DIR Announces Availability of Research Update
PHOENIX, AZ / ACCESSWIRE / September 10, 2019 / Discovery Investment Research (DIR), an equity research firm specializing in micro and small-cap stocks, announces the availability of a research update on Medexus Pharma (PDDPF) (MDP). The update on Medexus Pharma, a specialty pharmaceutical company with operations in Canada and the United States, can be obtained by visiting DIR's website (www.discoveryinvresearch.com). The following key attributes serve as the basis for DIR's current recommendation:
- Results for Q1 FY '20 were as follows: (i) Revenue: $16.1 Mil; (ii) Operating Loss: $1.1 Mil; (iii) Adj. EBITDA: $0.5 Mil; (iv) Net Loss: $2.2 Mil and (v) CFO: -$0.2 Mil
- Our revenue estimate ($71.5 Mil) for the FY remains essentially unchanged….we hold a cautiously-upward bias if some of the newer products begin to gain traction later in the FY.
- Adj. EBITDA was a positive $0.5 Mil…below our estimate due mainly to R&D expenses that we had not anticipated. We now believe that $8.1 Mil is a realistic Adj. EBITDA target for the full fiscal year, as we anticipate continued R&D expenses. These expenses mainly stem from the company's efforts to provide additional information to the FDA.
- Results for the current quarter (ending Sept. 30th) should be bolstered by: (i) seasonal strength of NYDA, (ii) a full-quarter contribution from the 15 mg dose of Metoject, and (ii) seasonal strength of Rupall during the peak allergy months.
- We maintain our price target of $7.65 per share (USD). We derive this valuation by applying a multiple of approx. 3X to projected revenue of $53.6 Mil for FY '20 and deducting net debt of $20.8 Mil.
- There are still many risks to be considered including integration of the acquisitions, contingent liabilities, further dilution due to convertible securities, etc.
Pediapharm is a specialty pharmaceutical company with operations in both Canada and the United States. The company markets several products aimed at niche markets for both children and adults, including pharmaceuticals for Rheumatoid Arthritis and other auto-immune disorders.
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SOURCE: Discovery Investment Research
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