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Spectral Medical Inc T.EDT

Alternate Symbol(s):  EDTXF

Spectral Medical Inc. is a Canada-based late-stage theragnostic company advancing therapeutic options for sepsis and septic shock. The Company develops and commercializes a treatment for septic shock utilizing its Endotoxin Activity Assay (EAA) diagnostic and the Toraymyxin therapeutic (PMX). PMX is a therapeutic hemoperfusion device that removes endotoxin, which can cause sepsis, from the bloodstream and is guided by the Company’s EAA. PMX is approved for therapeutic use in Japan and Europe and has been used safely and effectively on more than 340,000 patients to date. It has pioneered the development of biochemical markers for the clinical syndrome known as septic shock. It is continuing its legacy business of manufacturing and selling certain proprietary reagents. It develops, produces and markets recombinant proteins, antibodies and calibrators. These materials are sold for use in research and development, as well as in products manufactured by other diagnostic companies.


TSX:EDT - Post by User

Post by mercedesmanon Oct 27, 2022 10:53am
215 Views
Post# 35053059

EBITDA Multiples updated...

EBITDA Multiples updated...For the Health and pharma Sector's worldwide (by year) are still ranging between

10 and 30 for 2022

https://www.statista.com/statistics/1030111/enterprise-value-to-ebitda-in-the-health-and-pharmaceuticals-sector-worldwide/

Lets use Spectral's presentation EBITDA calc's for PMX using the average of between 35 and 45% penetration, or roughly $ 200M USD

Let's also use THE MOST CONSERVATIVE MULTIPLE to arraive a a "value" for PMX

$ 200M x 10 = $ 2B USD

Say fully diluted is 350M shares

$ 5.71 USD  or   $ 7.71/sh CAD

https://www.statista.com/statistics/1030111/enterprise-value-to-ebitda-in-the-health-and-pharmaceuticals-sector-worldwide/

Remembering that this calc:
  • uses the low end of industry averages (high end = 3X higher)
  • excludes Cdn usage of PMX (add 10% based on population)
  • excludes  EAA revenues (worldwide and usage beyond just in conjunction with PMX)
  • ingnores possible use of PMX for a subset of severe Covid-19 patients (as advocated first by Ronco and now apparently by Kellum)
  • ignores the potential for broader label usage and PMX for other conditions (Eden?)
  • ignores studies showing the advanatage of additional cartridges in many cases (Eden?)
  • ignores the possibility/hypothesis of under-dosing in certain situations (e.g EAA >.9) (Eden?)
  • uses Spectral's EBITDA numbers (includiing >5 year old Sepsis stats for the US) - when we know that Sepsis is definitely on teh increase (some say growing at 8% per year)
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