Lifecare has today published its half-year results. It supports the investment case for an early capital injection and a significant share price trigger as early as next month.
Lifecare: Ticker: LIFE | Kurs: NOK 4,18 | Market Cap.: NOK 392 mio. | YTD kursudvikling: 144%
Lifecare is developing a revolutionary biosensor (Sencell), inserted in the wrist, that can measure the user’s glucose level. The biosensor is the size of a grain of rice, and therefore differs significantly from existing continuous glucose monitoring (CGM) meters. This is needed by a proportion of the more than 500 million patients with diabetes, but currently the most commonly used method is multiple daily blood sampling.
Possible proof of concept for Sencell in humans in September
Lifecare is in its first clinical study for Sencell (LFS-SEN-001 with threaded connection). 15 people are participating in the study including 10 healthy participants and 5 patients with type 1 diabetes. The study is expected to be completed in September, and if the study is successful, additional clinical studies will be initiated (LFS-SEN-002 & LFS-SEN-003 CE with wireless connection) with approximately 200 participants. It is paramount for the investment case that Lifecare manages to deliver positive data and the outcome of LFS-SEN-001 is therefore a significant price trigger for the share price.
Potential market launch as early as 2024
Clinical trials are fraught with risk, and it is not certain that Sencell will make it through the needle’s eye to market. However, if all goes well, the plan is to have Sencell on the market as early as 2024, so there is a short way from the first clinical trials to the product being on the market.
Overview of the Sencell development plan
Capital injection in the near future
At the end of the first 6 months of the year, Lifecare had cash on hand of approximately MNOK 11.3. At the same time, the company had a cash burn of approximately MNOK 7.3 in the first 6 months of the year, which is why the company needs to raise capital this year. This is likely to be based on any positive results for the LFS-SEN-001 study, which will be completed in September.
Share price development year to date for Lifecare relative to Kapital Partner Nordic Healthcare Index