Altimmune Inc. (NASDAQ:ALT)

Transcription

1 NEW YORK SÃO PAULO SHANGHAI Altimmune Inc. (NASDAQ:ALT) - Specialty Pharma Research Note Data for 2 clinical stage candidates -- a potential cure for chronic hepatitis B and a novel treatment for seasonal influenza -- expected 1Q2018. Data for 2 fully government-sponsored anthrax vaccines expected 2Q2018. Company Description operates as a clinical stage immunotherapeutic biotechnology company. The company discovers and develops novel products that engage, stimulate, and improve immune responses for the prevention and treatment of acute respiratory and chronic viral infections and cancer. Altimmune serves patients worldwide. Key Data 52-Week Range Shares Outstanding Market Cap Months Avg Volume 249, Total Cash Total Debt - Key Financials FY14A FY15A FY16A Revenue EBIT EBITDA Earnings CFF One-Year Price & Volume $16 $14 $12 $10 $8 $6 $4 $2 $0 2/6/17 3/6/17 4/6/17 5/6/17 6/6/17 7/6/17 8/6/17 9/6/17 10/6/17 11/6/17 12/6/17 1/6/18 2/6/ Millions Price Volume 845 Third Ave, Fl 6 New York, NY (646) research@jgrcap.com

2 Altimmune s Primary Product Candidates HepTcell Description a hepatitis B immunotherapy that potentially offers a cure, which is not offered via incumbent treatments the synthetic peptide product candidate is underpinned by ALT s Densigen technology, which is designed to eradicate infected cells from the liver by stimulating the immune system management expects HepTcell to be efficacious against all HBV genotypes and amongst all ethnic groups as it s designed as a universal HBV immunotherapy Trial Status NasoVAX data read-out expected 1Q2018 its Phase 1 consists of 60 patients in the UK and South Korea with a chronic hepatitis B infection patients are dosed with a low or high dosage of HepTcell (also possibly an adjuvant) on days 1, 29, and 57 the primary endpoint is safety and tolerability, with T cell response as the secondary endpoint Phase 2 is planned for 2H2018 with focus on dosage-level confirmation and treatment-schedule evaluation Description recombinant flu vaccine product candidate that s intranasally-administered potentially providing a broader and faster rapid immune response than incumbent flu vaccines by using an adenovector to gain influenza-antigen expression in the target cell Trial Status Phase 2 commenced 2H a 60-patient trial to evaluate 3-dose levels of a monovalent version of ALT s vaccine specifically, antibody response to matched and divergent influenza strains is measured, as well as the mucosal and cellular immune responses against influenza planned for 2H2018 is an evaluation of healthy young adult and elderly subjects for a quadrivalent seasonal NasoVAX formulation research@jgrcap.com 2

3 Anthrax vaccines: NasoShield and SparVax-L Description both fully funded via government contract NasoShield is designed to provide anthrax protection via a one-time intranasal administration rather than multiple injections based on ALT s RespirVec proprietary technology SparVax-L is a next-generation lyophilized anthrax vaccine that was acquired in ALT s PharmAthene merger a 6-year stability track record has been demonstrated Trial Statuses NasoShield: planning to commence Phase 1 in 1Q2018 placebo-controlled and will measure dosage cohorts with a single intranasal dose financed via a $127mn contract that provides enough funding through Phase 2 SparVax-L: bridging study data read-out planned for 1H2018 fully backed by a $15mn NIAID contract that lasts through August 2018 Platform Technologies that Underpins Product Candidates Respirvec viral-based delivery platform activates multiple arms of the immune system and its primary function is providing protection against pathogens intranasally administered rather than needle administration management expects products based on this platform technology to be manufactured on a short production cycle via the PER.C6 cell line research@jgrcap.com 3

4 Densigen a synthetic peptide immunotherapeutic platform technology that promotes T-cell immunity against myriad indications the technology includes a fluorocarbon tail -- a stabilizing feature that potentially provides a lasting immune-system activation may be agnostic to individualistic immune system differences with its ability to elicit human leukocyte antigen (HLA) type-independent immune response source: research@jgrcap.com 4

5 Financial Analysis Income Statement Income Statement Summary 12/31/ /31/2017 T12M 12/31/ /31/ /31/ /31/2013 Revenue Operating Income Pretax Income Income bef XO Items Net Income Basic EPS Before XO Items Basic EPS Diluted EPS Before XO Items Diluted EPS Dividends per Share EBITDA Return on Common Equity Balance Sheet Balance Sheet Summary 12/31/ /31/2017 T12M 12/31/ /31/ /31/ /31/2013 Total Current Assets Total Long-Term Assets Total Assets Total Current Liabilities Total Long-Term Liabilities Total Liabilities Total Shareholders' Equity Shares Outstanding Book Value per Share Tangible Book Value / Sh Shareholder Equity/Total Liab Cash Flow Statement Cash Flow Summary 12/31/ /31/2017 T12M 12/31/ /31/ /31/ /31/2013 Net Income Depreciation and Amortization Change in Working Capital Cash - Operating Activities Capital Expenditures Cash - Investing Activities Cash - Financing Activities Net Changes in Cash Free Cash Flow Free Cash Flow / Basic Sh Free Cash Flow / Diluted Sh Cashflow per Share research@jgrcap.com 5

6 Fundamentals Analysis Per Share Data EPS (Trailing 12m) 1.66 Dividend per Share 0.00 Book Value / Share 3.12 Sales / Share (Trailing 12m) 0.83 Cash Flow / Basic Share Free Cash Flow / Share Profitability EBIT -11 Operating Margin Pretax Margin Return on Assets Return on Common Equity Return on Capital Asset turnover 0.09 Cash Flow Analysis Price / Cash Flow 0.15 Price / Free Cash Flow 0.30 Cash Flow / Net Income 1.04 Dividend Payout Ratio 0.00 Cash Generated / Cash Req Cash Dividend Coverage Cash-oper / Sales Eff Interest Rate 5.45 Structure Current Ratio 1.09 Quick Ratio 1.08 Total Debt to Total Assets 0.00 Total Debt to Com Equity 0.00 Acct Receivable Turnover 5.35 Inventory Turnover Gross Margin EBIT / Total Inter research@jgrcap.com 6

7 JGR Capital Information Headquarters Address 845 Third Ave, Fl. 6 New York, NY Contact research@jgrcap.com Disclosure This report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the Risk Factors section in the SEC filings available in electronic format through SEC Edgar filings at The research analysts principally responsible for this research preparation do not receive compensation that is based upon any specific investment banking services or recommendations and can be compensated based on factors relating to the overall profitability of JGR Capital ( firm ). As of the date of research distribution, neither the firm nor the principal research analysts beneficially own 1% or more of any class of common equity securities for this issuer (including, without limitation, any option, right, warrant, future, long or short position). The securities of the issuer(s) discussed in this research may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This research does not constitute a personal trading recommendation or take into account the particular investment objectives, financial situation or needs of an individual reader of this report, and does not provide all of the pertinent information to make an investment decision. JGR Capital does not provide investment banking services nor has it received compensation for investment banking services from the issuers covered in this research content. The firm does not make a market in the issuer s securities. It has received compensation from the issuer for providing non-investment banking services to this issuer. The non-investment banking services provided to the issuer includes investor relations advisory and services, production of this research content, comprehensive reporting analytics, and financial analysis. The fees for these services vary on a per-client basis and are subject to the amount and category of provided services. Firm analysts and members of the research production team are prohibited from holding or trading securities in the issuer. Additional information is available upon request. JGR Capital s research contents are based on data obtained from sources that it believes to be reliable and does not purport to be a complete statement of all material factors. This report is for informational purposes and is not a solicitation of orders to purchase or sell securities. No part of this material may be copied, photocopied or duplicated in any form or by any means, or redistributed without prior written consent from JGR Capital. All rights reserved.