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Original-Research: SYGNIS Pharma AG (von GBC AG): BUY
Original-Research: SYGNIS Pharma AG – von GBC AG
Aktieneinstufung von GBC AG zu SYGNIS Pharma AG
Unternehmen: SYGNIS Pharma AG
ISIN: DE000A1RFM03
Anlass der Studie: Research Report (Initial Coverage)
Empfehlung: BUY
Kursziel: 4.55 EUR
Kursziel auf Sicht von: End FY 2014
Letzte Ratingänderung:
Analyst: Cosmin Filker, Felix Gode
Concentration on strong-growth markets after restructuring; BUY
Following the completed restructuring in the context of the reverse
acquisition, SYGNIS Pharma AG’s focus lies in the area of DNA amplification
and DNA sequencing. The current product portfolio encompasses four fully
developed technologies – QualiPhi, novel QualiPhi mutants, PrimPol and
DoubleSwitch – all of which are close to market launch. At the same time,
the previous projects in the field of drug development were discontinued,
which significantly lowered the company’s risk profile. Overall, the focus
is on projects which compared to drug development benefit from
substantially shorter development timelines and further have lower
financing requirements.
The range of applications of DNA analysis is relatively broad and enjoys
growing acceptance, not least due to the rising technological progress and
related cost effects. Different studies project high growth rates for NGS
technologies in the coming years, which are expected to average 22.7% per
year to 2016. Its broad product range puts SYGNIS Pharma AG in a good
position to participate in this strong market growth, especially as the
technologies developed by the company have the potential to become new
world standards in the area of DNA amplification and sequencing.
A good example is QualiPhi, which is a further development of the Phi 29
polymerase and has significantly improved properties. It allows for DNA
amplification using lower starting material, and further in a less
time-consuming and hence substantially more efficient process. These
advantages are clearly reflected by the out-licensing agreement signed with
Qiagen in July 2012. (Qiagen is one of the largest providers of sample and
assay technologies worldwide in the area of molecular diagnostics.) SYGNIS
expects first revenues from this distribution partnership in the current
financial year (2013).
The out-licensing agreement with Qiagen for QualiPhi in the DNA
amplification space serves as blueprint for other SYGNIS products. Since
their development has already been completed, the entire product portfolio
could be out-licensed in the current financial year. Based on this
assumption, we expect first market sales for QualiPhi to still be generated
in the current financial year. For 2014 we assume a significant revenue
increase, which should allow the company to achieve operational break-even.
In subsequent years SYGNIS Pharma AG should present additional product
developments in the life sciences sector, which could lead to an
acceleration of top-line growth.
This should also lead to a gradual improvement of the company’s financial
position. A particular point of focus is the company’s liquidity, with
management expecting available financial resources to be sufficient to fund
operations through to mid-2013. Other than approaching new investors and
receiving additional loans (including from existing shareholders), SYGNIS
Pharma AG can take advantage of an existing standby equity distribution
agreement (SEDA).
Based on a discounted cash flow (DCF) model, we estimate a fair value for
the company (end of financial year 2014) of EUR4.55 per share. The current
share price of EUR2.60 per share therefore represents an 75.0% discount vs.
our fair value. We therefore initiate on SYGNIS Pharma AG with a BUY
rating.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/11987.pdf
Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
——————-übermittelt durch die EQS Group AG.——————-
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
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