Sequana Medical NV (SEQUA:EBR) expects to read out three studies evaluating its implantable alfapump system, designed to manage body fluid overload, by year-end 2022, reported H.C. Wainwright & Co. analyst Dr. Yi Chen in a September 9, 2022 research note.
H.C. Wainwright has a Buy rating and a €16 per share price target on Sequana, the current share price of which is about €5.70.
"We believe positive data from these studies could significantly increase the valuation of the company," Chen wrote.
Topline results are expected in Q4/22 of the POSEIDON study in patients with recurrent and refractory ascites due to liver cirrhosis, noted Chen. If data are positive, Sequana could file a premarket approval application with the U.S. Food and Drug Administration in H2/23 for the alfapump in this indication.
By year-end, results are also due out from the SAHARA DESERT study of the alfapump DSR (direct sodium removal) and DSR 2.0 in decompensated heart failure patients, wrote Chen.
Additionally, Sequana intends to extend SAHARA DESERT to evaluate alfapump DSR 2.0, and results from this short-duration study are due to read out by year-end 2022, too.
Chen summarized Sequana's financials for Q1/22 ending June 30, 2022, highlighting the company beat H.C. Wainwright's estimates.
Chen relayed that because DSR 2.0 was designed to have a better safety profile than DSR 1.0, Sequana plans to submit to the FDA an investigational new drug application for DSR 2.0 without the alfapump for a future study MOJAVE DESERT that could commence in H1/23. MOJAVE would evaluate, in about 30 diuretic-resistant chronic heart failure patients, short-term DSR with DSR 2.0 administered via a peritoneal catheter plus standard of care therapy versus standard of care therapy alone.
Also, in his report, Chen summarized Sequana's financials for Q1/22 ending June 30, 2022, highlighting the company beat H.C. Wainwright's estimates.
Specifically, Sequana's Q1/22 revenue was €0.46 million (€0.46M), up from €0.02M a year earlier and higher than H.C. Wainwright's forecast of €0.03M. Chen ascribed the beat to "resumed commercial activity in Europe as COVID impact declines."
Despite the boost in revenue, cash flow from operations was -€13.7M, and the company's net loss for the quarter was higher than H.C. Wainwright's projection, at €14.9M versus €12.6M.
As for cash, Sequana had €23.8M at quarter's end and expects to get €10M later this month from a loan facility; Chen relayed and noted the combined amounts should be sufficient to fund operations into Q3/23.
H.C. Wainwright has a Buy rating and a €16 per share price target on Sequana, the current share price of which is about €5.70.
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Disclosures For H.C.Wainwright & Co., Sequana Medical NV, September 9, 2022
H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.
I, Yi Chen, Ph.D. CFA and Raghuram Selvaraju, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of Sequana Medical NV (including, without limitation, any option, right, warrant, future, long or short position). As of August 31, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Sequana Medical NV. Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did not receive compensation from Sequana Medical NV for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
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