SECTOR: HEALTHCARE; MINING
Beximco Pharmaceuticals (BXP.L)
SECTOR – HEALTHCARE
RATING – BUY*
MARKET CAP – £233m
CURRENT PRICE – 57.5p#
TARGET PRICE – 75p
ANALYST – VADIM ALEXANDRE
Year-end June
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 Limited acts as Broker to Beximco Pharmaceuticals and therefore this information should be viewed as a Marketing Communication. 1 GBP = 117 Bangladeshi taka (BDT)
Beximco Pharma commences export of third product to the US
NORTHLAND VIEW
- Beximco Pharma has commenced export of Methocarbamol tablets to the US market.
- Methocarbamol is a muscle-relaxant, used for pain relief associated with acute musculoskeletal conditions. It is the generic equivalent to Auxilium Pharmaceuticals' Robaxin tablets.
- The first consignment was delivered on 21st April 2018.
- According to IQVIA market data, the US market for Methocarbamol is currently valued at US$23.37 million.
Commencement of export for Methocarbamol demonstrates the Company’s commitment to growing its presence in the US, the largest pharmaceutical market by sales. Methocarbamol is the third product exported to the US by the Company, following Carvedilol and Sotalol (both cardiovascular therapies) in August 2016 and November 2017, respectively. Beximco Pharma remains the only Bangladeshi pharmaceutical company to export drugs to the US market.
COMPANY DESCRIPTION
Beximco Pharma is a Bangladeshi company which manufactures and sells generic pharmaceuticals.
SAVANNAH RESOURCES (SAV.L)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £37.5m
CURRENT PRICE – 5.5p#
ANALYST – DR RYAN LONG
Year-end Dec
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(1.8)
(2.8)
Adj. pre-tax Profit (£m)
(1.8)
(2.8)
Adj. EPS (p)
(0.46)
(0.53)
DPS (p)
-
-
Net Cash/(Debt) (£m)
0.7
1.2
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 Nomad and provides commissioned research coverage to Savannah Resources and therefore this information should be viewed as a Marketing Communication.
Mutamba update
NORTHLAND VIEW
- Savannah Resources and its consortium partner, Rio Tinto, continue to make progress at the Mutamba Heavy Mineral Sands Project, located in Mozambique, while the partners await the award of three mining lease applications. The licence applications are expected to be issued around the start of October 2018.
- Following extensive testing, the pilot plant has been placed on care and maintenance while a bulk sample is obtained.
- The Company continues its community development activities that are part of the licencing process.
- The scoping phase of the Pre-Feasibility Study (PFS) is now advanced and the initial key studies for the PFS have been sequenced with roll-out underway.
Savannah has not been idle while it awaits the award of its Mining Lease applications at the Mutamba Heavy Mineral Sands Project, located in Mozambique. The Company is continuing preparations for the extraction of a bulk sample for the next phase of metallurgical test work and has been preparing to commence the PFS.
COMPANY DESCRIPTION
Savannah Resources is an energy metals group with copper-gold projects located in Oman, lithium projects in Portugal, and a operates a mineral sands project in Mozambique that is a JV with Rio Tinto