Apontis Pharma (APPH): Initiation - A phoenix rises

London, UK, 14 May 2021

Apontis Pharma (APPH): Initiation - A phoenix rises

Apontis Pharma is a speciality pharma business aiming to leverage its commercial heritage in Germany and deliver on its rapid growth ambitions. The company has carved out a sizeable niche for its 'single pill' products, which are combinations of commonly co-prescribed generic drugs that have been reformulated into in one branded pill (2020 sales of €19.0m). Alongside the 'single pill strategy', Apontis also has co-marketing agreements for several branded drugs (2020 sales of €16.6m). It is the increasing mix of the higher-margin single pills that we believe should benefit current operating leverage and provide the foundations for an enticing margin story. Apontis shares were placed at €19.0/share, raising gross proceeds to the company of €38m, translating to an enterprise value (EV) of c €145m.

Consensus is not yet available for Apontis, but based on management's FY21 revenue guidance of €48.5m, the shares are priced at c 3.0x EV/sales, within the range for established peers, but at a c 8% discount to the average for the group. Broader recognition of its double-digit sales growth potential, coupled with the potential for a strong margin story underpin the momentum.

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Dr Sean Conroy +44 203 077 5700 [email protected]

Dr Jonas Peciulis +44 203 077 5728 [email protected]

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        www.linkedin.com/company/edison-group-/

Twitter           www.twitter.com/Edison_Inv_Res

YouTube       www.youtube.com/edisonitv