Edison Healthcare Insight // July 2015 .
Published by Edison Investment Research .
INVESTMENT SUMMARY :
Zeltia is focused on the potentially high-growth marine oncology activities of its PharmaMar business and plans to conduct a reverse-merger whereby PharmaMar would absorb Zeltia, in advance of seeking a US IPO.
PharmaMar has built a pipeline of first-in-class cancer drugs for development with strategic partners.
Zeltia’s FY14 results highlighted ongoing revenue (+6% to €149.7m) and profit (EBITDA €25.7m, +8%) growth, with Yondelis remaining the key contributor.
Further potential catalysts in 2015 include fresh Yondelis approvals for soft tissue sarcoma in the US (PDUFA in October) and Japan (Q315); Aplidin Phase III data in multiple myeloma (Q415); and a Phase III study initiation for PM01183 (2nd generation Yondelis) in small cell lung cancer (SCLC).
INDUSTRY OUTLOOK :
Repositioning the group behind the PharmaMar name and conducting a US IPO could be transformational. The oncology portfolio has been validated through multiple global partnerships, eg J&J in the US and Taiho in Japan (over Yondelis) and Chugai in certain EU countries (for Aplidin).
Y/E Dec // Revenue // EBITDA
--------------- €m) ------- (€m)
2013 ------- 141.8 ------ 23.8
2014 ------- 149.7 ------ 25.7
2015e ------ 164.3 ------ 32,0
Edison Healthcare . Analyst : Christian Glennie .