SBA Member, 10.04.2018
VALUATIONLAB published an update of the Cosmo Valuation Report “No guts, no glory” (see PDF below).
As guided, FY 2017 results were affected by heavy investments in the build up of the US sales organization Aries Pharma to maximize long-term profitability in the lucrative US market, which will continue in FY 2018, leading to a temporary loss in both years. We expect Cosmo to return to profitability in FY 2019 once its late stage pipeline is rolled out in the US and globally, with rising profit margins. US approval of MethyleneBlue in May with global peak sales of USD 700+ mn should be transformational for Cosmo. Rifamycin SV/Rifafalk is likely the most underestimated pipeline product with US and EU approval in its first indication for travelers’ diarrhea expected in Q4 2018.
Key catalysts include:
- Uceris arbitration award (Q2 2018)
- MethyleneBlue PDUFA date (21 May 2018)
- Rifamycin SV/Rifafalk US & EU approval in travelers’ diarrhea (Q4 2108)