Cost of Research

Fluicell offers innovative technology platforms, products and R&D solutions that enables studies on single- and multi-cell level. Testing with Fluicell’s solutions can be performed with fewer cells and less testing substance, which leads to more flexibility, lower cost and need for biological material for the users, and the ability to generate unique data in ways previously not possible. Analyst Group see this as a strong value proposition, contributing to Fluicell’s growth along with underlying market trends.

• Several Global Customers and Strong Demand

Fluicell has over 30 high-quality names as customers within research, academia and the pharma industry that has expressed great interest in the Company’s products. Examples of partners that Fluicell works with include National Institute of Health (NIH), Oregon University, Roche, Orion Pharma and Novartis. A strong demand from customers is expected going forward which is a major tailwind for propelling future sales growth. Furthermore, Fluicell has several R&D collaborations ongoing, one of them being an EU-funded grant called BIRDIE as a part of FETOPEN Horizon 2020.

• Operating in Vast Markets with Double-Digit Growth

The global markets for single-cell analysis and 3D bioprinting were estimated to be worth USD 3.1bn and USD 1.7bn respectively in 2021. Combined, these two markets are projected to reach USD 9.7bn in 2026 which represent a CAGR of 15%. Additionally, the tissue engineering market was estimated to USD 13bn in 2021 and is forecasted to reach USD 29bn by 2027, corresponding to a CAGR of 14%.

• Adjusted Valuation Range per Share after Exercising Warrants TO2 and TO3

We see that Fluicell is developing according to plan, which is why we reiterate our previous valuation, in terms of market cap, and in all three scenarios based on the forecast for year 2026. Although, taking the exercised warrants in May into account, our valuation range has been adjusted in terms of value per share due to an increase in shares outstanding.