EQT IX Biopharma (42C) – Bullish Investment Case

Current Price : $0.22

Portfolio Context: 5.5% allocation (controlled risk)

Time Horizon: 6–12 months

🔥 1️⃣ Transformational US$41M DoD Contract

Major catalyst secured.

✔ US$41M non-dilutive funding

✔ Funds Phase 3 development of Wafermine®

✔ Supports potential FDA Emergency Use Authorization (EUA)

✔ Sole-source U.S. government award

This significantly reduces:

Dilution risk

Funding uncertainty

Cash runway concerns

This is not speculative hype — it’s government-backed validation.

💊 2️⃣ Positioned in Non-Opioid Pain Market

Global shift away from opioids is structural.

Wafermine®:

Sublingual ketamine wafer

Rapid pain relief

Designed for battlefield & emergency settings

Potential hospital & civilian expansion later

Non-opioid pain management is a high-demand segment with strong policy support.

🏛 3️⃣ Government Endorsement = Credibility Boost

U.S. DoD involvement signals:

✔ Clinical confidence

✔ Strategic importance

✔ Potential early military adoption

This moves 42C from speculative biotech → government-backed clinical asset.

Few SGX small caps get this level of validation.

💰 4️⃣ Improved Financial Position

With US$41M spread over ~36 months:

Stronger balance sheet

Lower near-term need for placements

Greater negotiating power in partnerships

Cash runway likely extended into 2027+.

This is critical for Phase 3 biotech companies.

📊 5️⃣ 12-Month Valuation Outlook

Realistic valuation scenarios:

🧱 Base Case:

$0.30 – $0.35

🚀 Bull Case:

$0.40 – $0.60

These reflect:

Continued Phase 3 progress

Positive interim updates

Possible EUA momentum

Additional contracts

At $0.22, risk/reward is asymmetrically attractive.

📈 6️⃣ Technical Setup

Key Levels:

• $0.24 – Breakout trigger

• $0.27 – First supply zone

• $0.30 – Major resistance

• $0.35+ – Momentum zone

Holding above $0.20 keeps bullish structure intact.