GBC Research values SYGNIS at €42.6 million and issues a “BUY” recommendation
- This valuation amply exceeds the current market quotation and ascribes the shares a potential upside of nearly 70%.
- This is the second analyst coverage done this year that evaluates the company much higher than the current market price, confirming the potential market upside of the shares.
- GBC and Edison valuation support the robustness of the new business of SYGNIS.
- GBC bases their analysis on the current portfolio, including QualiPhi®, which was licensed to Qiagen and will be launched in the third quarter this year.
Madrid/Heidelberg, 17 July 2013 – 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 Pharma AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard segment of the German Stock Exchange). As a result of GBC’s analysis of the Company, the objective value of SYGNIS, taking into account the launch of QualiPhi® in the third quarter of 2013 – licensed by Qiagen – as well as the license of three further products this year: PrimPol, QualiPhi mutants and Double Switch, would reach €42.6 million.
SYGNIS shares were listed at €2.75 on the Frankfurt stock exchange at close of markets on Friday, 12th July, 2013 and a market cap of about €26 million. The GBC analysis values the Company at a premium of nearly 70% to the close price last Friday.
The out-licensing agreement with Qiagen for QualiPhi® in the DNA amplification space serves as a 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, GBC expects first market sales for QualiPhi® to be generated in the current financial year. For 2014 GBC assumes a significant revenue increase, which should allow the company to achieve operational break-even. In future, SYGNIS expects to deliver additional product developments in the life sciences sector, which should lead to an acceleration of top-line growth.
Different studies project high growth rates for next generation sequencing (NGS) technologies in the coming years, which are expected to average 22.7% compound annual growth rate (CAGR) through 2016. Following GBC’s analysis, SYGNIS’ broad product range places the Company in a very good position to benefit from 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.
“For SYGNIS, to have two independent first level analysts, from two different institutions and countries, predicting a target valuation around €40 million, is a clear evidence of the strength of the new business approach and the important potential upside the share offers to investors” commented Pilar de la Huerta, CEO/CFO of SYGNIS.
Press Release as PDF