GBC Research reiterates “BUY” recommendation on SYGNIS AG with a price target of €6.00
- Valuation exceeds the current market capitalization (XETRA closing, April 15th) with a potential upside of nearly 28%
- GBC Research valuation supports the decreased risk profile of the company following the first product launches and due to the improved financial situation
- GBC Research bases their analysis on the successful restructuring and cost containment as well as a full pipeline of products ready to be out-licensed during 2014
Madrid/Heidelberg, Germany, April 16th, 2014 – GBC Research, a German independent research house focusing on listed small, and midcap companies, has published a full analysis of the DNA amplification and sequencing company SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard segment of the German Stock Exchange). As a result of GBC’s analysis of the Company, the value of SYGNIS would reach €63.2 million, reflecting the launch of the first products based on SYGNIS proprietary SensiPhi® technology from the license agreement with QIAGEN as well as the successful completion of the financing of the new business model.
SYGNIS shares traded at €4.69 on the Frankfurt stock exchange at close of markets on Tuesday, April 15th, 2014, representing a market capitalization of about €50 million. The GBC analysis values the Company at a premium of nearly 28% to yesterday’s closing price.
One important driver for the market of DNA-amplification and -sequencing is the increased knowledge based on genetic information around e.g. the development of specific diseases in drug development, the fact that patients respond different to treatments in personalized healthcare or the opportunity to diagnose a disease based on mutations found in the patients’ genome in molecular diagnostics. The growing importance of biomarkers is also reflected in the increasing number of clinical studies using genetic information. Between 1990 and 2005 the number of clinical studies using biomarkers increased from 4.0% to 20.0% (BCG Report, Medical Biotechnology in Germany, 2011). Based on this, the global volume of the personalized healthcare market is estimated to reach $148.4 billion by 2015 reflecting in a 5-years CAGR of nearly 12% with even accelerating growth rates beyond.
With its broad portfolio of ready to marketed products SYGNIS is best positioned to benefit from this developments and to sign additional license agreements with market leading industry partners in the fields of Next Generation Sequencing, personalized medicine, molecular diagnostics and drug development.
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For further information please contact:
Pilar de la Huerta, CEO/CFO