Ryvu Therapeutics - Report - 3Q22 Results

Ryvu Therapeutics reported 3Q22 results with the following highlights:
Key issues in the upcoming months:

Recommendation: Buy 12M TP: PLN 68.7

Ryvu Therapeutics reported 3Q22 results with the following highlights:

â– Revenues PLN 20.5mn (+176% y/y, 8% below our estimates and 7% above market consensus). Company booked upfront payment from Exelixis of PLN 14mn (in line with our estimates). Revenues from grants amounted to PLN 5mn (vs. PLN 7mn year ago, vs. PLN 7mn expected by us).

â– Total operating expenses amounted to PLN -34mn (+9% y/y). Total expenses excluding non-cash cost of incentive program amounted to PLN 30mn (vs. PLN 23mn year ago). The growth of this cost is primarily related to the higher by 68% y/y cost of external services, higher by 19% y/y cost of materials and higher by 18% cost of employees. Cost of incentive program amounted to PLN 4mn (vs. PLN 8 year ago, vs. PLN 4mn expected by us)

â– Reported EBITDA loss amounted to PLN 10mn (vs. PLN 20mn year ago, vs. PLN 10mn expected by market consensus, vs. PLN 10mn expected by us).

â– EBITDA adjusted by incentive program amounted to PLN -6mn (vs. PLN -12mn year ago, vs. PLN -6mn expected by us)

â– Net loss amounted to PLN -12mn (vs. PLN -23mn year ago, vs. PLN 12mn expected by market consensus, vs. PLN 13mn expected by us).

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â– Net cash came in at PLN 40mn (vs. PLN 41mn in 2Q22, vs. PLN 42mn expected by us).

Our view: NEUTRAL

The 3Q22 results came in line with our and market expectations and does not change company’s investment story. The upfront payment from Exelixis came fully in line with our expectation and operational cost came even slightly below our estimates, as a result company was managed to show stable level of net cash at the end of 3Q22 compared to 2Q22. In the upcoming quarter, we expect next small milestone payments from Exelixis (aprox. USD 3mn) as company said that it expect to receive another payments within a year after conclusion of partnering deal.

Key issues in the upcoming months:

â– RVU120: “Safety and efficacy data from the ongoing Phase Ib clinical study in relapsed/refractory (r/r) acute myeloid leukemia (AML) and high-risk myelodysplastic syndrome (HR-MDS) will be presented at the 2022 ASH meeting. To date, RVU120 demonstrated single-agent activity with a complete response and disease stabilizations in 10 patients with r/r AML or HR-MDS.”

â– RVU120: “On-target activity of RVU120 in AML and HR-MDS patient samples will also be presented at the ASH. As of the cut-off date, inhibition of pSTAT5 reached >50%, a threshold that based on the preclinical predictions is sufficient for robust efficacy in certain groups of super-responder patients.”

â– SEL24. “Ryvu’s partner Menarini Group will present preclinical data showing SEL24 (MEN1703) potential for clinical efficacy in multiple myeloma (MM), Hodgkin’s lymphoma (HL), and diffuse large B-cell lymphoma (DLBCL) at the upcoming ASH meeting.”

Analyst: Marcin Górnik marcin.gornik@pekao.com.pl

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