##{"id":87187,"date":"2020-07-01T09:32:49","date_gmt":"2020-06-30T23:32:49","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=87187"},"modified":"2020-07-01T09:32:49","modified_gmt":"2020-06-30T23:32:49","slug":"research-imagion-biosystems-strong-financing-in-place-to-support-execution-strategy","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2020\/07\/01\/research-imagion-biosystems-strong-financing-in-place-to-support-execution-strategy\/","title":{"rendered":"RESEARCH: Imagion Biosystems, Strong Financing In Place To Support Execution Strategy"},"content":{"rendered":"

Pitt Street Research sees a re-rating on the cards for Imagion Biosystems, which has secured strong financing through multiple avenues<\/em><\/p>\n

By Pitt Street Research<\/p>\n

An innovative medical device company<\/strong><\/p>\n

Imagion Biosystems ((IBX)) is an Australian medical device company whose MagSense diagnostic imaging technology, currently in early-stage development, can potentially improve on PET and MRI imaging modalities.<\/p>\n

Imagion is currently in preclinical development, with the first human pilot studies of the technology targeted for 2020. The FDA granted MagSense a Breakthrough Device designation in July 2019.<\/p>\n

Imagion to commence Phase I clinic study in late FY20<\/strong><\/p>\n

Imagion intends to undertake a first-in-human study of the MagSense technology initially in HER2-positive breast cancer in Q4 FY20, to be followed later in prostate cancer and ovarian cancer.<\/p>\n

With HER2-positive breast cancer, the goal will be to establish a non-invasive method of detection of cancer in the lymph nodes, compared with the conventional biopsy of the sentinel lymph nodes.<\/p>\n

Imagion intends to sell MagSense on a ‘printer and ink’ model, where a low sales price for the SQUID equipment (US$0.5m at a 50% gross margin) is matched by a higher selling price for the nanoparticles (US$1,500 per test at an 80% gross margin).<\/p>\n

We estimate Imagion can potentially look to make its commercial launch in 2022 or 2023.<\/p>\n

Imagion signs deal with Siemens Healthineers<\/strong><\/p>\n

In May 2020, Imagion signed a collaboration agreement with a leading medical technology firm Siemens Healthineers to explore the use of Imagion’s MagSense nanoparticles as an MRI contrast agent for patients with HER2 metastatic breast cancer.<\/p>\n

The deal will also pave the path for Imagion to further explore MRI as a commercialisation strategy.<\/p>\n

Funding raised through multiple avenues<\/strong><\/p>\n

In April 2020, Imagion raised $2.5m through a renounceable rights issue, exceeding its initial goal of $2m.<\/p>\n

Furthermore, Imagion generated funds through sale of nanoparticles formulation to other medical equipment manufacturers ($0.56m) and R&D tax incentives worth $4.2m.<\/p>\n

This was further supported by an improvement in cash flow generation on account of prudent fiscal management in 2019.<\/p>\n

Imagion is undervalued based on our numbers<\/strong><\/p>\n

We value Imagion at 12 cents base case and 26 cents optimistic case on a risk-weighted DCF basis.<\/p>\n

We see Imagion being re-rated closer to our valuation range on the back of improved sentiment towards MagSense as a Breakthrough Device, as the company takes the device to clinic.<\/p>\n

Download the full report<\/strong><\/p>\n

Earlier in the week the report above was released by Pitt Street Research for which FNArena is a partner in distribution. The full report can be accessed here:<\/p>\n

https:\/\/www.fnarena.com\/index.php\/pitt-street-research\/IBX\/<\/a><\/p>\n

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n

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