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Sunday share tips: Destiny Pharma, Invinity Energy Systems

Sun 29 October 2023 21:01 | A A A

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(Sharecast News) - The Financial Mail on Sunday's Midas column spied long-term potential in Destiny Pharma's shares.

Focusing on MRSA, other post-operative infections and those chronically ill after taking antibiotics, the company's products had the potential to generate annual sales of over £2bn.

While still in development, some were being tested in laboratories and two had already achieved "extremely promising" results, the tipster said.

Indeed, millions of patients recovering from illnesses and surgery might be helped, with lives even saved and healthcare costs reduced.

Midas also highlighted the track record of Destiny's chief executive officer, Chris Tovey, who played a central role in GW Pharma's transformation from a biotech outfit into a commercial business.

In the process, GW floated on the US Nasdaq at $8.90 a share in 2013 and was bought for $220 eight years later.

Destiny chairman Sir Nigel Rudd was also a safe pair of hands and was "well-known for making money for shareholders".

"Destiny Pharma's drugs are designed to curb the use of antibiotics, help the sick to recover faster and cut healthcare costs.

"The shares have had their ups and downs - and biotech firms are never without risk - but Rudd and Tovey's arrival on the board should inspire confidence. At 50p, Destiny is a long-term buy."

The Sunday Times's Lucy Tobin tipped shares of Invinity Energy Systems to readers, in anticipation of the roll-out yof Mistral, the company's new vanadium flow batteries.

Although they will likely cost twice as much as their lithium equivalents, they will probably last more than four times longer.

Developed together with Siemes, the could also tolerate a large spectrum of temperatures, charge and discharge quite quickly and did not ignite.

Tobin nevertheless pointed out two potential red flags, the fact that Invinity was still turning a loss and its capital position.

Invinity itself had already said as much, telling shareholders it would require more capital in 2024, having already raised £16m during the present year.

Analysts meanwhile expected the company to end 2024 with £20m of debt on its books-

However, the company was expected to turn cashflow positive in 2025.

"It's risky, but the firm's tech is already on sale and impressing blue-chip buyers. Buy."

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