Stonegate Capital Partners Initiates Coverage on Medicus Pharma Ltd., Highlights Strategic Pipeline Expansion

Stonegate Capital Partners has initiated coverage on Medicus Pharma Ltd. (NASDAQ: MDCX), highlighting the company's strategic progress in building a diversified portfolio of clinical and pre-clinical assets. During the second quarter of 2025, Medicus advanced several key initiatives that demonstrate its multi-faceted approach to therapeutic development.

The company completed the acquisition of Antev Limited, which expands Medicus' therapeutic pipeline into dermatology and infectious diseases. This acquisition complements the company's lead microneedle patch technology for skin cancer treatment, creating a more robust portfolio. Additionally, Medicus entered into a Memorandum of Understanding with Helix Nanotechnologies to co-develop thermostable vaccines for infectious diseases. This collaboration addresses critical global healthcare challenges related to cold-chain limitations, potentially revolutionizing vaccine distribution in remote or resource-limited settings.

Financially, Medicus strengthened its position by securing an $8.0 million non-dilutive debenture financing. This strategic move enhances the company's balance sheet while extending its cash runway and minimizing dilution for existing shareholders. The financing approach reflects management's commitment to prudent capital allocation as the company advances its therapeutic assets. Further details on the company's financial strategy can be found in their corporate documentation available at https://www.medicuspharma.com/investors.

Medicus reported a net loss of $6.2 million for the second quarter of 2025, compared to $3.6 million in the same period last year. This increased loss reflects expanded development activities and research investments totaling $4.6 million in additional expenses and $1.4 million in R&D spending. For the six-month period, the net loss widened to $11.3 million versus $5.3 million in the prior year, consistent with the company's accelerated development timeline. Despite these losses, cash and equivalents stood at $9.7 million at quarter-end, representing a significant increase from $4.2 million at year-end 2024.

The company's lead program, SkinJect, represents a innovative approach to skin cancer treatment. This dissolvable microneedle patch is designed for localized delivery of chemotherapeutic agents to treat non-melanoma skin cancers, including basal cell carcinoma. The product's outpatient use potential could significantly reduce treatment costs and improve patient compliance compared to traditional surgical and systemic approaches. More information about this technology platform is available at https://www.medicuspharma.com/pipeline.

Stonegate Capital Partners employed a probability-adjusted Discounted Cash Flow model to value MDCX, resulting in a valuation range of $14.91 to $29.35 with a midpoint of $21.13. The valuation model utilizes a discount rate range of 17.50% to 22.50% and a current risk adjustment range of 50% to 40%. This valuation approach acknowledges the long-term nature of pharmaceutical development and the potential for significant re-ratings as clinical milestones are achieved. Additional valuation methodology details are accessible through Stonegate's research portal at https://www.stonegatecp.com/research.

The implications of Medicus' strategic direction extend beyond immediate financial metrics. The company's focus on thermostable vaccine technology addresses one of the most significant challenges in global health infrastructure - the cold-chain requirement that limits vaccine accessibility in developing regions. Similarly, the SkinJect technology could transform dermatological oncology treatment by making effective therapies more accessible and less invasive. These innovations position Medicus at the intersection of medical advancement and healthcare accessibility, potentially creating substantial value for both patients and shareholders as programs advance through clinical development.