RE:RE:Paradigm Resumes coverage: Buy; $3.75 TargetWHERE DOES THIS INFO CME FROMAGE ?
You post a comment with a TARGET price increased to $3,30 but your title sans $ 3,75 ???
Closly wrote: The last thing I have for them is December 2014
No info on a stop covering! or an update
do you?
Paradigm Capital: Buy rating and $3.30 target price for PLI
According to Paradigm Capital:
https://personal.crocodoc.com/SHCK2bj
ProMetic Life Sciences Inc.
Stock Rating: Buy
12Mth Target $3.30 ↑ previously $3.10
Russia Strategic Alliance Signed with Generium Pharma
Investment Thesis. PLI offers an attractive risk/return opportunity at current levels, due to: 1) the base revenue provided by resin sales to licensees, which is increasing and essentially “locked in”; 2) the signed partners who bring financial and commercial support to develop products; and 3) the blue sky provided by additional partnership/licensing deals and the Therapeutics business.
Event
PLI has entered into a strategic alliance in Russia and CIS with Generium Pharmaceuticals.
Details
Key Components of the Strategic Alliance with Generium:
- Manufacturing Capacity: Generium will build a 600,000L facility in Russia that will utilize PLI’s plasma purification technology (PPPS). Construction is under way.
- Resin Supply and Royalties: PLI will supply resin to the Generium facility (we believe up to ~$15–$20M in resin sales annually once fully ramped up) and earn a mid-single-digit royalty on Russian sales.
- Codevelopment and Profit Sharing of New Products: Generium will fund the development and clinical programs for two coagulation factors for the treatment of hemophilia that PLI would not likely have developed internally.
PLI will receive $6M upfront and $11M in additional milestones ($4M expected in 2015).
Generium will act as a contract manufacturer for PLI for certain products.
Conclusion
In our opinion, this is a good deal and illustrates the value of PLI’s plasma purification technology. The Russian plasma therapeutics market appears to be in its infancy and this deal positions PLI to benefit from its future growth. Additionally, Generium is a global player in the hemophilia market, producing recombinant versions of three coagulation factors, and is looking to establish lower-priced plasma-derived products in the Russian market where recombinant therapies are often unaffordable. As a result, the alliance with PLI is mutually beneficial as Generium gains access to technology that provides the highest yields of plasma-derived coagulation factors and PLI receives two additional products developed that it would not likely have done so on its own. In addition to the coagulation factors, Generium gains Russian rights to other plasma-derived products, including IVIG and albumin, which currently make up smaller percentages of the total market than is typical in other markets. PLI benefits by gaining access to the growing Russian market, selling resin to Generium to produce all products, earning a mid-single-digit royalty on all Russian sales and gaining access to additional capacity that it can use as a contract manufacturer if the capacity is available. Given the attractiveness of the deal, we are increasing our target price to $3.30 and maintaining our Buy rating