11th Dec 2008 15:15
11 December 2008
HENDERSON MORLEY PLC
(AIM: HML)
("Henderson Morley" or "the Company")
HYBRIDAN INITATES COVERAGE ON HENDERSON MORLEY
The Board of Henderson Morley plc, the AIM quoted biotechnology company, is pleased to announce that Hybridan, the Company's house broker, has today initiated coverage on the Company. To view the research note please visit http://www.henderson-morley.com/news.php
Hybridan has given Henderson Morley a buy recommendation and a target price of 4.72p. This is based on the significant revenue potential of the Company's technology platforms.
Highlights
Hybridan believes that the Company's value is mainly tied to the intellectual property related to its three technologies, which provide a competitive advantage due to their unique mechanism of action and their impressive efficacy and safety profile.
The Company has three business divisions: Pharmaceuticals (based on ICVT), Animal Health (based on ICVT and its proprietary technology PREPS and L-particles), and Vaccines (also based on PREPS and L-particles).
Given the impressive revenue potential and low costs of development and production of its programmes, Hybridan believes that Henderson Morley has the potential to out license its candidates and sign deals with up front-, ongoing milestone- and royalty payments.
Using a probability-adjusted Sum of the Parts (SOTP) DCF model, Hybridan estimates Henderson Morley's fair value at 4.72 pence per share, with ICVT, Animal Health and Vaccines contributing 29%, 68% and 4%, respectively.
Hybridan believes a number of indications are not included in its valuation and Henderson Morley's progression in these would provide an obvious upside.
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ENQUIRIES:
HENDERSON MORLEY PLC 0121 442 4600
Andrew Knight, Chairman
BISHOPSGATE COMMUNICATIONS LTD 0207 562 3350
Maxine Barnes Nick Rome
BREWIN DOLPHIN INVESTMENT BANKING 0113 241 0126
Neil Baldwin
HYBRIDAN LLP 0203 159 5085
Claire Noyce/Stephen Austin
Further information on Henderson Morley plc can be accessed through the Company's website at www.henderson-morley.com
Related Shares:
HML.L