Northland Capital 79p Target Price on Evgen Pharma PLC, currently 27.5p

Northland Capital partners view on Evgen Pharma PLC: Evgen’s core technology allows for the production of a stable version of sulforaphane, a potential treatment for various conditions, including several cancers and neurological disorders. To date, despite considerable evidence supporting sulforaphane’s therapeutic properties, issues surrounding the drug’s stability, storage and delivery have hindered its development. Thanks to Evgen’s patented Sulforadex® technology platform, the company is well positioned to unlock the medical and commercial potential of this promising drug.

We initiate coverage of Evgen Pharma plc with a 79p Target Price
n  Lower-risk molecule: a growing body of academic research has shown sulforaphane to have an effect in the treatment of several cancers and neurological disorders

n  Unlocking sulforaphane’s potential: Evgen’s core technology, Sulforadex®, allows for the production of a synthetic and stable version of the compound, unlocking the medical and commercial potential of the drug

n  Locking down the use of sulforaphane: Evgen is positioning itself to become the world’s unique provider of sulforaphane and sulforaphane-like pharmaceuticals

n  Valuation: peer group analysis indicates a 79p Target Price, with considerable opportunity for further upside

Year end Dec Revs ($m) Adj. EBITDA ($m) Adj. PBT ($m) Tax (%) Adj. EPS (c) PER (x) Div (c) Net cash ($m) Yield (%)
2012A -1,168,000 -2,233,000 -900,000
2016E -4,092,800 -3,500,000 -4.8 5,370,200
2017E -2,993,520 -3,000,000 -4.12 2,476,680
2018E 5,000,000 1,405,832 1,400,000 1.69 16.3 3,992,512

Source: Northland Capital Partners Limited.

 

 

 

Research Disclosures:

       
Company Ticker Applicable disclosures  
Evgen Pharma EVG.L 1,3,5  
 
 

1.             Northland Capital Partners Limited (‘Northland’) acts as Nominated Advisor and/or Broker to the company.

 

2.             Northland and or its affiliates, holds 1% or more of the Company’s equity shares.

 

3.             Northland and or its affiliates, holds options or warrants in the Company which on conversion would represent 1% or more of the Company’s equity shares.

 

4.             The authoring analyst or any associate of the authoring analyst has a long or short position in the Company’s securities held directly, or through derivatives.

 

5.             Northland acts as corporate finance adviser and/or provides investment banking or research services to the Company for which it receives compensation.

 

6.            A partner, director, officer, employee or agent of Northland is an officer, director, partner, employee or agent of the Company.

 

Research Disclaimer

       
  Northland Capital Partners Limited (‘Northland’ or ‘the Firm’) is authorised and regulated by the Financial Conduct Authority (‘FCA’) and is a member of the London Stock Exchange.

 

The Firm’s research reports/communications are non-independent ‘marketing communications’, such term as defined in the Rules of the FCA. Marketing communications are not prepared in accordance with the FCA’s Rules on independent investment research and are not subject to any prohibition on dealing ahead of their dissemination. Northland’s ‘Conflicts Management Policy’ includes details of potential conflicts concerning its research activities and is available on its website: www.northlandcp.co.uk.  Company specific conflicts disclosures are included in each relevant communication made by Northland. The Firm and/or its officers, directors and employees may have, or take positions in securities of companies mentioned in its research communications (or in any related investment) and may from time to time dispose of any such positions.

 

Northland’s research communications are not intended for and should not be relied upon by ‘Retail Clients’ (such term as defined in the FCA Rules).  The Firm’s research communications (‘communications’) are provided for information purposes only and on the understanding that Northland is not acting in a fiduciary capacity, nor is it making a personal recommendation and should not be regarded as an offer or solicitation to buy or sell any security or other financial instrument. Northland’s communications have no regard to the specific investment objectives, financial situation and needs of any specific person or entity.  If in any doubt, investors should seek advice from a suitable investment advisor.  The Firm’s communications are based on materials and sources that it believes to be reliable; however, they are not independently verified.  No representation or warranty either expressed or implied, is made and no responsibility is accepted by Northland as to the accuracy or completeness of any information contained in its research communications, nor should it be relied on as such.  Opinions and estimates in its research communications are subject to change without notice and Northland is under no obligation to update such opinions and estimates. The Firm shall not be liable for any direct or indirect damages, including lost profits, arising in any way from use of all or any of the information contained in its research communications.  Northland may have issued other reports or documents that are inconsistent with and reach different conclusions from, the information contained in its research communications. Those documents reflect the different assumptions, views and analytical methods of the individuals who prepared them.

 

Northland’s research communications are produced in accordance with UK laws and regulations and its communications are not directed at or otherwise intended for any person whose nationality or residence may render receipt of such communications unlawful or in breach of any relevant regulations.  Northland’s research communications are for the use of: (a) Professional Clients and ‘Institutions’ (such terms as defined in the FCA Rules); (b) other persons who have expressed interest in receiving communications and who are investment professionals (persons having professional experience in matters relating to investments, as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended)); and (c) any other persons to whom communications for the purposes of section 21 of the Financial Services and Markets Act 2000 can otherwise lawfully be communicated.  Northland’s research communications may not be re-distributed, retransmitted or disclosed, in whole or in part, or in any manner, without the prior express written consent of Northland.

 

© Northland Capital Partners Limited 2015

 

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    X
    LinkedIn
    Evgen Pharma Plc

    More articles like this

    Evgen Pharma Plc

    21 Health Benefits of Broccoli

    Are you looking for a vegetable to spice up your diet in a healthy way? If yes, then broccoli, also called Brassica oleracea italica, is the vegetable you want. The dark green crucifer is not only

    Evgen Pharma Plc

    12 things that are actually tied to breast cancer

    According to the Centres for Disease Control and Prevention (CDC), breast cancer is the most common cancer in women. In the US, one in eight women will develop breast cancer during her lifetime. Those statistics sound

    Evgen Pharma Plc

    10 subtle signs of breast cancer

    A diagnosis of breast cancer can be terrifying. According to the CDC, Breast cancer is the most common cancer in American women of any race or ethnicity. Though the statistics might be scary, catching breast cancer

    Evgen Pharma Plc

    Evgen Pharma plc Investor Presentation in Manchester

    Evgen Pharma plc (LON: EVG), a clinical stage drug development company focused on the treatment of cancer and neurological conditions, announces that Steve Franklin, the Company’s CEO, will be presenting tomorrow evening at a ShareSoc Growth

    Evgen Pharma Plc

    ‘I never knew men could get breast cancer’

    Moses Musonga never thought men could get breast cancer until he was diagnosed with the disease in 2013. The 67-year-old Kenyan told the BBC that he was profoundly shock when doctors told him in 2013 that

    Evgen Pharma Plc

    Male Breast cancer:What are the signs and how to check?

    Breast cancer is more commonly associated with women more than with men, affecting approximately one in eight women in their lifetimes. However, men can still be diagnosed with breast cancer, albeit in far rarer circumstances. While