Nyrada ( NYR )
My rationale for investing in Nyrada
From the prospectus , website and other information available in public
https://www.nyrada.com/site/content/
SOI 109 Mil
IPO raise 8.5 mil
EV 13 mil
Mcap 21.8 mil
Nyrada is a pre-clinical stage, drug development company specialising in the development of novel small molecule drugs pertaining to the underlying pathological processes involved in cardiovascular, neurodegenerative and chronic inflammatory diseases.
The Company has four current drug development programs:
Cardiovascular: A PCSK9 inhibitor for the treatment of high blood LDL-cholesterol levels in patients poorly responsive to or unable to take statin drugs.
Neuroprotection: A neuroprotectant drug to reduce the impact of long-term disability in patients with ischaemic stroke and traumatic brain injury
Inflammation/pain: A drug to treat pain associated with peripheral nerve damage.
Inflammation/autoimmunity:A drug to treat autoimmune diseases such as psoriasis.
PCSK9 program and Neuroprotection program are their immediate priorities.
The first program concerns a new form of cholesterol-lowering drug. The aim here is an oral, small molecule inhibitor of the plasma protein, PCSK9, an action known to assist standard-of-care statin drugs in achieving target cholesterol levels. The potential market is the approximately half of individuals with blood cholesterol levels considered to be putting them at risk of cardiovascular disease
(heart attack, stroke) who do not respond adequately to statin drug therapy or who cannot tolerate effective dosages of statins. Main objective is a single tablet containing the Company’s PCSK9-inhibitor along with a generic statin, offering a novel, convenient dual-purpose medication.
https://www.drugs.com/slideshow/pcsk9-inhibitors-a-new-option-in-cholesterol-treatment-1166
According to this article , PCSK 9 inhibitor drug is made by Amgen and Sanofi , both of them have this drug in inject-able form and prices ( After they cut down the prices) are still too high for government programs or insurance to cover them. Nyrada is planning to solve this problem by making oral drug for PCSK 9 inhibitor which will be a game changer for the company and patients with high cholesterol.
https://www.nytimes.com/2019/11/24/business/novartis-medicines-company-cholesterol.html
The most important Information regarding Nyrada is Novartis( 260 BILLIION mcap BIG pharma ) took over The medicines company ( MDCO) for 9.7 BILLION USD for their PCSK9 protein inhibitor drug. Nyrada's Drirector Christopher Cox was an Executive Vice President and Chief Corporate Development Officer of The medicines company ( MDCO) and was responsible for business development and strategy. This is a HUGE tick of confidence for Nyrada.
The next program is a neuroprotectant. The aim here is a drug capable of blocking a form of brain damage known as excitotoxicity that follows primary damage from stroke or other forms of traumatic brain injury including severe concussion. This secondary damage, currently untreatable, is thought to be a major contributor to long-term disability following brain injury. The impact that repeated concussion is having in contact sports has brought the need for a neuroprotectant drug to the community’s attention, but an even greater need is the roughly two-thirds of patients who survive a stroke but are left with a permanent disability requiring long-term assisted-living care. With some 800,000 people expected to suffer stroke this year in the U.S., reducing the extent of long-term disability and the cost of rehabilitation services and long-term nursing care is an urgent community priority. Nyrada was SELECTED to showcase their neuroprotection program at the Defense TechConnect Summit & Expo in Maryland, USA last year which is extremely hard to get into.
https://events.techconnect.org/DTCFall/about/
The annual Defense TechConnect (DTC) Summit is one of the most well attended defense conferences of the year. DTC attracts military officials, acquisition and procurement professionals, and corporate technology leaders to prospect, fund and/or collaborate on new technologies and solutions to meet the needs of today's DOD and the war fighter.
At Techknow conference in Sydney and Melbourne , CEO mentioned that Nyrada's story was very well received in Defense Summit in USA. Following is the part of their presentation at TechConnect.
https://www.nyrada.com/site/content/video/Nyrada-Traumatic-Brain-Injury-Animation.mp4
Corporate structure :
NOX converted their loans at 20c ( IPO price ) and some convertible notes were done at 16c . No shares were issued under 16c .Tight capital structure with only 109 mil Shares on issue. also 65 % shares are owned by top 20 and some prominent names/Long term investors on register.
44 mil out of 66 mil existing shares are escrowed for 12 to 24 months.
Management :
JAMES BONNAR,
CEO
20 years of experience in the global Life Sciences industry, including pre-clinical research, operations management, CMC (Chemistry, Manufacturing and Controls), Regulatory Affairs, and Quality Assurance.James was at Neuren( 300 mil Mcap ) for eleven years.
BENJAMIN (BENNY) EVISON
CHIEF SCIENTIFIC OFFICER
Benny gained his PhD in the design, development, and analysis of novel DNA-directed therapeutic agents for the treatment of cancer, particularly breast and prostate cancers and lymphomas.
CHRISTOPHER COX
NON-EXECUTIVE DIRECTOR
As mentioned before, He was an Executive Vice President and Chief Corporate Development Officer of The medicines company ( MDCO) and was responsible for business development and strategy. MDCO was taken over by Novartis for 9.7 BILLION DOLLARS for its PCSK9 inhibitor experimental drug.
RÜDIGER WESELOH
NON-EXECUTIVE DIRECTOR
13 years of doing Business Development for Merck KGaA, Darmstadt, Germany, Rüdiger has led more than 50 transactions for its pharmaceutical division, across the drug development value chain in the fields of Oncology, Rheumatology, Neurodegenerative diseases, and Fertility.
JOHN MOORE
NON-EXECUTIVE CHAIRMAN
John currently serves as Chairman of Trialogics a clinical trial informatics business. John was CEO of Acorn Energy from 2006 to 2015 during which time Comverge was taken public through Citigroup at a $304 million valuation and a subsequent $600 million secondary through Goldman Sachs.
IMO Its a billion dollar board for a 13 mil EV company... which bodes extremely well for their programs and any capital raising activities in the future.
Conclusion : Nyrada is an amazing US based Biotech company which is priced extremely cheap at 13 mil enterprise value .ASX Biotechs were rerated in a big way in last 18 to 24 months and created many multibaggers for investors. IMO Market will really like the potential of Nyrada and it will trade very well post listing. Also Nyrada got a very high caliber board of directors and senior management who got lot of experience of joining small size biotechs and help their transition in becoming very large size companies.Recent activities in the sector i.e. Novartis take over of MDCO for 9.7 Billion USD , demonstrate that it is going to be very interesting area for next few years.
Also It is not a one trick pony . Nyrada has 4 different programs and IMO there will be a lot of news flow related to their pre clinical studies.All 4 programs has massive markets as well.
IMO it should open around 35c to 40c and it can go to a dollar with some good news in medium to long term. Also looking at the price appreciation some of the recent biotech IPOs had i.e. NXS IXC OSX (Disclosure : I held all three in the IPO ) , I wouldn't be surprise if it will capture a lot traders interest.
Alto capital and CPS ( Lead managers ) were behind OSX and IXC IPOs and both did exceptionally well in terms of price appreciation.
GLTAH
ALL IMO
DYOR
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