Overview: Invitrocue Ltd (“Invitrocue”, “the Company”) is a biotechnology company focused on oncology and bio-analytics. The Company’s primary product is Onco-PDO (“Onco-PDO”), a personalised cell-based screening technology for the purpose of identifying the right drug for the right patient. Patient-derived cancer cells are cultured in laboratories, gathering patient-specific cancer information which is then tested against an approved list of drug and treatment options. Invitrocue operates in Singapore, China, Hong Kong, UK, Australia, and Germany. Since Wise-owl initiated coverage in May 2018, Invitrocue has expanded its global footprint, added expertise to the Board, and accelerated marketing initiatives for Onco-PDO.
Catalysts: Invitrocue is in the process of building a global network of clinical partnerships and joint laboratories to fast-track the commercialisation of Onco-PDO, which has received its first patients in 2018. To date, Invitrocue has attracted global industry leaders and funded the business via a mix of grants and placements, with the most recent raising executed at a price premium. As the Company’s channel partner network matures, volume growth in patient numbers will be the primary catalyst. The company’s ability to onboard channel partners and achieve market penetration has the potential to deliver the first meaningful revenues in 2019.
Hurdles: As Invitrocue gears up for growth, the Company remains reliant on external capital to fund its market development program and there is no guarantee it can continue to procure funding at favourable terms for shareholders. The Company has a limited track record and the commercial appeal of its Onco-PDO technology remains to be validated. While early signs are encouraging, a wider market acceptance has yet to be established for Onco-PDO.
Investment View: Invitrocue offers speculative exposure to demand for cancer analytics technologies. The Company is strategically expanding its channel network with a view to rolling out Onco-PDO to international markets and a progressive rise in patient numbers is the primary catalyst over the coming quarters. Principal hurdles include funding demand, the Company’s limited track record, and general market acceptance risks. Invitrocue has managed to raise funds at a premium to the market price, demonstrating investor confidence in the Company’s value proposition. These funds have been used to build a large-scale sales and marketing infrastructure, which has the potential to deliver the first meaningful revenues in 2019. We resume coverage of Invitrocue to monitor management’s ability to execute its growth strategy.
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