| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 0.20 | -100 |
| Intrinsic value (DCF) | 4.24 | -90 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
BerGenBio ASA is a clinical-stage biopharmaceutical company headquartered in Bergen, Norway, specializing in the development of innovative therapies for immune-evasive, drug-resistant, and metastatic cancers, as well as respiratory diseases. The company's lead candidate, Bemcentinib, is a first-in-class AXL kinase inhibitor currently in Phase II clinical trials for non-small cell lung cancer (NSCLC), acute myeloid leukemia (AML), myelodysplastic syndrome (MDS), and COVID-19. Additionally, BerGenBio is advancing tilvestamab, an anti-AXL antibody, in Phase Ib trials. The company has a strategic collaboration with Merck & Co. to explore combination therapies, enhancing its clinical pipeline. Operating in the highly competitive oncology and respiratory disease sectors, BerGenBio focuses on targeting AXL, a key driver of cancer progression and immune evasion. With a market cap of approximately NOK 78 million, the company remains a high-risk, high-reward investment in the biotech space, leveraging its niche expertise in AXL inhibition to address unmet medical needs.
BerGenBio ASA presents a speculative investment opportunity with significant upside potential due to its focus on AXL inhibition in oncology and respiratory diseases. The company's lead candidate, Bemcentinib, is in mid-stage trials, with promising early data in NSCLC and AML. However, the company remains unprofitable, reporting a net loss of NOK -139.3 million in its latest fiscal year, and relies heavily on clinical trial success and potential partnerships for future revenue. The collaboration with Merck & Co. provides validation but does not eliminate the high risk associated with clinical-stage biotech investments. Investors should weigh the potential for breakthrough therapies against the inherent volatility of the sector, regulatory hurdles, and cash burn (NOK -153.2 million in operating cash flow). The stock's beta of 1.176 indicates higher volatility than the broader market, making it suitable only for risk-tolerant investors.
BerGenBio ASA operates in the competitive oncology and respiratory disease markets, where large pharmaceutical companies and specialized biotech firms dominate. Its competitive edge lies in its focus on AXL kinase inhibition, a novel approach targeting immune evasion and drug resistance in cancers. Bemcentinib's first-in-class status provides differentiation, but the company faces intense competition from established players with deeper pipelines and financial resources. Competitors such as Roche (with its PD-L1 inhibitors) and AstraZeneca (with Tagrisso in NSCLC) have significant market share, while smaller biotechs like Turning Point Therapeutics (now part of Bristol Myers Squibb) also target niche oncology pathways. BerGenBio's collaboration with Merck enhances credibility but does not guarantee commercial success. The company's small size limits its ability to independently bring drugs to market, necessitating further partnerships or acquisitions. Its cash position (NOK 140.2 million) provides runway but may require additional financing. Success hinges on clinical data readouts, regulatory approvals, and the ability to demonstrate superior efficacy or safety compared to existing therapies.