Edison Investment Research Limited
London, UK, 31 August 2022
Quantum Genomics (ALQGC): Initiation — A fresh take on cardiovascular medicine
Quantum Genomics is focused on the development of new classes of cardiovascular medicines. Firibastat, the company’s lead clinical asset, is in development for the management of treatment-resistant hypertension (TRH) and post-myocardial infarction heart failure (post-MI HF). We value Quantum Genomics at €701.3m or €20.3 per share, with 92% of this attributable to firibastat in TRH. In the near term, readouts from two Phase III trials in TRH are the main catalyst for the company. In our view, firibastat’s unique mechanism of action offers the potential for significant differentiation in the sizeable cardiovascular drug market. If results from Phase III are positive, the company could file an NDA with the FDA by end-2023. With a handful of licensing deals already in place, we see the timely signing of licensing deals in the United States and EU5 as essential to maximising the commercial success of firibastat. We estimate that, post the capital raise, end-April net cash was c €20.5m, providing a runway into Q223.
We value Quantum Genomics at €701.3m or €20.3 per share, based on a risk-adjusted NPV for firibastat in TRH and post-MI HF, including an estimated net cash position of €20.5m at end-April 2022. We apply a discount rate of 12.5% and assume a licensing deal for the United States and EU5 will be found pre-commercialisation of firibastat in TRH (estimated launch in 2024), in line with the company’s strategy.
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