Oncology Venture (OV) announced on 8 June 2020 that it acquired the remaining 37% minority stake in its dovitinib asset for SEK36m in stock (25.9m shares issued at SEK1.388 per share). The deal also includes a 10% royalty payment over the next 24 months following the signing (although we do not expect significant revenue from the asset during this period). The product’s new drug application is currently planned to be submitted to the FDA in H220.

We have increased our valuation to SEK1,178.9m or SEK7.36 per basic share, from SEK892.8m or SEK6.83. This is driven by adjusting dovitinib ownership to 100%. Additionally, we have rolled forward our NPVs and these changes are offset by lower net cash (SEK5.4m from SEK19.3m). We have delayed the clinical programme for 2X-121 on account of slow enrolment to date and the future impact of COVID-19. We forecast that Oncology Venture will fully utilise its remaining financing facilities in 2020 (SEK137m) to progress its clinical and regulatory programmes.

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