Beximco Pharmaceuticals (BXP.L)
SECTOR – HEALTHCARE
RATING – BUY*
MARKET CAP – £241m
CURRENT PRICE – 60p#
TARGET PRICE – 75p
ANALYST – VALDIM ALEXANDRE
Year-end Dec
2017A
2018E
2019E
2020E
Revenue (BDT Bn)
15.5
17.2
19.0
21.1
EBITDA (BDT Bn)
4.2
4.4
4.7
5.4
Adj. pre-tax Profit (BDT Bn)
2.9
2.9
3.2
3.7
Adj. EPS (BDT)
5.49
5.40
5.98
6.80
Net Cash/(Debt) (BDT Bn)
(4.3)
(6.5)
(6.7)
(3.6)
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners acts as Broker to Beximco Pharmaceuticals and therefore this information should be viewed as a Marketing Communication. (1 GBP = 117 Bangladeshi taka (BDT))
Completion of the acquisition of Nuvista Pharma Limited
NORTHLAND VIEW
- Beximco announced that today, further to news releases provided on 6 October 2017 and 19 January 2018, the Company has completed the acquisition of a majority stake in Nuvista Pharma Limited (‘Nuvista’).
- Nuvista, formerly Organon (Bangladesh) Ltd., has a long-term manufacturing and marketing collaboration with Merck Sharp & Dohme (MSD). In the year ended 30 June 2017 (the last audited accounts prepared by Nuvista), Nuvista generated revenue of BDT 1.71 billion, profit before taxation of BDT 118 million and had net assets of BDT 0.548 billion.
- A total of 10,013,474 Ordinary Shares have been acquired from seven individual shareholders having an aggregate holding of 85.22% of the Paid-up Capital of Nuvista.
This is the first acquisition by Beximco Pharma, a significant milestone, and it has the potential to accelerate the Group's revenue growth and earnings potential. The acquisition will provide immediate synergies and access to Nuvista’s portfolio of c.50 generics will strengthen Beximco Pharma’s position in the hormone and steroid drug market. Nuvista’s portfolio includes domestic market leaders such as Roxadex™, a corticosteroid anti-inflammatory.
COMPANY DESCRIPTION
Beximco Pharma manufactures and sells generic pharmaceutical formulation products and active pharmaceutical ingredients
MOTIF BIO (MTFB.L)
SECTOR – HEALTHCARE
RATING – BUY*
MARKET CAP – £81m
CURRENT PRICE – 32.5p#
ANALYST – VADIN ALEXANDRE
Year-end Dec
2015A
2016A
2017E
2018E†
Revenue (£m)
-
-
EBITDA (£m)
(5.7)
(29.4)
Adj. pre-tax Profit (£m)
(8.5)
(29.9)
Adj. EPS (p)
(13.9)
(13.9)
Under
Review
DPS (p)
-
-
Net Cash/(Debt) (£m)
24.8
26.0
P/E (x)
-
-
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Joint Broker to Motif Bio Plc and therefore this information should be viewed as a Marketing Communication.
Motif Bio Initiates NDA Rolling Submission for Iclaprim
NORTHLAND VIEW
- Motif announced the initiation of a rolling submission of a New Drug Application (‘NDA’) to the U.S. Food & Drug Administration (‘FDA’) for iclaprim, its investigational antibiotic for the treatment of acute bacterial skin and skin structure infections (ABSSSI). The NDA submission is expected to be completed during the second quarter of 2018.
- Iclaprim has received Qualified Infectious Disease Product (‘QIDP’) designation from the FDA together with Fast Track Designation. A candidate granted Fast Track Designation is eligible for a rolling NDA submission, which means that a company can submit completed sections of its NDA, rather than waiting until every section of the NDA has been finalised. Upon acceptance for filing by the FDA of a complete NDA, iclaprim will receive Priority Review status which will result in a review period of up to six months. Upon NDA approval as a new chemical entity with QIDP designation, iclaprim will be eligible for 10 years of market exclusivity in the U.S. starting from the date of first approval.
- The Company has also confirmed FDA has granted a small business waiver for the NDA application fee which is due upon submission of an NDA under the Prescription Drug User Fee Act (PDUFA). As a result, Motif did not have to pay the US$2.4 million application fee for this NDA submission. It also announced plans to issue its 2017 full year financial results by April 10, 2018.
Motif is clearly focused on completing its NDA submission as soon as practicable. It is also encouraging to see that the Company did not have to pay the US$2.4 million application fee for this NDA submission, which represents significant cash savings.
COMPANY DESCRIPTION
Clinical-stage biopharmaceutical company specialising in the development of novel antibiotics.
SKINBIO THERAPEUTICS (SBTX.L)
SECTOR – HEALTHCARE
MARKET CAP – £10m
CURRENT PRICE – 9.3p#
ANALYST – VADIM ALEXANDRE
Year-end Dec
2017A
2018E
2019E
2020E
Revenue (£m)
0
EBITDA (£m)
(0.7)
Adj. pre-tax Profit (£m)
(0.7)
Adj. EPS (p)
(1.1)
DPS (p)
0
No
Forecasts
Provided
Net Cash/(Debt) (£m)
0.2-
P/E (x)
-