Vancouver, British Columbia--(Newsfile Corp. - October 20, 2015) - PI Financial has initiated coverage on Medicure Inc, (TSXV: MPH).
Analyst Sheila Broughton gives the company a buy recommendation and 12-month target of $5.75, a premium of 60% to the $3.60 price on October 5th, the day the report was issued.
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Medicure is a specialty pharmaceutical company focused on the development and commercialization of therapeutics for the US hospital market. The company has the exclusive U.S. marketing rights to Aggrastat, which was approved for low dose by the FDA on May 14, 1998, for the treatment of acute coronary syndrome.
Medicure's sales of Aggrastat have been increasing since 2012 and the company became profitable in 2014. Medicure recently reported 2nd quarter results, with revenue growth of 12% to $3.8 million.
The company recently applied to expand Aggrastat's label to include patients with ST segment elevation myocardial infarction. A positive FDA review could broaden Medicure's target market by 20 to 30%.
The company owns 5% of Apicore, a niche API manufacturing service prover with operations in the US and India, and has an option to buy the remaining 95%.
Analyst Sheila Broughton stated: "We are forecasting 2015 revenue to increase 193% to $15.4 million and adjusted EBITDA to increase 79% to $3.0 million. In 2016 we are forecasting revenue to increase a further 20% to $18.5 million and adjusted EBITDA to increase 41% to $4.3 million."
The shares are currently trading at $3.45, well below PI Financial's target price of $5.75, and with 14.4 million shares outstanding, the company is capitalized at $49.7 million.
For more information, please visit the company's website www.medicure.com, call 1-888-435-2220 ext 231 or email ir@medicure.com.
For more information about PI Financial or to obtain a copy of their research report, contact your nearest PI Financial office. Their branches are listed on their website at www.pifinancialcorp.com.
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