Genkyotex - Ready to make a dent in the fibrosis market

Genkyotex has initiated a Phase II investigator-sponsored trial in patients with Type 1 diabetes (T1D) and kidney disease (DKD). Separately, it has announced the positive outcome of a safety review of its Phase II trial with GKT831 in patients with primary biliary cholangitis (PBC) with no adverse events or patient dropouts. Interim data have been pushed back slightly to autumn 2018 from mid-2018 and full data to H119 from end-2018 due to a slow rate of activation of a number of research centres. Additionally, the original deal with the Serum Institute of India Ltd (SIIL) has been expanded and Genkyotex is now eligible to an additional €100m in milestone payments plus royalties on sales. We include the DKD indication and the new terms with SIIL in our valuation, which is now €338.7m or €4.35/share.