Gearing up for growth (ASX: IVQ)

Commercialising Novel Cancer Technology

Overview: Invitrocue Ltd (“Invitrocue”, “the Company”) is a health care company focused on bio-analytics. The Company’s primary product is its proprietary Onco-PDO technology (“Onco-PDO”), a personalised cell-based scaffolding technology gathering patient-specific cancer information to guide oncologists in drug and therapy selection. The technology enables patient-derived cancer cells to be cultured in laboratories and tested against approved drugs. Additionally, Invitrocue is also focused on liver cell services to pharmaceutical companies. Invitrocue currently operates in Singapore, China, UK, Australia, Germany, and Japan.

Catalysts: Invitrocue has treated its first Onco-PDO customers and is now preparing for the commercial roll-out across the Asia Pacific and Europe and a significant increase in patient numbers. Expansion initiatives are supported by the Company’s patent portfolio and an immediate go-to-market model with low regulatory hurdles. Partnership discussions and validation trials are concurrently underway and designed to demonstrate the scientific and clinical merits of Invitrocue’s services. Strategic partnerships and the setup of joint service laboratories are catalysts to accelerate the Company’s growth trajectory.

Hurdles: Invitrocue is reliant on external capital and there is no guarantee it can procure the funding required to sustain its market development programs. The Company has a limited track record and the commercial appeal of its OncoPDO technology remains to be validated. While early signs are encouraging, market acceptance has yet to be established as there is no guarantee that health care institutions or patients will adopt Invitrocue’s technology.

Investment View: Invitrocue offers speculative exposure to demand for cancer analytics technology. The Company has treated its first patient and identified near-term opportunities which have the potential to further strengthen market acceptance of Onco-PDO ahead of the commercial rollout across the Asia Pacific and Europe. Funding demand, a limited track record, and market risks are principal hurdles. The number of new cancer cases is projected to rise significantly over the coming decade and the industry has historically achieved poor treatment outcomes. Invitrocue seeks to commercialise its Onco-PDO technology and the recently secured grant funding from Northern Ireland is a validation of its IP, while successful completion of clinical trials has the potential to accelerate channel partnership negotiations. As Invitrocue achieves key milestones, strategic interest may build up and we ‘initiate coverage’ to monitor its international expansion strategy.

THE BULLS AND THE BEARS

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THE BULLS SAY

  • Invitrocue has achieved first revenues from Onco-PDO and is now preparing for the commercial rollout across the Asia Pacific and Europe
  • A number of validation trials are currently underway and designed to demonstrate the scientific and clinical merits of Invitrocue’s services Further validation of Invitrocue’s technology could support commercial initiatives
  • An immediate go-to-market model with low regulatory hurdles supported by strategic channel partners allows for rapid geographic expansion
  • Invitrocue has patents granted in all of its key markets including in the US, UK, Australia, Germany, Singapore, Japan, and China.
  • Invitrocue offers speculative exposure to demand cancer analytics
    technology
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THE BEARS SAY

  • Invitrocue is reliant on external capital and there is no guarantee it can procure the funding or partnership required to sustain its clinical development programs
  • There is no guarantee that validation trials will result in commercial partnerships
  • The Company has a limited track record and the commercial appeal of its Onco-PDO technology has yet to be proven
  • The company has recently treated its first commercial customer, but a broader market acceptance has not been demonstrated yet. There is no guarantee that health care institutions or patients will adopt Invitrocue’s technology
  • An investment in Invitrocue should be considered speculative in nature