Stonegate Capital Partners Initiates Coverage on Medicus Pharma with $21.13 Valuation Target

Stonegate Capital Partners has initiated coverage on Medicus Pharma Ltd. (NASDAQ: MDCX), providing investors with a comprehensive analysis of the pharmaceutical company's strategic direction and financial positioning. The coverage initiation comes as Medicus advanced several key initiatives in the second quarter of 2025, building what Stonegate describes as a diversified portfolio of clinical and pre-clinical assets.

The company completed the acquisition of Antev Limited, expanding its therapeutic pipeline into dermatology and infectious diseases. This acquisition complements Medicus' lead microneedle patch technology for skin cancer treatment. 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 tied to cold-chain limitations, potentially revolutionizing vaccine distribution in developing regions. Further details on the company's strategic partnerships can be found at https://www.medicuspharma.com/partnerships.

Financially, Medicus secured an $8.0 million non-dilutive debenture financing, strengthening its balance sheet and extending cash runway while minimizing dilution for existing shareholders. These milestones highlight the company's strategy of combining organic development with opportunistic acquisitions to accelerate therapeutic asset advancement. The company's financial reports and SEC filings are available at https://www.sec.gov/edgar/search.

In the second quarter of 2025, MDCX reported a net loss of $6.2 million, compared to $3.6 million in the same period last year. This reflects increased expenses of $4.6 million and research and development investment of $1.4 million. For the six-month period, net loss widened to $11.3 million versus $5.3 million in the prior year, consistent with the company's expanded development and corporate activities. Cash and equivalents stood at $9.7 million at quarter-end, an increase from $4.2 million at year-end 2024, supported by equity raises, warrant exercises, and $4.5 million in proceeds from the debenture issuance.

Management expects that recent financings, combined with disciplined cost control, will provide sufficient capital to advance ongoing clinical and business development programs into 2026. The company's lead program, SkinJect, is a dissolvable microneedle patch designed for localized delivery of chemotherapeutic agents to treat non-melanoma skin cancers. The product is intended for outpatient use, potentially reducing treatment costs and improving compliance relative to surgical and systemic approaches. Clinical trial information can be accessed through https://clinicaltrials.gov.

Stonegate's valuation model returns a range of $14.91 to $29.35 with a midpoint of $21.13 based on a discount rate range of 17.50% to 22.50% and a current risk adjustment range of 50% to 40%. The firm notes that this model is highly levered to future years due to the long-term nature of MDCX's industry, leading to potential for dramatic re-ratings as new information becomes available. Additional research methodology details are available in the full report at https://www.stonegatecp.com/research.