IA analist update report Breathe Easy on this VPH Deal
Summary
We expect the market to react positively to this morning’s announcement of a commercialization and supply agreement with Novartis (NOVN-S, Not Rated) for Enerzair Breezhaler® and Actectura Breezhaler®. Our preliminary estimates suggest combined peak sales above $140M with EBITDA margins of these new products near 25%. These medications launch in Q2/C21 and bring VPH into a lucrative and growing $700M Canadian asthma market that will transform the top and bottom lines of the Company over the next 8 years. We expect VPH to rapidly scale up its operations through aggressive hiring and expansion of infrastructure to support these major new products.
All currency figures appear in Canadian dollars unless otherwise specified.