Skin Care PortfolioAs part of the Crescita deal with valeant, four high-end medical skin care brands, Knight entered into an exclusive distribution, licence and supply agreement to commercialize all Intega's current and future products in Israel, Romania, Russia, sub-Saharan Africa and the Caribbean.
Current sales of these skin care products in Canada { and mostly in Quebec ) are about $10 million.
Sales have stagnated due to neglect by Valeant, but the skin care market is very large and is growing rapidly.
The skin care market of I srael, Romania, Russia, sub-Saharan Africa and the Caribbean. is about 7 times ( $10 billion ) that of Canada, a market which offers considerable upside and which crescita will be expanding using both internal and external salesmen.
However, even considering current sales, Knight could expect combined sales in excess of $50 million from these skin care products within its licensed regions.
IMO, Crescita should be able to double sales in Canada, with its active direct and indirect sales efforts.
This opens the possibility that Knight could expect sales in excess of $100 million from these skin care products, once it activates its sales teams.
Average market cap peer valuation of junior healthcare stocks like GUD is about 7.5 times annual sales.
Without debt, this multiple expands to 10 10 times.
Its why, when its other extensive deals are integrated and considering over $600 million in cash, GUD is very undervalued at current levels