TxCell's novel CAR-modified regulatory T-cell (CAR Treg) platform is developing well. CAR Tregs offer a powerful and versatile new approach to autoimmune and immune system disorders. TxCell has four indications in preclinical development with the first ever CAR Treg trial, in transplant rejection, anticipated by TxCell to start by late 2018. This could provide powerful clinical proof-of-concept data by 2020. Ovasave for Crohn's disease remains as a clinical-stage project but is currently on hold. TxCell used a convertible loan facility in 2016 drawing €4.9m in cash. The indicative market cap is now €74m and focussed onto CAR Treg.
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TxCell is in a transition phase as the lead clinical project, Ovasave, is on hold while the potentially much higher-value CAR Treg projects are still in preclinical. The value has been refocused onto CAR projects. The Ovasave probability is reduced to 18%, formerly 29.7% giving a total NPV €90m, formerly €170m. The CAR Treg projects are now each given a nominal value. In total, this adds to €30m (formerly €22m). Potential CAR Treg deals are valued at €29m using as a benchmark Celgene's $300m acquisition of Delinia, a preclinical Treg company. After costs and tax, this gives an NPV of €74m, formerly $76m, equal to €3.75/share. Assuming full conversion of loans and warrants, the diluted value is €2.83/share.
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