Edison initiates coverage of Abzena Plc
Abzena offers a range of key services and technologies for the development of safer and more effective biological products. Antitope (immunogenicity testing, protein engineering, cell line development) and PolyTherics (bioconjugation, polymer/synthetic chemistry) are the operating business units.
Our fair value for Abzena is ?95m (97.5p/share), based on a three-phase DCF of the services business (?35.5m) and risk-adjusted royalties from existing and future licensed antibody/ADC products (?43m). Cash of ?18.7m (at 30 September 2014), after a ?20m IPO on AIM, provides financial stability and flexibility to seek new assets.
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