Anteris Technologies Ltd (AVR.AX) | Analyst: Chris Kallos Update Note

Price: $8.05; Valuation: $23; Market Cap: A$55m

Please find attached full note.

CATALYST

Anteris has released its 2Q2021 results, announcing revenue of $1.6m (largely LeMaitre Vascular), R&D burn of $1.6m and $3.1m cash (excluding this month’s $9m capital raise). On the clinical side, the proof of concept (POC) animal study on the viability of ADAPT® treated conduits in the carotid artery showed no calcification. Anteris had its first successful in vivo demonstration of the ComASUR™ Transfemoral Delivery System.

IMPACT

Investment thesis remains intact with progress across all aspects of the TAVR device development bolstered by positive clinical updates. Details of corporate activity during the quarter included:

  • second tranche of the Mercer Street Global Opportunity Fund funding facility raised $1.0m before costs
  • new convertible note issue to Mercer raised $2.5m
  • share issue to Mercer raised $550,000
  • new shares placed to mainly top 10 institutional investors raised $2.3m; investors also received unlisted 2-year options

Details of capital raise after the quarter included: Capital raise of $9m in a placement to sophisticated investors at $8.00/share. Investors will also receive either: (1) 3 unlisted options for every 5 new shares, with a 4-year expiry and exercise price of $10.00, if approved by shareholders; or (2) cash of $1.25 per option. The funds raised will be used largely to develop DurAVR™.

INVESTMENT VIEW

Our valuation of AVR remains unchanged A$23 per share (undiluted), pending the release of 1H21 financials. This uses a risk-adjusted net present value (rNPV) method to discount future cash flows through to FY2030 and incorporates a probability of success adjustment of 32% and, DurAVR™ valve/ComASUR™ delivery kit pricing of US$33,000.

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