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I'd happily accept shares for my CVR's.(assuming approval)
Cannacord Genuity's 3 star analyst has a $40 price target.
I'd love to hear more about that Anorexia mini trial
gameangler,
Exactly, CVRs are a way of recognising potential when the outcome isn't certain. If they had simply issued extra shares to Amryt holders and Filsuvez had gone on to fail then that wouldn't have been fair to Aegerion holders. I understand where you're coming from joxer, but I think in these particular circumstances CVRs work well. Also don't forget that if Filsuvez is approved then Amryt receive that Priority Voucher which based on the last one to hit the market is probably worth around £100m - all purely down to Filsuvez.
Joker
Shares could probably not be issued at the time, because the CVR terms have to be satisfied, to release the benefits.
The Company reserved the rights to pay out the benefits in future by the issue of shares or Loan Notes.
https://www.investegate.co.uk/amryt-pharma-plc--amyt-/rns/publication-of-admission-document-and-circular/201908271300012852K/
Thanks Bermuda. I just wonder if they could have done it some other way e.g. a share issue to the existing shareholders at that time. I know this would have caused dilution but I think that the potential cash payout of up to $85M is not the best use of capital - however, as I am going to (hopefully) benefit from it I'm not complaining!
joxer,
The reasoning behind it was that Amryt paid for Aegerion with Amryt stock. However, the equity was issued at a price that obviously was much lower than if Filsuvez had already been approved by the FDA/EMA - in other words, the valuation didn't reflect the potential value of Filsuvez as a commercial, approved product. In effect, this meant that having funded the development of the product, original Amryt shareholders faced losing a share of the potential to Aegerion shareholders and the CVRs were a way of compensating original Amryt holders for this loss of potential. The CVRs ensured the structure of the deal for the Aegerion acquisition was fair to Amryt holders.
If they simply reinvested the same cash in the business then the whole of the new enlarged shareholder base (including Aegerion holders) would benefit.
I still cannot understand the logic of why AMYT decided to issue the various CVRs. Growth companies generally re-invest any profits or surplus funds in the business instead of paying out valuable cash in the form of dividends, which is essentially what the CVRs are. It just seems like a very inefficient way of utilizing cash in a fast growing business
If this is a weed then I love a dandelion
Technically, a simile.
Might be an appropriate analogy, except that the majority associate weeds with being a nuisance - and needing to be removed.
Joe Wiley:-
"We're a biotech that makes money, we're growing like a weed"
Not too many of those around on AIM.
I am new to this company, but it seem to be hated by the market and trades poorly even tho results progress seems good. Why is the stock not getting any love?
Joxer, Thanks for the update - quite a slick operation is our AMRYT.
The conference call was very positive and although they could not give any specific replies to questions about the PDUFA it appears that things are proceeding as expected.
.......closely followed by EMA decision
https://www.irishtimes.com/business/health-pharma/irish-pharma-group-amryt-reports-15-revenue-growth-for-third-quarter-1.4718161
Yet another good-news RNS: this company continues to execute its strategy - on time and to plan; at some point, the market will notice, and significantly rerate it - starting with the FDA approval, due on November 30th.
I’m sure we can all wait for a couple more weeks.
The PDUFA date is Nov 30. This is the expected date for a decision. I believe FDA meets around 90% of these targets.
This month?
Over 500k shares traded on the London stock exchange not reported here.
https://www.londonstockexchange.com/stock/AMYT/amryt-pharma-plc/company-page
Same pattern as the last few days on nasdaq yesterday with large trades towards the end of the session, however these were mostly sells.
Still selling down a bit today, however the individual trades are all small retail volumes. Will be interesting to see if there are any larger institutional buys later in the session as happened on Friday
About double the usual volume on Nasdaq on Friday. After an initial sell off in the morning most of the afternoon trades were positive with a few large buys propping up the sp. Somewhat surprising that this stock is not trading higher in anticipation of the PDUFA date.
Very good spot!
Obviously, randomised trials would be required to expand the label but given the difficulty in treating eating disorders, it's possible that an off-label approach from specialist doctors/centers might emerge as these treatment experiences are socialized.
Hopefully we'll get an RNS on Monday morning :-)
Really interesting research here from Prof. Hebebrand, University of Duisburg-Essen - to be presented at a conference tomorrow.
Based on the fact that the hormone leptin is the major endocrine signal for starvation, he prescribed Amryt's Metreleptin (MYalept/Myalepta) off-label to 11 patients suffering from Anerexia Nervosa with what appear to be very encouraging results:-
'We observed a rapid onset of beneficial effects on AN specific cognitions, emotions and behaviors.'
'The seemingly strong psychopharmacological effects of metreleptin warrant further investigation.'
Clearly clinical trials are required but would be fantastic if Metreleptin has a role to play in helping patients battle AN.
https://www.chumontreal.qc.ca/en/crchum/nouvelles/rapid-and-pronounced-clinical-improvement-patients-anorexia-nervosa-upon-treatment-human