Oryzon Genomics - Clinical ramp in Q3; several catalysts approaching

Oryzon Genomics reported Q322 results that are largely in line with our expectations. The clinical ramp up of its key assets, iadademstat and vafidemstat, has meant R&D expenses were higher than our estimates, largely offset by the higher R&D tax rebates. The Q322 net loss of US$0.6m (€0.7m) brought the 9M22 net loss to US$1.9m (€2.0m). As a result, we expect FY22 operating losses to decrease to €5.0m versus our previous estimates (€7.0m), reflecting the timing of R&D spend and associated tax rebates. Oryzon closed the quarter with a gross cash position, including marketable securities, of US$27.1m, implying an annual cash burn of approximately €14m, which assuming full drawdown of the €20m convertible debt facility, will see the company through into Q224 (including outstanding debts repayments). We value Oryzon at €861m or €16.2 per share, up from €802m or €15.1/share previously.