Shield Therapeutics All in the execution

Hardman & Co Report Report Downloads

Shield Therapeutics (LON: STX) is a commercial-stage pharmaceutical company delivering specialty products that address patients’ unmet medical needs, with an initial focus on treating iron deficiency with Feraccru®. Following IPO and EU approval of Feraccru, both in February 2016, STX has made good progress with its clinical and commercial strategy, most recently demonstrating in a phase 3 trial that oral Feraccru is as effective as intravenous iron. Management has secured commercialisation agreements and is now awaiting an FDA decision in 3Q’19. The remaining risks lie in US approval and in successful execution of commercialisation.

Strategy: STX’s strategy is to out-license the commercial rights to its products to partners with marketing and distribution expertise in target markets. These agreements allow STX to retain its intellectual property (IP) and to continue to invest in its R&D pipeline, while benefiting from immediate and long-term value.

Feraccru: A novel iron replacement therapy, Feraccru is approved across Europe for treatment of iron deficiency (ID) in adults with or without anaemia. ID results from depletion of iron stores, affecting production of red blood cells (which carry oxygen). Feraccru is well tolerated, having a similar side-effect profile to placebo.

Valuation: DCF analysis with conservative assumptions generated a risk-adjusted valuation for Feraccru of £184m. This assumes successful commercialisation across Europe and the US in selected patient sub-segments with iron deficiency anaemia, to reach annual sales of $640m/£490m at peak.

Risks: All drug companies carry development risk. However, STX has limited risk because of Feraccru’s simplicity and clinical profile. Also, Feraccru has already received more than one regulatory approval and is generating sales. The main risks are commercial execution and the FDA decision on US approval.

Investment summary: Shield Therapeuticsis at an exciting juncture. It has delivered on all goals set at the time of its IPO in 2016. Feraccru has been validated by regulatory approval and the commercial deals in Europe are likely to be repeated in the US. Given its advancement since IPO and its potential, STX’s market capitalisation of £110.9m, significantly below the IPO value, makes for an interesting proposition.

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn
    Hardman & Co

    More articles like this

    Hardman & Co

    Shield Therapeutics: Positioned for growth and profitability

    Shield Therapeutics plc (LON:STX) is a commercial-stage pharma company delivering specialty products that address patients’ unmet medical needs, with an initial focus on iron deficiency (ID). Since its US launch in July 2021, Shield has been

    Hardman & Co

    Shield Therapeutics: Accrufer momentum building

    Shield Therapeutics plc (LON:STX) is a commercial-stage pharma company delivering specialty products that address patients’ unmet medical needs, with an initial focus on iron deficiency (ID). Following launch of Accrufer® in the US, in July 2021, the

    Hardman & Co

    Shield Therapeutics: PBMs have bought in to Accrufer

    Shield Therapeutics plc (LON:STX) is a commercial-stage pharma company delivering specialty products that address patients’ unmet medical needs, with an initial focus on iron deficiency (ID). Following the US launch of Accrufer® in July 2021, the

    Hardman & Co

    Shield Therapeutics: Focused on US market penetration

    Shield Therapeutics plc (LON:STX) is a commercial-stage pharmaceutical company delivering specialty products that address patients’ unmet medical needs, with an initial focus on treating iron deficiency (ID). Accrufer® has just been launched in the US by

    Hardman & Co

    Shield Therapeutics: Accrufer® launch on schedule

    Shield Therapeutics plc (LON:STX) is a commercial-stage pharmaceutical company delivering specialty products that address patients’ unmet medical needs, with an initial focus on treating iron deficiency (ID). Feraccru®/Accrufer® has been approved by the regulators in both

    Hardman & Co

    Shield Therapeutics US market offers a significant opportunity

    Shield Therapeutics plc (LON:STX) is the topic of conversation when Dr Martin Hall Analyst at Hardman & Co joins DirectorsTalk. Martin talks us through the company’s underperformance, explains how he thinks the shares could recover, how returns

    Hardman & Co

    Shield Therapeutics: Reassessing the US opportunity

    Shield Therapeutics plc (LON:STX) is a commercial-stage company delivering specialty products that address patients’ unmet medical needs, with an initial focus on treating iron deficiency (ID). Feraccru®/Accrufer® has been approved by the regulators in both Europe

    Hardman & Co

    Shield Therapeutics: Optimism over US deal

    Shield Therapeutics plc (LON:STX) is a commercial-stage company delivering specialty products that address patients’ unmet medical needs, with an initial focus on treating iron deficiency (ID). Feraccru/Accrufer has been approved by the regulators in both Europe

    Hardman & Co

    Shield Therapeutics Plc Good demand for Feraccru in Europe

    Shield Therapeutics (LON:STX) is a commercial-stage company delivering specialty products that address patients’ unmet medical needs, with an initial focus on treating iron deficiency (ID) with ferric maltol. Recent news that the FDA had approved this