OREANDA-NEWS. FY16 results were strong, with 28% like-for-like total revenue growth reported (74% growth including the 2.7m pounds contribution from its acquisitions late 2015). It has been a pivotal year for Abzena as it has expanded its business to provide a broad range of services from antibody discovery through to GMP manufacturing for Phase I/II trials. Alongside this, its clinical Abzena inside pipeline continues to grow, with 11 products now in the clinic and progressing toward commercialisation, most notably GS-5745 in gastric cancer. We have increased our valuation to ?133m (from 130m pounds) but expect upside to this as the portfolio progresses and further licensing deals are announced.

Our fair value has increased to 133m pounds (from 130m pounds) or 98p per share (vs 96p). We have included 56m pounds for the services business, based on our new forecasts (including a 12-month contribution from the acquisitions) and risk-adjusted royalties from licensed products of 64m pounds, (adding an 11th clinical Abzena inside product and including the Halozyme ADC deal). Abzena is well poised to grow its integrated service offering and also offer a potential valuation uplift as its Abzena inside products move through the clinic and to the market. 


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