Nuevolution's (ST:NUEVOL) proprietary Chemetics DNA-encoded screening platform technology enables fast and accurate small molecule drug discovery. The technology has received powerful external validation, including two recent collaborations (Amgen (NASDAQ:AMGN) and Almirall (LON:0O9B)) that could generate significant value in the coming years. In addition, we expect Nuevolution to progress at least one internally generated asset into clinical development in the near future. We value the company's recent deals with Amgen and Almirall, plus its cash position alone, at SEK901m ($102m); our valuation does not include the technology, other pipeline assets and future deal opportunities.
Existing deals validate the technology
Chemetics, a DNA-encoded screening platform, is designed to rapidly select drugs for an array of tough-to-drug disease targets; the technology has been validated by multiple collaborative deals (17 since inception). Notably, deals with Amgen (multi-target: value up to $410m per target and a tiered royalty on sales) and Almirall (up to €442m plus tiered royalties for RORyt inverse agonist [dermatology and psoriatic arthritis indications] programme) are pivotal in defining near-term value.
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