GBC Research reiterates “BUY” recommendation for SYGNIS shares with price target of €4.05
- Transition from technology company to product company
- New strategy implemented with TruePrime™
- Focus on proprietary commercialization
- Capital increase to fund further growth
Madrid, Spain and Heidelberg, Germany, November 19th, 2014 – GBC Research, a German independent research house focusing on listed small and midcap companies, has published a research update on the DNA amplification and sequencing tools company SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard segment of the German Stock Exchange).
In its current analysis, GBC reports on the new strategy of SYGNIS, whose main focus, apart from the further development of the product portfolio, is on the commercialization of proprietary products. Especially the marketing of PrimPol is representative for the new commercialization strategy of SYGNIS AG, aiming at reducing dependency on strategic partners. As part of this strategy, the proprietary commercialization of the first product line TruePrime™ based on PrimPol is planned already for the beginning of 2015. The resolved rights offer aiming for gross proceeds of up to €4.95 million should give the company the financial basis to fund the product pipeline and the proprietary SYGNIS kits.
GBC believes that the demand for NGS technologies will be driven by dynamic growth rates. The research institute MarketsandMarkets estimates the global NGS market volume, today worth $2.5 billion, to reach $8.7 billion by 2020. The expansion of the product portfolio and the relatively short time required for the development of SYGNIS’ products (usually less than two years) should allow a successful participation in market growth.
Based on an expected increase in sales, GBC estimates revenues for the fiscal years 2015 and 2016 with €2.06 million and €5.45 million respectively. GBC highlights that SYGNIS is well positioned with its product portfolio in order to participate in the high growth rates of the NGS market.
GBC has calculated a fair value per share of €4.05 based on the updated DCF model and thus reiterates the BUY recommendation with a current share price of €2.64. Including the first product launches by QIAGEN based on SYGNIS’ proprietary SensiPhi® technology and the successful completion of the funding of the new business model, the GBC analysis calculates a company value of €53.4 million
Press Release as PDF
For further information please contact:
Pilar de la Huerta, CEO/CFO