Shield Therapeutics - All eyes on a US partnering deal

Shield Therapeutics (STX) has reported FY19 results; total revenue of £0.7m reflects royalties on Feraccru sales from European partner Norgine. 2019 achievements include FDA approval of STX’s key asset for the treatment of iron deficiency in patients with any underlying cause – the broadest possible label – in the critical US market. Momentum has continued into 2020 with an out-licensing deal with China-based Beijing Aosaikang Pharmaceutical (ASK Pharm) that covers China, Hong Kong, Macau and Taiwan. The next key inflection point is a US partnering deal, and discussions are ongoing with the aim of closing a transaction at the earliest opportunity in 2020. We expect Accrufer launch later this year once a partner has been found. STX reported a cash balance of £10.4m at 30 April 2020 implying a cash runway to Q121. We value Shield at £381.7m.