Edison issues initiation on Pharnext (ALPHA)

Edison Investment Research Limited Edison Investment Research Limited: Edison issues initiation on Pharnext (ALPHA) 29-Sep-2020 / 13:39 GMT/BST London, UK, 29 September 2020 Edison issues initiation on Pharnext (ALPHA) Pharnext is a pharmaceutical company that develops new therapies leveraging pleiotropism, which is the idea that drug combinations can have effects outside of their individual canonical mechanisms. This provides access to novel methods of treating disease, which the company has used to develop its lead drug PXT3003 for Charcot-Marie-Tooth disease type 1A (CMT1A, entering Phase III in Q121). We initiate with a valuation of €239.5m or €12.48/share. We are initiating at €239.5m or €12.48 per share based on a risk adjusted NPV analysis. We only value PXT3003 and we assume it will have an above average probability of success of 60% based on the previous Phase III results. The company ended 2019 with €1.3m net cash and we forecast it will need additional capital in 2020 (an estimated €30m) with €95m in total before 2024.  Click here to view the full report. Subscribe to Edison's content to receive reports by email. All reports published by Edison are free-to-access and available on the website. About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Nathaniel Calloway, [phone] Wiktoria O'Hare, [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  https://www.linkedin.com/company/edison-group- Twitter   www.twitter.com/Edison_Inv_Res YouTube  www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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1137668 29-Sep-2020