2021 starts well with XF-73 study fully recruited

Destiny has announced that the patient recruitment for its Phase 2b study, conducted under a US IND, is complete and that they are on-track to report results for this study before the end of Q1 2021. The recent update on the progress of its recently acquired Phase 3-ready biologic NTCD-M3 and the completion of the fundraising required to acquire and develop the asset, also means that investors have considerable news flow to look forward to in 2021.

Their internally developed product XF-73, for the prevention of post-surgical Staphylococcal infections, has completed the target recruitment of 125 patients scheduled for open heart surgery. This announcement means that they are on track to keep their promise of top-line results from this study before the end of Q1 2021.

Destiny also recently announced progress on the recently-acquired Phase 3-ready asset non-toxigenic C.difficile strain M3 (NTCD-M3) in preparation for the start of the Phase 3 study in 2022. The appointment of a manufacturer and the development of a more efficient and lower cost manufacturing process should not be underestimated for a biologic product that is new to the company.

Our financials and valuation have not changed as a result of these recent updates. We calculate the fair value of Destiny Pharma at £156.9m (262p per share).