Valeo Pharma Inc T.VPH

IA analist update report

[eric40]

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.

[sah1]

Surprised that the analyst report has not generated a stronger market response. Based on the projections, this deal alone could be at least $8/share at peak sales. Time to build a position

[eric40]

I guess the market wonder if Valeo has enough cash runway to finance the day to day operations and the hiring and formation of nearly 40 new employees in very short term. Steeve said that the new product from Novartis will be technically available for everyone as soon as next week and they are hiring now and formation on the new products should be done by mid may, meaning there is money to be

[sah1]

I guess we will know the answer tomorrow evening