There’s a “bright outlook” ahead for oncology and dermatology technology specialist Incanthera PLC (AQSE:INC), according to a new research conducted by Stanford Capital Partners.
On a technical level, Incanthera’s Skin+CELL product addresses the problem of topically delivering B3 niacinamide compounds, which are effective in repairing skin damage caused by sun exposure and removing pigmentation and wrinkles past the upper skin barrier.
On a business level, Stanford sees Incanthera as “a highly scalable business model based on its partners’ expertise in market access, manufacturing and distribution”.
Furthermore, Incanthera’s low central cost structure “means that top-line growth has the potential to translate into high margins and strong cash generation”.
Skin+CELL will soon be available in 60 Marionnaud (part of the Watson Health and Beauty cosmetics group) stores across Austria and Switzerland, with a launch date tipped for September.
A confirmed production order of 250,000 underpins Stanford’s revenue estimates for financial 2025 of £12 million.
Furthermore, “the opportunity to expand distribution into A.S. Watson's retail network is becoming a reality, giving further access across Europe (8,300 outlets) and Asia (7,900 outlets in China, Malaysia, Thailand and the Philippines”.
“Our revenue outlook demonstrates the key feature of the Incanthera business model which is the combination of ‘outsourced’ manufacturing and distribution combined with low centralised costs, through which top line growth translates into margin expansion and strong cash generation,” said Stanford analysts.
As for share price estimates, Stanford sees fair value at 200p per share, based on peer group-based valuations.
Given Incanthera’s current market valuation of 32p per share, Stanford clearly expects exponential growth in the near to mid-term.