Summary
- NextCure is a clinical-stage biopharmaceutical company developing new immune medicines to treat cancer among other immune-related diseases.
- NextCure reported an FCF of -$21 million and $4.9 million in 2017 and 2018, respectively.
- The FCF grew because of the deferred revenue received in 2018. It may not happen in the future. However, it is beneficial that NextCure reports revenue.
- Market participants should remember to review NextCure by the end of 2019 and 2020. If favorable data is released, the share price could spike up.
- Notice that cash in hand increased by 1,500% in 2018. Investors appear to appreciate the company's clinical research. They are giving the company cash at a fast rate.
With a collaboration agreement with Eli Lilly (NYSE:LLY) and well-known pharma players among shareholders, NextCure (NXTC) is a name that should be assessed carefully. The company expects to have an enterprise value of $127 million, which appears to be low as compared to other peers. Keep in mind that bluebird bio (BLUE) had an enterprise value of $400-600 million when it executed its IPO. Besides, the company expects to release new clinical data in Q4 2019. The company is at an early stage of development, which is not ideal. However, if the new clinical trials are favorable, the total valuation should increase.
