Validation well worth waiting for

After Destiny’s December trading update that led with draft terms and exclusivity being agreed for the licensing of its lead product, NTCD-M3, Destiny has confirmed the signing of the transaction with US gastroenterology (GI) specialist Sebela Pharmaceuticals. 

In return for the exclusive North American rights, Destiny will receive up to $570m including upfront, development and sales-based milestone payments, plus royalties. This transaction not only provides Destiny significant validation for their lead product, but also helps its potential ex-US partners who should now see M3 as an asset that has been significantly de-risked.

Our fair value for Destiny for now remains unchanged at £251.2m or 345p per share. We shall revise our M3 model, Destiny’s financials including cash and share count after the result of the general meeting to approve the fundraising on 16 March 2023 and clarity on the Open Offer take-up.