Medincell (AO) | Buy | R&D event: no groundbreaking announcement, but positive steps

Research evidence excerpt

Medincell (AO) | Buy | R&D event: no groundbreaking announcement, but positive steps

nt from a short-term catalyst point of view was that the management confirmed that AbbVie

remains a top priority for both parties and that the first program is on track to enter clinical studies in the "coming months".

The total milestone package under the AbbVie agreement amounts to EUR315mn per asset, which management indicated should follow

a similar ratio to the Teva deal, implying roughly EUR60mn in development milestones and EUR250mn in commercial/sales-based

milestones.

Note that we continue to see the first clinical study disclosure as a key catalyst for MedinCell in the short term, as it would finally

materialise the AbbVie collaboration, allowing MedinCell to add a new leg to its equity story while also providing a long-term growth

driver to the product.

Platform evolution: BEPO STAR and next generation innovation broaden the addressable market

The R&D presentation also outlined a three-stage platform evolution from BEPO (commercial stage, underpinning Uzedy), BEPO

STAR (patents granted globally, expiring 2040), and a further "Platform Innovation" layer currently in preclinical evaluation.

MedinCell highlighted the new properties of BEPO Star, with our two main takeaways being

1) the 4 to 5-fold reduction in viscosity relative to first-generation BEPO, which enables compatibility with a larger set of injectable

devices (with MedinCell teams teasing for potential autoinjector compatibility).

2) BEPO STAR also extends the platform's capability to hydrophilic small molecules and larger peptides (up to >40 amino acids

per management commentary), which represents a material expansion of the formulation design space, which used to limit the

potential application to newer molecules.