Rare Gem / Mispriced?28 May 2025 09:28
Berenberg Research Note…extraxct.
VALUATION
Solvonis is not just undervalued — it is fundamentally mispriced relative to clinical data, peer valuations, and market potential.
1. Base Case (50% peer discount): £40m market cap (5x upside).
2. Bull Case (peer parity): £80m+ (10x upside).
3. Buyout Scenario (Big Pharma acquisition): £100m+ (13x upside).
Thus, for investors willing to look beyond the market's myopia, Solvonis represents a highly asymmetric bet — limited downside at £7.7m, exponential upside as new market participants snap-up shares; as pipeline progress | partnership | Big Pharma deal | market exclusivity news breaks; and as the market corrects the mispricing of the company's shares.
Of course, Big Pharma may decide to ruin all the fun by capitalising on the mispricing and buying out Solvonis on the cheap. Who knows?
But regardless, the sheer disparity between Solvonis' valuation and its peers cannot persist indefinitely. Consequently, when the gap closes, the revaluation will be rapid and material.