Ultimovacs warns that an important cancer study has missed its target. The stock is sent directly to Oslo Borse.
The short version
- Ultimovacs announced that the company's key cancer study missed its target, sending the stock down more than 90 percent.
- The company's market value fell from NOK 4.1 billion to NOK 300 million in a few minutes. Major shareholder Bjørn Rune Gjelsten may see the value of shares fall by more than NOK 700 million.
- Despite the disappointment in the results, Ultimovacs is trying to maintain its cash reserves to secure finances until 2025.
- Other studies are underway and the results of another study are expected in the third quarter of this year.
The summary was prepared by the AI tool ChatGPT and quality assured by E24 journalists
Updating topic…
– This is very bad news for the company. That was their main study and now we get the main result, which is that you don't see any effect of the vaccine on the endpoint that you're measuring, which is progression-free survival, analyst Geir Heller Holum at DNB Markets tells E24.
– He says that this is exciting and has a negative sign for the company.
Ultimovacs reported Thursday that the company's cancer study using its UV1 vaccine candidate fell short of the goal of extending survival for the patient group.
The company is developing a cancer vaccine based on research it is conducting at the Radium Hospital in Oslo.
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Stock collapse
Before the stock market opened, Holum predicted the stock would fall as much as 80 percent due to this news. On Thursday morning, trading in the stock was automatically suspended and after the opening of trading, the price fell by 93 percent.
– It's based on the fact that this was their main study. When they do not get positive results, confidence in the vaccine's effect will be greatly weakened. In addition, the company is running out of money and will have to raise money during the year. It's going to be tough for the company, Hollom says.
Ultimovacs' market capitalization shrunk from NOK 4.1 billion to NOK 300 million within a few minutes.
Leading investors Bjørn Rune Gjelsten and Stein Erik Hagen top the list of Ultimovacs shareholders. They respectively own 18.9 and 7.9 percent of the biotechnology company through their companies Gjelsten Holding as and Canica as.
Aksjeraset cuts more than NOK 700 million off Gjelsten values, while Hagen suffers a paper loss of about NOK 300 million.
Founder and health investor Radforsk, billionaire Helene Sundt, heiress to shipowner Peter Sundt, and the Sundt family are also major owners in Ultimovacs.
Folketrygdfondet owns just under 1 percent of the company.
Real estate billionaire Torstein Tvenge owns 0.6 percent.
Disappointed with the results
Ultimovacs wrote in the letter that the company will take measures to preserve its cash holdings, so that it has the necessary financial resources to reach 2025.
Medical Director Jens Buerheim says in the letter that Ultimovacs has set very high standards for its vaccine candidate by comparing it to what is considered the most effective treatment for today's patient population.
He says the company is nonetheless disappointed that the vaccine candidate did not provide “more clinical benefit” to patients.
Ultimovacs tests its products through numerous studies. This was the second result out of five results in the so-called second phase programme. The other three studies are ongoing and results are expected in the third quarter of this year.
– They have more studies and this is a positive thing in isolation. But confidence in the vaccine is now severely weakened, Holum says.
– The fact that you do not see an effect in this indicator means that you have less confidence that it will work in other indicators. He says it's little consolation to have a few shots on target.
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