Faron Pharmaceuticals Oy · LSE:FARN
Faron Pharmaceuticals Oy — H2 2022 Earnings Presentation
14 slides from Faron Pharmaceuticals Oy's earnings presentation, Mar 6, 2023
Slide 1: Faron Pharmaceuticals Company report
Faron Pharmaceuticals Company report 03/06/2023 07:30 Antti Siltanen +358 45 119 6869 antti.siltanen@inderes.fi Inderes corporate customer This report is a summary translation of the report “Verisyöpätutkimus BEXMAB täydessä vauhdissa” published on 3/6/2023 at 7:24 am
Slide 2: Blood cancer study BEXMAB in full swing
Blood cancer study BEXMAB in full swing We reiterate our Reduce recommendation and EUR 3.0 target price for Faron after the H2 report. Faron has prepared for Recommendation increased bexmarilimab production and accelerated its BEXMAB study, which resulted in higher R&D costs and a weaker R isk resul
Slide 3: Share price, revenue, EBIT, risk factors and valuation
Share price Revenue and EBIT % EPS and dividend 7.0 0.00 0.00 0.00 0.00 0.00 0.00 9.0 0.0 % 2020 2021 2022 2023e 2024e -0.02 2025e 6.0 -100000.0 % -0.03 -200000.0 % 5.0 -300000.0 % 4.0 -400000.0 % -0.25 3.0 -500000.0 % -0.36 -600000.0 % -0.40 2.0 -700000.0 % -0.48 0.0 0.0 0.0 0.0 0.0 1.0 -800000.0 %
Slide 4: Production ramp-up and R&D costs moving forward depressed profitability
Production ramp-up and R&D costs moving forward depressed profitability Estimates vs. outcome H2’22 • The operating loss was EUR 14.1 million, which was clearly more than our expectation due to R&D costs. Administrative costs developed according to our expectations. • The increase in R&D costs is ex
Slide 5: Changes in modeling
Changes in modeling Estimate revisions 2023e-2024e Estimate change drivers • We have moved the costs of the BEXMAB study forward in our estimate • The results of published research may change our from 2024 to 2023, due to the study progressing faster than expected. assessment of the probability of c
Slide 6: Valuation image remains unchanged
Valuation image remains unchanged Valuation Share price 2023e 3.74 2024e 3.74 2025e 3.74 The valuation is based on risk-adjusted estimates Valuation is highish compared to peers Number of shares, millions 63.5 63.5 63.5 Market cap 237 237 237 Our valuation is based on risk-adjusted estimates that As
Slide 7: Valuation table
Valuation table Valuation 2018 2019 2020 2021 2022 2023e 2024e 2025e 2026e Share price 3.30 2.91 3.24 3.71 3.74 3.74 3.74 3.74 Number of shares, millions 31.0 43.3 46.9 53.2 59.8 63.5 63.5 63.5 63.5 Market cap 143 136 172 222 237 237 237 237 EV -1.9 138 135 169 228 266 267 269 265 P/E (adj.) 0.0 neg
Slide 8: Income statement
Income statement Income statement H1'21 H2'21 2021 H1'22 H2'22 2022 H1'23e H2'23e 2023e H1'24e H2'24e 2024e 2025e 2026e Revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.0 24.3 EBITDA -10.3 -10.5 -20.8 -13.5 -13.9 -27.4 -7.8 -7.8 -15.6 0.0 0.0 -0.8 -1.5 5.1 Depreciation -0.2 -0.2 -0.3 0.2 -0
Slide 9: Balance sheet
Balance sheet Assets 2021 2022 2023e 2024e 2025e Liabilities & equity 2021 2022 2023e 2024e 2025e Non-current assets 1.1 1.5 1.4 1.3 1.2 Equity 2.9 -11.5 -27.6 -28.9 -31.0 Goodwill 0.0 0.0 0.0 0.0 0.0 Share capital 2.7 2.7 2.7 2.7 2.7 Intangible assets 0.9 1.2 1.2 0.9 0.7 Retained earnings -116.3 -1
Slide 10: DCF calculation
DCF calculation DCF model 2022 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e 2031e 2032e 2033e 2034e Revenue growth-% 0.0 % 0.0 % 0.0 % 226120.6 % 168.4 % 45.6 % 53.4 % 28.2 % 20.6 % 8.1 % 7.9 % 4.1 % 4.1 % EBIT-% -685650.0 % -394523.5 % -76864.0 % -19.6 % 19.9 % 44.6 % 62.9 % 69.8 % 74.1 % 75.2 %
Slide 11: Summary
Summary Income statement 2020 2021 2022 2023e 2024e Per share data 2020 2021 2022 2023e 2024e Revenue 0.0 0.0 0.0 0.0 0.0 EPS (reported) -0.36 -0.40 -0.48 -0.25 -0.02 EBITDA -16.4 -20.8 -27.4 -15.6 -0.8 EPS (adj.) -0.36 -0.40 -0.48 -0.25 -0.02 EBIT -16.7 -21.1 -27.4 -15.8 -1.1 OCF / share -0.36 -0.4
Slide 12: Disclaimer and recommendation history
Disclaimer and recommendation history Recommendation history (>12 mo) Date Recommendation Target price Share price The information presented in Inderes reports is obtained from several Buy The 12-month risk-adjusted expected shareholder 08-08-22 Accumulate 2.80 € 2.44 € different public sources that
Slide 13: Inderes connects investors and listed companies
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Slide 14: Research belongs to everyone.
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Faron Pharmaceuticals — H2 2022 Earnings Presentation on 6ix