Frost & Sullivan Publishes Q-1 Update Coverage Report on DNA Biomedical Solutions Ltd.

TEL AVIV, Israel, July 3, 2018 /PRNewswire/ -- The TASE analysis project was launched in 2016 in order to raise investors' awareness to TASE listed technology and life-science companies and the markets in which these companies operate, thus creating appropriate pricing and increasing the exposure of investors from Israel and abroad. Its goal is to encourage investments in these companies by improving understanding of these industries and companies in the market.

In order to maintain professional, independent and unbiased analysis, the companies signed an agreement with the TASE to receive the analysis services for an obligatory period of two years. The companies cannot withdraw from the project during this period. The analysis is funded by the companies surveyed with funding from the Chief Scientist and the TASE.

Summary of Highlights

• On May 17, 2018 Entera filed an updated F-1 in preparation for a IPO on the NASDAQ.
• Recall that, on January 26, 2018, Entera Bio informed DNA that it had not completed the process of issuing and listing shares for trading as planned.
• In our opinion, the effect of the unactualized offering on Entera's development plans is immaterial.
• DNA publishes financial reports on a bi-annual basis. At December 31, 2017 Entera had an annual operating loss of approximately $11.3M, an increase of approx. $6M compared to 2016, mainly a result of NASDAQ registration, and other related IPO expenses.
• Entera Bio continues its efforts to raise capital and plans to submit a pre-IND to the FDA (505(b) (2) regulatory path) for its EB-613 asset.
• If Entera will receive approval from the FDA for progressing along this regulatory path, it will have a significantly positive effect on the drug's time to market. Currently, the company is expected to initiate Phase 2b/3 trials, with their EB-612 asset, PTH 1-34 for treating hypoparathyroidism in H2-2018.
• Financially, it should be noted that Entera recently completed a $13M financing round, and therefore, in our opinion, at present, the company has sufficient funding to complete the necessary preparations prior to initiating the aforementioned experiments.
• At the same time, we expect Entera to try and raise public and/or private capital in the coming months. If Entera raises sufficient capital, there should be no delay in its clinical development program.
• BeamMed retained its sales pace, with a key focus on penetrating the US market
• Revenues totaled NIS 12M in 2017, similar to 2016, with a high proportion of sales coming from Asia, and NIS 900K from the US.
• BeamMed's sales for 2017 reveal a change in geographic segmentation with sales growing in the USA compared to 2016.
• Sales and marketing expenses for 2017 increased by NIS 200,000 from 2016.
• We keep DNA's value at approximately $30.9 million (NIS 108.7M) corresponding to a target price of $0.23 (NIS 0.79) per share.

About the company - Israeli holdings firm DNA Biomedical Solutions Ltd. was founded in 2004 and went public on the Tel Aviv Stock Exchange in 2007. DNA has two key holdings, respective 35% and 40% stakes (both fully diluted) in biomedical companies - Entera Bio and BeamMed.

Entera Bio Ltd. (is a drug development company, founded in 2009 by DNA and Oramed, the latter from whom it has licensed a unique drug delivery platform for oral administration of pharmaceutically active large molecule proteins that are nowadays injected. Entera is conducting clinical trials for two candidate drugs treating three indications: hypoparathyroidism, osteoporosis, and non-union fractures.

BeamMed Ltd. and its global subsidiaries, are medical device companies that deliver an ultrasound based screening solution for determining a patient's risk of developing osteoporosis, with unique additional product features. Please click here (https://ww2.frost.com/research/equity-research/)

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Kristi Cekani
Corporate Communications - Frost & Sullivan, Europe
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