2023 年 11 月 28 日

Zacks Small-Cap Research による当社レポートの発表に関するお知らせ
現地時間の 11 月 27 日、米国シカゴに本拠を置く投資家向け情報サービス企業 Zacks SmallCap Research の David Bautz 氏による、当社レポートが発表されましたので、参考情報としてお知らせいたします。
なお、当該レポートは、恐れ入りますが、権利の都合上、英文のままでのご案内となります
ので、ご了承ください。
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MediciNova,Inc.（メディシノバ・インク）東京事務所 IR 担当
E-mail infojapan@medicinova.com
URL

https://medicinova.jp/

November 27, 2023
David Bautz, PhD
312-265-9471
dbautz@zacks.com

Zacks Small-Cap Research
Sponsored – Impartial - Comprehensive

Sponsored – Impartial - Comprehensive

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10 S. Riverside Plaza, Chicago, IL 60606

MediciNova, Inc.

(MNOV-NASDAQ)MNOV: Encouraging Phase 2 Glioblastoma
Results Presented at SNO…

OUTLOOK

Based on our probability adjusted DCF model that takes into
account potential future revenues from MN-166 in ALS,
progressive MS, addiction, and as an MCM; and MN-001 in
NAFLD, MNOV is valued at $27.00/share. This model ishighly dependent upon continued clinical success of thecompany’s assets and will be adjusted accordingly basedupon future clinical results.

Current Price (11/27/23)
Valuation$1.85$27.00On November 19, 2023, MediciNova, Inc. (MNOV)
announced new data and results of a Phase 2 clinical
trial of MN-166 (ibudilast) in glioblastoma (GBM) were
presented at the 28th Annual Meeting of the Society for
Neuro-Oncology (SNO). The presentation included datafrom preclinical studies that evaluated the combinationof MN-166 and anti-PD1 or anti-PD-L1 therapy in GBM
mouse models. Results from the Phase 2 study showed
progression-free survival at six months was 44% fornew GBM patients and 31% for recurrent GBM
patients. The preclinical results showed a statisticallysignificant increase in survival for the mice treated withMN-166 and either an anti-PD1 or anti-PD-L1 antibody.
These encouraging results may lead to development ofMN-166 as a combination therapy for GBM.

SUMMARY DATA
52-Week High
52-Week Low
One-Year Return (%)
Beta
Average Daily Volume (sh)

$2.66
$1.74
-19.21
0.91
252,576

Shares Outstanding (mil)Market Capitalization ($mil)
Short Interest Ratio (days)
Institutional Ownership (%)
Insider Ownership (%)

49$91
N/A
1117

Annual Cash Dividend
Dividend Yield (%)
5-Yr. Historical Growth Rates
Sales (%)
Earnings Per Share (%)
Dividend (%)

$0.00
0.00

Risk Level
Type of Stock
Industry

Average
Small-Value
Med-Biomed/GeneZACKS ESTIMATES
Revenue(In millions of $)Q1(Mar)Q2(Jun)Q3(Sep)Q4(Dec)Year(Dec)

2022

0A

0A

0A

0A

0A

2023

0A

0A

1A

0E

1E

2024

0E

2025

0E

Earnings per Share
N/A
N/A
N/A

P/E using TTM EPS

N/A

P/E using 2023 Estimate
P/E using 2024 Estimate

N/A
N/A2022202320242025© Copyright 2023, Zacks Investment Research. All Rights Reserved.

Q1(Mar)Q2(Jun)Q3(Sep)Q4(Dec)Year(Dec)-$0.07 A-$0.08 A-$0.07 A-$0.06 A-$0.29 A-$0.06 A-$0.06 A-$0.01 A-$0.08 E-$0.21 E-$0.32 E-$0.35 E

WHAT’S NEW
Business Update
New Data for MN-166 in GBM Presented at SNO
On November 19, 2023, MediciNova, Inc. (MNOV) announced new data and results of a Phase 2 clinical trialof MN-166 (ibudilast) in glioblastoma (GBM) were presented at the 28th Annual Meeting of the Society for
Neuro-Oncology (SNO) (Lauko et al., 2023).
The Phase 2 clinical trial enrolled 62 GBM patients (36 newly diagnosed and 26 recurrent) who were treatedwith a combination of MN-166 and temozolomide (TMZ) until disease progression or withdrawal from the study
for other reasons. The rationale for combining MN-166 with TMZ comes from previous studies in which it was
shown that GBM patients who were “poor responders” overexpressed macrophage migration inhibitory factor(MIF) and that the combination of MN-166 with TMZ resulted in significant synergism in cell cycle arrest andapoptosis in vitro and resulted in significantly longer survival in a patient-derived xenograft mouse model (Haet al., 2019). In addition, MN-166 is a MIF-CD74 interaction inhibitor that reduces immune-suppressive
myeloid-derived suppressor cell (MDSC) generation and reverses their T cell suppressive capacity in vitro(Alban et al., 2020). The reversal of T cell suppressive activity also supports testing an immune checkpoint
inhibitor in combination with MN-166 to determine if it can further increase immune cell activation and improveclinical outcomes.
Immunohistochemistry evaluation was performed with pre-treatment tumor tissue samples to determine any
correlation between the expression of CD3, CD74, MIF, pERK, Ki67, and CD11b and patients that progressedfollowing five months of treatment with MN-166 and those that did not. The following graph shows that CD3
expression correlated with response to MN-166 treatment (i.e., patients with tumor progression had higher
CD3 tumor infiltration than patients with no progression, P<0.05) while expression of none of the other factors
showed a significant correlation.

The following table shows six-month progression-free survival (PFS6) results for patients that received at least
five cycles of MN-166. In patients with newly diagnosed GBM the PFS6 was 44% while for recurrent GBM thePFS6 was 31%.

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Lastly, the combination of MN-166 and anti-PD-1 or anti-PD-L1 was examined in preclinical GBM models. The
following graphs show that MN-166 and both anti-PD-1 and anti-PD-L1 show synergy in treating miceharboring SB28 tumor cells with substantial increases in survival when comparing the combination treatment
to anti-PD-1 alone (66 days vs. 28 days) and to anti-PD-L1 alone (34 days vs. 26 days). These encouraging
results support the potential testing of MN-166 and immune checkpoint inhibitor therapy in treating GBM
patients.

Financial Update
On November 9, 2023, MediciNova filed Form 10-Q with financial results for the third quarter of 2023. Thecompany reported revenues of $1.0 million in the third quarter of 2023 compared to $0.0 million of revenues
for the third quarter of 2022. The revenue is derived from a milestone payment from MediciNova’s partner
Genzyme based on dosing the first patient in a clinical trial of SAR444836, a phenylalanine hydroxylase
replacement gene therapy product based on adeno-associated virus (AAV) vector technology that is covered
under MediciNova’s assignment agreement with Genzyme Corporation. We believe that additional milestone
payments may be possible in the future, which could serve as a source of additional non-dilutive capital.
R&D expenses in the third quarter of 2023 were $0.8 million compared to $2.5 million in the third quarter of2022. The decrease was primarily due to a decrease in manufacturing expenses and the receipt of $0.7
million from BARDA for partial reimbursement of preclinical study costs. G&A expenses were $1.4 million inboth the third quarter of 2023 and 2022.
Net cash used in operating activities was $1.4 million for the third quarter of 2023. MediciNova exited the thirdquarter of 2023 with approximately $51.5 million in cash and cash equivalents. We estimate the company has
sufficient capital to fund operations for at least the next few years. As of November 7, 2023, the company had
approximately 49.0 million shares outstanding and when factoring in stock options a fully diluted share countof approximately 57.3 million.
Conclusion
We expect that the encouraging results from the Phase 2 trial of MN-166 in GBM along with the preclinicalresults showing synergism between MN-166 and immune checkpoint inhibitor therapy could lead to an
additional clinical trial of MN-166 in GBM and we look forward to updates from the company on that program.
The gene therapy milestone payments are an excellent source of non-dilutive capital, something which is nicefor the company to have during the current difficult market conditions. With no changes to our model ourvaluation remains at $27 per share.

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PROJECTED FINANCIALS
MediciNova Inc.
Income Statement

MediciNova, Inc.
MN-166 (Multiple Sclerosis)
MN-166 (ALS)
MN-166 (DCM)
MN-001 (NASH)
Grants & Collaborative Revenue

Total Revenues

2022 A

Q1 A

Q2 A

Q3 A

Q4 E

2023 E2024 E2025 E

$0
$0
$0
$0
$0

$0
$0$0$0$0$0$0$0$0$0$0$0$0
$0
$1

$0
$0
$0
$0
$0

$0
$0
$0
$0
$1

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0

$0

$0

$1

$0

$1

$0

$0

Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

Product Gross Margin

-

-

-

-

-

-

-

-

$9.1
$5.5
$0

$1.5
$1.5
$0

$1.7
$1.6
$0

$0.8
$1.4
$0

$2.6
$1.6
$0

$6.6
$6.0
$0

$10.0
$6.0
$0

$11.0
$6.5
$0

($14.6)($3.0)($3.3)($1.1)($4.2)($11.6)($16.0)($17.5)

-

-

-

-

----$0.6

$0.0

$0.4

$0.4

$0.2

$1.1

$0.1

$0.1

Research & Development
General & Administrative
Other Expenses

Operating Income
Operating Margin

Non-Operating Expenses (Net)

Pre-Tax Income($14.1)($2.9)($2.9)($0.7)($4.0)($10.5)($15.9)($17.4)

Income Taxes Paid

$0

$0

$0

$0

$0

$0

$0

$0

Tax Rate

0%0%0%0%0%0%0%0%($14.1)($2.9)($2.9)($0.7)($4.0)($10.5)($15.9)($17.4)Net Income
Net Margin

Reported EPS
YOY Growth

Basic Shares OutstandingSource: Zacks Investment Research, Inc.

--------($0.29)($0.06)($0.06)($0.01)($0.08)($0.21)($0.32)($0.35)--------

49.04549.04649.04649.04649.05049.04749.20049.500David Bautz, PhD© Copyright 2023, Zacks Investment Research. All Rights Reserved.

HISTORICAL STOCK PRICE

Source: Zacks Small Cap Research© Copyright 2023, Zacks Investment Research. All Rights Reserved.

DISCLOSURESThe following disclosures relate to relationships between Zacks Small-Cap Research (“Zacks SCR”), a division of Zacks Investment Research(“ZIR”), and the issuers covered by the Zacks SCR Analysts in the Small-Cap Universe.
ANALYST DISCLOSURES
I, David Bautz, PhD, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject
securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations orviews expressed in this research report. I believe the information used for the creation of this report has been obtained from sources I considered
to be reliable, but I can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and theopinions expressed are subject to change without notice.

INVESTMENT BANKING AND FEES FOR SERVICES
Zacks SCR does not provide investment banking services nor has it received compensation for investment banking services from the issuers ofthe securities covered in this report or article.
Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm
engaged by the issuer for providing non-investment banking services to this issuer and expects to receive additional compensation for such noninvestment banking services provided to this issuer. The non-investment banking services provided to the issuer includes the preparation of thisreport, investor relations services, investment software, financial database analysis, organization of non-deal road shows, and attendance fees
for conferences sponsored or co-sponsored by Zacks SCR. The fees for these services vary on a per-client basis and are subject to the numberand types of services contracted. Fees typically range between ten thousand and fifty thousand dollars per annum. Details of fees paid by thisissuer are available upon request.

POLICY DISCLOSURESThis report provides an objective valuation of the issuer today and expected valuations of the issuer at various future dates based on applying
standard investment valuation methodologies to the revenue and EPS forecasts made by the SCR Analyst of the issuer’s business.
SCR Analysts are restricted from holding or trading securities in the issuers that they cover. ZIR and Zacks SCR do not make a market in any
security followed by SCR nor do they act as dealers in these securities. Each Zacks SCR Analyst has full discretion over the valuation of theissuer included in this report based on his or her own due diligence. SCR Analysts are paid based on the number of companies they cover.
SCR Analyst compensation is not, was not, nor will be, directly or indirectly, related to the specific valuations or views expressed in any report orarticle.

ADDITIONAL INFORMATION
Additional information is available upon request. Zacks SCR reports and articles are based on data obtained from sources that it believes to bereliable, but are not guaranteed to be accurate nor do they purport to be complete. Because of individual financial or investment objectives
and/or financial circumstances, this report or article should not be construed as advice designed to meet the particular investment needs of anyinvestor. Investing involves risk. Any opinions expressed by Zacks SCR Analysts are subject to change without notice. Reports or articles or
tweets are not to be construed as an offer or solicitation of an offer to buy or sell the securities herein mentioned.

CANADIAN COVERAGE
This research report is a product of Zacks SCR and prepared by a research analyst who is employed by or is a consultant to Zacks SCR. Theresearch analyst preparing the research report is resident outside of Canada, and is not an associated person of any Canadian registeredadviser and/or dealer. Therefore, the analyst is not subject to supervision by a Canadian registered adviser and/or dealer, and is not required tosatisfy the regulatory licensing requirements of any Canadian provincial securities regulators, the Investment Industry Regulatory Organization ofCanada and is not required to otherwise comply with Canadian rules or regulations.

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