DNB Markets – Isofol Medical: Still on track to deliver in Q4
Q1’s operating loss was larger than expected, mainly due to higher R&D spending. The impact from Covid-19 appears limited and management cautiously reiterated timelines. The company plans to strengthen its financial situation through a rights issue that would extend the runway to mid-2021. We believe the gene expression method adds value for Isofol Medical. We have cut our estimated fair value to SEK8–22 (SEK14–42) as a result of the planned increase in share count.Q1 operating loss was cSEK58m, above our estimate of cSEK41m. Increased R&D spending was the main reason for the deviation. We