Greater regulatory clarity given

Destiny have announced an update on the discussions with the FDA on the Phase 3 development plans for XF-73 Nasal in the prevention of post-surgical staphylococcal infections. As one of Destiny’s two Phase 3-ready products, the simplification of the Phase 3 study and the expected shorter duration will appeal to potential partners.

This announcement today should give its potential partners comfort when estimating returns because of clarity on the ease of conducting the study, its cost, the comparator arm composition, and the duration of the Phase 3 program needed for approval.

While we expect this announcement will improve the chances of a licensing transaction on XF-73 Nasal, we have maintained our expectations for the timing of that deal in FY 2023.

Our valuation of Destiny also remains unchanged at £209.6m or 288p per share.