Irlab: Don’t count mesdopetam out - Edison

IRLAB Therapeutics has reported its full-year results for 2022, providing both a financial and an operational update of its active clinical and preclinical assets. The Phase IIb study of lead clinical asset, mesdopetam, in Parkinson’s disease levodopa-induced dyskinesias (PD-LIDs) has now concluded, with IRLAB’s licensing partner, Ipsen, assuming control of the drug’s development. IRLAB’s near-term catalysts for the company include the initiation of Phase I studies for IRL757 and IRL942 (Phase I ready in H223 and H124, respectively), and top-line readouts for pirepemat in the Phase IIb study in PD-Falls in H124. At end-Q422, IRLAB had net cash of SEK252.8m, which, at our estimated cash burn rates, we expect will fund operations into H224. Considering the recent results of the mesdopetam Phase IIb study, which failed to meet the primary endpoint, we have adjusted our valuation of IRLAB to SEK4.84bn or SEK93.3/share (previously SEK6.72bn or SEK129.8/share), although the valuation per share would reduce to SEK35.9 assuming our projected financing needs (SEK750m) are met via a share issuance at the current market price.