Focusing on further PQ912 development strategy

Operating costs in H117 were largely in line with our expectations, while a one-off payment was a welcome resolution of Probiodrug’s long-outstanding potential tax liability. Following the overall positive Phase IIa data with PQ912 for Alzheimer’s disease (AD) released in June 2017, Probiodrug reiterated in its H117 report that all strategic options for further development are on the table. Depending on available funding, the company could initiate the next study looking at the long-term treatment of AD patients (the Phase IIa SPAHIR treatment period was three months) or, if a suitable partner emerges, a deal could alleviate the late stage PQ912 development. Our valuation has increased slightly to €496m or €61/share.