Advanced Discussions with Prospective Licensing Partners
Pharma Equity Group (“PEG” or “the Company”) has recently refined the Company’s execution strategy, prioritizing resources toward three key candidates, RNX-051, RNX-011, and RNX-041, where the Company identifies the shortest path to market and strong interest from potential licensing partners. Discussions with prospective partners have advanced, particularly for RNX-051, with negotiations intensifying in Q1-25 and the Company anticipating formalizing agreements in H2-25. Supported by a solid financial foundation following the Q4-24 directed share issue, a cost-efficient operational model, and expected revenues in H2-25, PEG is estimated to be financed until Q2-26. With a newly appointed executive team bringing a proven track record in funding, strategic execution, and clinical acceleration, PEG is well-positioned to deliver on the Company’s new strategy. Analyst Group has made slight adjustments to the estimates for 2025-2027, resulting in a potential present market value of DKK 959m, corresponding to DKK 0.8 (0.8) per share in a Base scenario.
- Ongoing Discussions with Potential Licensing Partners
Interest from potential licensing partners has gained momentum in Q1-25 with PEG advancing discussions particularly regarding RNX-051, the Company’s candidate targeting Colon Adenomas and Colon Cancer. PEG expects to finalize agreements in H2-25, as reflected in the Company’s DKK 11m revenue guidance for 2025, primarily driven by upfront payments. Simultaneously, PEG’s focus on cost efficiency is expected to narrow the pre-tax loss to DKK 4–7m, which would mark a notable improvement from 2024. Enhanced financial flexibility strengthens PEG’s ability to capitalize on licensing opportuneities, which Analyst Group identifies as a pivotal catalyst for 2025.
- Financial Flexibility Supports Accelerated Development
During Q4-24, PEG strengthened the Company’s financial position through a directed share issue, raising DKK 51.1m in gross proceeds, including DKK 12.6m from convertible debt conversion. This non-cash transaction resulted in a net cash inflow of DKK 38.5m, with DKK 25.8m allocated to debt reduction, leaving DKK 12.7m in net proceeds. The shares were issued at DKK 0.25, a 19% premium, reflecting strong investor confidence in PEG’s prospects. In Q1-25, PEG secured additional financial headroom through loans and commitments totaling approx. DKK 13m, providing an estimated 12-month runway. Further funding discussions, primarily regarding convertible loans, are ongoing with both existing and new investors.
- Key Value Drivers Emerging in 2025
In light of the Q4 report, we have lowered our 2025-2027 revenue estimates. However, with a more streamlined cost structure expected, we anticipate an improved pre-tax loss (EBT) in the short term. Analyst Group reiterates the motivated potential present value of DKK 0.8 (0.8) per share in a Base scenario, as we see 2025 as a pivotal year for PEG, with substantial licensing triggers yet to be fully reflected in the Company’s valuation.
