Following the release of in-line third-quarter 2021 results, Canaccord Genuity analyst Tania Gonsalves sees a recent dip in shares of Medexus Pharmaceuticals Inc. (
) as a buying opportunity, leading her to raise her rating to “buy” from “hold”
After the bell on Monday, the Montreal-based company reported revenue of $31.5-million, narrowly below Ms. Gonsalves’s $32.9-million projection but in line the consensus of $31.6-million. Adjusted EBITDA of $5.1-million exceeded the estimates of both the analyst ($4.9-million) and the Street ($4.4-million).
“Last month, MDP in-licensed the U.S. rights to treosulfan, a drug we estimate could hit $242.0-million in peak sales,” said Ms. Gonsalves. “Despite the work that comes with launching a drug such as this, for instance building out a brand new sales team, MDP continues to deepen its pipeline of high-quality in-licensing opportunities. It is prioritizing those that provide the best potential to leverage the existing North American commercial infrastructure. In January, MDP also submitted an application to list on the NASDAQ in order to broaden its potential investor base. This makes sense considering 3/4 of sales come from the U.S. today, a number which will materially increase if and when MDP launches treosulfan in the U.S..”
She maintained a $9.50 target for Medexus shares. The current average is $12.50.
“We believe there is value here ahead of treosulfan’s August 2021 PDUFA date,” she added.