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Gearing up for growth

Published 19-DEC-2018 00:00 A.M.


2 minute read

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Overview: Invitrocue Ltd ("Invitrocue", "the Company") is a biotechnology company focused on oncology and bio-analytics. The Company’s primary product is Onco-PDO ("Onco-PDO"), a personalised cell-based screening technology for the purpose of identifying the right drug for the right patient. Patient-derived cancer cells are cultured in laboratories, gathering patient-specific cancer information which is then tested against an approved list of drug and treatment options. Invitrocue operates in Singapore, China, Hong Kong, UK, Australia, and Germany. Since Wise-owl initiated coverage in May 2018, Invitrocue has expanded its global footprint, added expertise to the Board, and accelerated marketing initiatives for Onco-PDO.

Catalysts: Invitrocue is in the process of building a global network of clinical partnerships and joint laboratories to fast-track the commercialisation of Onco-PDO, which has received its first patients in 2018. To date, Invitrocue has attracted global industry leaders and funded the business via a mix of grants and placements, with the most recent raising executed at a price premium. As the Company’s channel partner network matures, volume growth in patient numbers will be the primary catalyst. The company’s ability to onboard channel partners and achieve market penetration has the potential to deliver the first meaningful revenues in 2019.

Hurdles: As Invitrocue gears up for growth, the Company remains reliant on external capital to fund its market development program and there is no guarantee it can continue to procure funding at favourable terms for shareholders. The Company has a limited track record and the commercial appeal of its Onco-PDO technology remains to be validated. While early signs are encouraging, a wider market acceptance has yet to be established for Onco-PDO.

Investment View: Invitrocue offers speculative exposure to demand for cancer analytics technologies. The Company is strategically expanding its channel network with a view to rolling out Onco-PDO to international markets and a progressive rise in patient numbers is the primary catalyst over the coming quarters. Principal hurdles include funding demand, the Company’s limited track record, and general market acceptance risks. Invitrocue has managed to raise funds at a premium to the market price, demonstrating investor confidence in the Company’s value proposition. These funds have been used to build a large-scale sales and marketing infrastructure, which has the potential to deliver the first meaningful revenues in 2019. We resume coverage of Invitrocue to monitor management’s ability to execute its growth strategy.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

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The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

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