Are Fusion on a pathway to finding the Holy Grail ?

Fusion rapidly advancing their R&D MAL validation programme with successful SARS-CoV-2 antigens created for commercial use, moving onto the next step, finding a neutralising antibody for the disease.

I meant to cover the news from Fusion Antibodies (FAB) last week when it was announced but the news landed whilst I was under the knife having my 5th, yes 5th eye operation ! Long story but I seem to be on the mend however my surgeon would probably be slapping my wrist if she knew I was at the PC right now !

You can read more in-depth info on Fusion in my research notes Part 1 and Part 2 and it’s well worth a read as even though the recent news was COVID related, that element is just one part of what the company are doing but obviously topical !

The share price saw a whopping 180% intraday rise on the news that the company have produced SARS-CoV-2 spike proteins (antigens) that 100% correlate with patient blood samples for the disease and at the 250p intra-day high the share price was 150% up from the share price at the time I produced my research note back in May – not a bad return thus far!

The following is an extract from the RNS…

The Company’s extensive antigen manufacturing capabilities means that Fusion has been able to express high-purity antigens on a commercially viable scale for the development of diagnostic tests. 

The Company is now offering these antigens on a commercial basis to companies and researchers worldwide. Unlike the PCR tests that are currently being used to identify the presence of COVID-19, Fusion’s antigens are able to confirm recent past infections and determine levels of neutralising antibodies to COVID-19. This could be invaluable for disease modelling and public health policy, as it will assist in the determination of true transmission rates and case fatality rates.

But the next phase of what they are doing gets even better…

The Company has commenced use of these antigens to interrogate the Library for SARS-CoV-2 neutralising antibodies with a view to providing these as potential prophylactic and therapeutic candidates

This last bit is of major interest, as I covered in my research note, the company are running an R&D programme to validate the Mammalian Antibody Library, the ‘MAL’ which has been in development for a few years.

The opportunity…

With the first few steps complete and successful if they can now use the MAL to identify neutralising antibodies for the high quality 100% correlated COVID spike proteins they have produced, the potential for a treatment for COVID that could stop the virus in its tracks would be HUGE

Whilst the wider market seems to focus just on testing Pharma stocks, Fusion are at the heart of testing, diagnostics and potentially a treatment. Clearly the upside would be huge, caveated by the usual inherent complexities of drug development of course.

As I have explained before though, Fusion aren’t just about COVID-19, validation of the MAL would open opportunities in oncology and other healthcare applications and imagine if a large Pharma company wanted to snap up this technology for themselves to give them a firm competitive edge in getting to market faster.

One can only wonder what such technology would be worth either outright or licensed to Pharma companies – either way I believe successful MAL validation opens the door for a potential $billion+ valuation.

Given the company have a core business and this year returned 79% YOY revenue growth I see an excellent risk vs reward here with potentially transformative upside on offer.

Disclaimer

Research Notes and Blogs prepared by @TheMoneySponge. These should not be taken as investment advice and accuracy in statements cannot be guaranteed. These are to assist other researchers who may wish to research further and serve as a starting point. I may hold a position in the company 

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