Mendus: We are discontinuing coverage

We are discontinuing our coverage of Mendus as the company has terminated the equity research agreement. Consequently, we will no longer be giving a target price (was SEK 14) or a recommendation (was Accumulate) for the stock. In the mid-term, the equity story culminates in Mendus transitioning into a Phase III company in acute myeloid leukemia (AML) indications. Achieving this requires further funding, likely via a partnering deal with a larger pharma player. We see this transition as a major value inflection point with the main risks related to clinical trial results and success in securing funding without major dilution in the number of shares outstanding. In the long-term, if supported by favorable clinical data, the lead product vididencel could be commercialized for the first indication in AML by the end of the decade. Further launches in other indications could follow in the next few years.

Mendus is focusing on AML with additional potential in ovarian cancer and soft-tissue sarcomas

Mendus’ lead product, vididencel, is being developed as a maintenance therapy for AML and ovarian cancer.  Results from previous trials have shown a favorable safety profile and indicated possible efficacy. A recently initiated Phase II clinical trial CADENCE is evaluating vididencel in combination with standard-of-care in AML maintenance. In parallel, the company is building pivotal-stage readiness by H2’25. This includes planning for a registrational trial in AML and building manufacturing capabilities with partner NorthX Biologics. In addition to AML, other programs include vididencel for ovarian cancer and ilixadencel for soft tissue sarcomas. Mendus has a cash runway until Q4’25, which should enable the company to conduct a data readout of the CADENCE trial and to acquire readiness to undertake a global registrational trial. We expect the launch of vididencel for the first indication (AML) in 2029, with further launches to follow in 2030 and 2031. Profitability could be achieved by 2032.

In the mid-term, the equity story culminates in Mendus transitioning into a Phase III company

We see the data readout of the CADENCE trial in H1’25 and the readiness to undertake a global registrational trial by H2’25 as the main short-term value drivers for the company. These targets should be achievable with the current cash position. In the mid-term, we see Mendus’ ability to transition into a Phase III company as a major value driver. Undertaking the Phase III trial in AML will be costly and we expect Mendus to need an agreement with a larger pharma player to fund for the trial. Funding the Phase III trial by a share issue carries the risk of major dilution in the number of shares outstanding. Mendus has not commented on the possible schedule of the Phase III trial, but we estimate that patient recruitment could begin at the earliest in late 2026, assuming funding is secured well in advance.

We are discontinuing coverage of the stock

Our research coverage of Mendus has been based on an equity research service agreement between Inderes and Mendus. We will discontinue our coverage for the investor community and Mendus owners as the company has terminated the agreement. We recommend that investors follow Mendus’ reporting and news feed. Equity research will continue to be available via Edison and Redeye. All of our previously published research on Mendus continues to be available in our service here.