Medlab Clinical - FY23 a year of clinical development

As part of its transformation into a pureplay biotech, Medlab is preparing an IND submission for NanaBis and plans to begin clinical trials with both NanaBis and NanoCBD in the next 12 months. In FY22, Medlab’s total revenue from continued operations increased 35.3% y-o-y, however, total group revenue was up 5.3%% y-o-y, due to the licensing of the nutraceutical business in October 2021. The net cash outflow from operating activities in FY22 was A$9.3m, in line with our estimates. We see a potential Nasdaq listing as providing support for Medlab and the development pipeline. We value Medlab at A$236.1m or A$103.5/share, from A$239.8m or A$105/share (adjusted for the share consolidation) previously.