Bit old but good synopsis.4 Dec 2016 09:56
3 reasons I Bought More Shares in Amryt Pharma (AMYT) This Week
Current Share Price: 14.75p
Market Cap: £30.73m
Share in Issue: 208m (approximately 65% are held by shareholder with 3% or more).
Cash: €12.6m (or £10.75m, as of 31st December 2015)
About Amryt Pharma
AMYT
Amryt Pharma was admitted to AIM on 19th April 2016 following the reverse takeover of Fastnet Equity (FAST).
Amryt’s lead product, Episalvan®, received marketing approval for the treatment of partial-thickness wounds from the European Commission in January 2016. Amryt intends to further develop Episalvan® as a new treatment for a hereditary skin disorder called Epidermolysis Bullosa in both Europe and the U.S.
Amryt’s earlier stage products are focussed on developing novel, next generation somatostatin analogue (“SSA”) peptide medicines for patients with rare neuroendocrine diseases, where there is high unmet medical needs. These include acromegaly and Cushing’s disease.
3 reasons I Bought More Shares in Amryt Pharma (AMYT) This Week
1. The Share Price
AMYT CHART
Amryt’s share price is at an all time low.
When Amryt Pharma was admitted to AIM following the takeover of Fastnet Equity, they raised £10m at 24p. The share price is currently 14p. This is post consolidation, of 1 for 8 shares, so this would’ve been 1.84p when it was Fastnet Equity.You couldn’t have bought Fastnet shares at 1.84p and remember, this was when it was a failing oil & gas explorer/ producer.
Now as Amryt Pharma, they’ve acquired two drug assets, Episalvan from Birken a relatively de-risked asset targeted at a rare childhood disease that causes severe skin conditions and AP102 from Som which is focused on acromegaly/Cushing’s disease. Plus they have £10m in cash (as of 31st December 2015) and a very experienced board of directors with a clear strategy.
Their strategy is to acquire and develop more orphan drug assets that target significant commercial opportunities to create a Specialty Pharma company. The acquisitions of Birken and Som are the first steps in delivering this strategy and others are likely to follow as and when appropriate.
Amryt has an EV of £22m compared to six quoted peers trading on a range of £48m (Phase 1 assets) to £1,608m (Phase III). This seems to suggest that there is considerable upside potential in Amryt’s Phase II/III assets. Mergers and acquisitions activity also underline the fact that Amryt is undervalued. M&A activity for similar assets are in the range $97-$842m.
2. Potential
Penny Stock Potential
Episalvan, acquired from Birken has been awarded orphan drug designation (ODD) in the US and the EU for EB, and the market for this indication alone is estimated to be US$1.5bn.
Orphan designation often means the product can be fast-tracked – usually at a fraction of the cost of developing medication