RE:5N Plus price target raised...Partnering to produce Bismuth-based pharma materials VNP has acquired an equity stake and a strategic partnership in Microbion, a clinical-stage pharmaceutical company. Under a supply and development agreement, VNP will assume responsibility for the manufacturing of Bismuth-based active pharmaceutical ingredients required in Microbion's family of drug products currently under development, while Microbion will retain responsibility for product development, manufacturing and commercialization. We believe VNP is well positioned for this opportunity, with approvals from the United States Food and Drug Administration for its pharma operations in Germany that process Bismuth chemicals. Focus for '21E on electronic materials and healthcare While not material in the short-term (with the drugs still under development), the partnership exposes VNP to the sizable diabetes and lung infection markets. We note that the total addressable market associated with Microbion's antibiotic and antibiofilm drug products is estimated to be in the billion-dollar range, with Active Pharmaceutical Ingredients comprising ~ 5% of the overall market value. Looking into the crystal ball for 2021, we believe VNP could continue to bolster its growth prospects for higher margin materials, utilizing VNP's core competencies in material science and ultra-high purity materials with a focus on engineered powders, engineered semiconductor substrates and ultra-high-purity compounds, including Active Pharmaceutical Ingredients. Still lags peer group on relative valuation Relative to peers, which are trading at over 35x P/E on 2021E EPS, VNP continues to trade at a steep discount at 15x P/E (6.1x EV/EBITDA). Further we believe Q4 results should be solid, with potential for VNP to land in the upper-end of its guidance range of $25 mln to $28 mln in adj EBITDA for '20E (we estimate ~$28.7 mln). Minor metal markets have strengthened, which could provide an uplift to estimates in future quarters. Increasing target to $4.00/sh, maintain OP rating We have increased our target to $4.00/sh (was $2.90/sh), based on a 18x 2021E EPS estimate (was 12x) at a CADUSD FX of 0.79. VNP could sustain higher multiples going forward, given its progress towards development of high-margin and higher growth market opportunities.