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Written by 08:00 Analys, Research

NANEXA: Lining up to make Nanexa (close to) a pure GLP-1 play

Following the focusing of the roadmap after the rights issue in October, Nanexa has now announced a further streamlining of its activities to extend runway into mid-2025, focusing on the projects most likely to generate near-term revenue and thus reduce need for further external financing. The three focus areas will be the own project NEX-22, the partner project with Novo Nordisk and other well advanced evaluation projects. This means NEX-20 is put on hold, along with NEX-18, until the financial situation allows. While this motivates a cut in our SOTP to 2.6-9.9 (4.3-11.6) SEK per share, due to the exclusion of NEX-20, we see this tactical reprioritization as another investor-friendly move to focus efforts on the most lucrative, assets in the portfolio. All in all, we continue to see with a wide range of possible outcomes for the company’s projects, all supporting a high potential relative to the current share price.

Johan Widmark | 2023-12-21 08:00 

This commissioned research report is for informational purposes only and is to be considered marketing communication. This research report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and Emergers is not subject to any prohibition on dealing ahead of the dissemination of investment research. This research does not constitute investment advice and is not a solicitation to buy shares. For more information, please refer to disclaimer.  


Close to a pure GLP-1 play

The three focus areas that will be prioritized going forward are:
• The own project NEX-22: A one-month depot of the GLP-1 substance liraglutide, within the large and very expansive type 2 diabetes indication. Nanexa now plans to start a clinical phase I study with NEX-22 in Q1 2024 with expected read-out at the end of 2024.
• The partner project with Novo Nordisk: The exclusivity and evaluation agreement covers Nanexa’s drug delivery system PharmaShell together with a specific substance class, not yet announced.
• Other well advanced partner projects where Nanexa sees opportunities for interesting broadening of collaborations with significant revenue potential during the period.

Clinical Trial Application for NEX-22 validated by EMA

Along with the announcement of the tactical reprioritization, Nanexa also announced that the Clinical Trial Application for the Phase I study of NEX-22 in patients with type 2 diabetes has been received and validated by the European Medicines Agency (EMA). This follows the results from the preclinical study of NEX-22 in minipigs confirming the long release profile of liraglutide, also seen in rats. Now Nanexa targets to start the Phase I study based on an approval in the first quarter of 2024.

Runway into 2025

With a cash position of SEK 84m after Q3 and the rights issue, the reprioritization will extend the company’s runway into mid-2025. But we also note a heightened pressure on the company to reach some form of licensing agreement in either of these three prioritized areas during 2024. After a revision of our SOTP, where we exclude NEX-20 for the time being, we now see support for a total rNPV of SEK 2.6-9.9 (4.3-11.6) per share. We continue to see a wide range of potential outcomes for the company’s various projects and partnerships and now look forward to the Phase I trial with NEX-22 and more positive news flow from the partner projects as triggers in 2024.

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