Canaccord comment from Growth conference - Aug 16Merus Labs (MSL:TSX; MSLI:NASDAQ, C$1.23 | BUY, C$3.50 target) During Merus Labs presentation CEO Barry Fishman highlighted the steady cash flow and EBITDA from Merus base business and the shift of M&A focus towards products that present greater organic growth potential. We continue to see the opportunity for multiple expansion. Shares of Merus have recently been trading at a discount to its specialty pharma peers; however, given its efficient tax structure, low cost of capital, and active M&A strategy, we see no reason why Merus should not trade at a premium. Merus remains on track operationally. Although timelines have slipped somewhat (and the stock was punished accordingly), we believe that Merus remains on track to begin transfer manufacturing of Sintrom in the guided August/September timeframe. However, cost savings will be phased in and will not realize the full ~$8 million run rate until fiscal Q3 next year. Low cost of capital remains the key. We cannot stress enough the importance of Merus low cost of capital. We believe this enables the company to continue to execute on its M&A strategy and separates it from peers (by a wide margin). Whereas other specialty pharma companies have seen credit spreads blow out, we believe Merus is locked in with access to inexpensive capital. Balance sheet continues to get stronger. We believe that Merus remains well positioned to continue to execute its M&A strategy. With strong cash flows and scheduled debt repayments, we believe that Merus cost of borrowing has room to Merus Labs (MSL:TSX; MSLI:NASDAQ, C$1.23 | BUY, C$3.50 target) During Merus Labs presentation CEO Barry Fishman highlighted the steady cash flow and EBITDA from Merus base business and the shift of M&A focus towards products that present greater organic growth potential. We continue to see the opportunity for multiple expansion. Shares of Merus have recently been trading at a discount to its specialty pharma peers; however, given its efficient tax structure, low cost of capital, and active M&A strategy, we see no reason why Merus should not trade at a premium. Merus remains on track operationally. Although timelines have slipped somewhat (and the stock was punished accordingly), we believe that Merus remains on track to begin transfer manufacturing of Sintrom in the guided August/September timeframe. However, cost savings will be phased in and will not realize the full ~$8 million run rate until fiscal Q3 next year. Low cost of capital remains the key. We cannot stress enough the importance of Merus low cost of capital. We believe this enables the company to continue to execute on its M&A strategy and separates it from peers (by a wide margin). Whereas other specialty pharma companies have seen credit spreads blow out, we believe Merus is locked in with access to inexpensive capital. Balance sheet continues to get stronger. We believe that Merus remains well positioned to continue to execute its M&A strategy. With strong cash flows and scheduled debt repayments, we believe that Merus cost of borrowing has room to 0.00%