An investment in Herantis, we argue, is a bet on the company’s strong scientific foundation which – if successful – could revolutionize the field of Parkinson’s disease and yield blockbuster peak sales. We argue that the company has made significant progress in the last year – most notably its pivot towards HER-096.

Herantis has made further pipeline progress, especially with HER-096 and its upcoming phase I trial, which recently got approval to start. We argue that Herantis approach to Parkinson’s has become increasingly compelling and that the preclinical data with HER-096 indicates that it has solved the key challenges we saw in our initiation report.

We largely reiterate our view of Herantis from earlier this year (see this update), where we slightly raised our base case. Following the report, we did some model housekeeping (adjust FX; roll over the model). This leads to an updated base case of EUR2.4 (2.2) per share. We note that the Herantis share has seen a significant rally recently (+60YTD), likely a relief rally following the application process (CTA) to start the phase I trial and flow-driven due to the delisting in Sweden and low liquidity.