Destiny reported its H1 2022 financial results and provided an update on its pipeline progress. We have changed our forecasts and valuation to reflect both a lower spend than we had anticipated, and the predicted $10m (now £8.7m) licensing transaction before YE 2022.
Cash at the end of H1 2022 was £8.4m, (£7.1m at H1 2021), reflecting the recent fundraising and the lower H1 R&D spend than we had estimated, and provides a runway until at least mid-2023. Our YE 2022 estimate of cash is £12.1m, which includes our expectations of a licensing transaction.
The results release summarises the developments on pipeline, discussions with the regulators on its two Phase 3-ready assets, and what appears to be an accelerating pace of partnering activities: particularly on NTCD-M3. The attractiveness of these assets to licensing partners should have been increased by Destiny’s efforts.
Our valuation of Destiny has risen: from £209.6m (288p / share) to £251.2m (345p / share).
