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Monday, June 3, 2019

Argus: Aptorum Group Ltd

Aptorum Group Ltd., a Hong Kong-based pharmaceutical company, develops and commercializes therapeutic and diagnostic technologies to treat unmet medical needs. The company also focuses on the development of surgical robotics and medical devices and operates outpatient clinics.
COMPANY HIGHLIGHTS
* APM: Addressing Orphan Indications and Unmet Needs
* In our view, Aptorum has compiled an impressive pipeline of early-stage assets that we
expect to drive significant value, both from internal development and external collaborations.
* In mid-2018, Aptorum launched a medical clinic in Hong Kong. Over time, we expect
revenue from this business to help mitigate the company’s R&D cash burn.
* In December 2018, Aptorum raised approximately $11 million from an initial public offering. The Company ended 2018 with $27.1 million in cash/restricted cash and marketable securities, which should be sufficient to advance at least one of its lead clinical programs to Phase I trials.
* Based on our sum-of-the-parts NPV valuation for the company’s lead programs and IP and technology assets, we arrive at a fair value estimate of $24 per share, well above current levels.
INVESTMENT THESIS
Aptorum Group Ltd., based in Hong Kong, is developing a range of therapeutic and diagnostic technologies to treat unmet medical needs. Its primary focus areas include infectious diseases, neurology, gastroenterology, and oncology. Aptorum is also developing product candidates in surgical robotics and medical devices. In mid-2018, the company launched an outpatient clinic in Hong Kong to treat chronic diseases resulting from modern sedentary lifestyles and an aging population.

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