pepito (pandorum - symetry) is a FRAUD His name is ...
His target is...
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Paradigm Capital Inc, IIROC/TSX member 1
Claude Camiré, Analyst 416.360.1322
Alisa Beach, Associate 416.360.3579
August 6, 2008
Financial Summary (C$)
(end-Dec) Rev EPS EV/Rev P/E
FY06 $2.6 ($0.21) 37.7x Nmf
FY07 $8.4 ($0.09) 11.4x Nmf
FY08e $55.3 $0.05 1.8x 7.0x
FY09e $90.5 $0.08 1.1x 3.9x
All figures in C$ unless otherwise noted
?? ProMetic has signed a binding agreement with a US biotech
company for the use of PLI’s Protein Technology in the
development/manufacturing of multiple biopharmaceuticals.
?? No financial details released; however, using customary
upfront, milestone and royalty payments in the industry, we
estimate that this deal could be worth in excess of $200m.
?? This agreement could represent not only large financial
rewards but an additional significant validation of ProMetic’s
technology. We reiterate our Buy rating and $3.00 target price.
Financially Rewarding
If we assume that each therapeutic protein signed could be worth at least $75m in
upfront, milestone, and royalty payments, and we also assume that this agreement
covers three or more proteins, then we arrive at an overall potential deal worth of
over $200m. Furthermore, depending on the partner’s ability, PLI could also
assume manufacturing responsibilities like it has done for the Kedrion agreement.
This would generate additional revenues that could double the worth of this
agreement. Until the final agreement is announced, we cannot revise our
estimates and determine the full financial impact.
Easing Near-Term Financing Concerns
In addition to the potential payments listed, PLI’s new partner will make an initial
strategic investment in the company of $7m at a price of $0.47. At an approximate
~50% premium to PLI’s share price at the time the agreement was announced, this
represents a significant vote of confidence from a peer in the field. Furthermore,
the agreement provides for additional investments in ProMetic, which can be
triggered by either company, but are subject to certain predetermined conditions.
This new partner also has the right to representation on PLI’s Board of Directors,
which could bring significant expertise and exposure to the company.
Stock Rating:
12- target (C$) $3.00