Edison issues update on OCTP

Oxford Cannabinoid Tech.Holdings

09 February 2024

 

Edison issues update on Oxford Cannabinoid Technologies Holdings plc (OCTP)

Oxford Cannabinoid Technologies Holdings plc (LSE: OCTP), the biotech company developing prescription cannabinoid medicines, is pleased to share the following update on the Company from Edison.

Oxford Cannabinoid Technologies (OCT) has announced its H124 results (to end-October 2023), an eventful period for the company, marked by successful clinical progression of lead asset OCT461201, albeit with some funding challenges. Key highlights included the initiation and subsequent positive safety data from OCT's first Phase I clinical trial (Programme 1) and a foray into oncology (Programme 4). Tight funding conditions halted subsequent clinical progress, although the recently announced £1.3m R&D tax rebate, £1.2m fund-raise and planned clinical progression for second asset OCT130401 (Programme 2) offer signs of a potential revival in activity. We estimate that the fresh capital will support runway extension into Q4 CY24. Our valuation of the company stands at £25.3m or 2.6p per share, although we estimate the company needing additional funds towards the end of CY24 to further the company's clinical pipeline.

Valuation: maintained at £25.3m or 2.6p per share

We have rolled forward our model and adjusted our valuation for the latest cash figure, but have kept our underlying assumptions unchanged for now (100% valuation ascribed to OCT461201). We plan to incorporate OCT130401 once it enters the clinic and note the potential upside from this inclusion. Our valuation excludes the impact of the proposed fund-raise and remains unchanged at £25.3m or 2.6p/share, with benefits from rolling forward offset by the lower cash position.

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