Friday, December 3

Brokers lose faith in Pharmamar’s potential


The punishment of the shareholders to the titles of Pharmamar After the presentation of results, it is accompanied by a drop in target prices by brokers who follow more closely the business and stock market performance of the ‘biotech’.

The biggest blow he has dealt Oddo BHF with a reduction of 23 percent, to 73.80 euros, below the price of the panel of experts that Bloomberg collects, located at 99.99 euros, and with a recommendation of “neutral”.

The analyst of the firm in charge of Pharmamar, Isabel Carballo, has not only criticized the figures presented in the third quarter, but also cut its estimate of earnings per share (EPS).

Sales “weakness”

Oak speaks of “weakness” in the accounts due to some royalty figures for Zepzelca “lower than expected” and “weak” sales in Yondelis, without forgetting Aplidin.

The clinical development of Zepzelca is slower than expected and the arrival of positive results from Merck in their treatment against Covid-19 they reduce the attractiveness of Pharmamar with Aplidin ”, comments Carballo. Therefore, it reduces its EPS forecast by between 30 percent and 50 percent for the period 2021-2023.

Intermoney is another of the houses that has cut the path of the titles, 11 percent to 90 euros per share, also below the market consensus and advice to “retain”, and Alantra, with a “sell” recommendation, registers a cut of 7 percent, to 64.50 euros, the lowest 12-month price of the entire market consensus.

Finanzas.com He noted that Pharmamar’s profits will stagnate quarter by quarter as sales deflate. In this sense, the department of analysis of Bankinter, also affects the fact that recurring sales “They are decreasing throughout 2021.”

Forecast dance for Zepzelca

While waiting for new events, they describe Pharmamar’s year as a “transition” and although current prices suggest “share value”, Bankinter does not see “short-term catalysts”. Thus, prefer to wait for the evolution of Zepzelca.

And it is that in this drug against small cell lung cancer all expectations are placed for a more promising future of the company since currently the sales royalties for the agreement for the USA with Jazz Pharmaceuticals and sales of the product as compassionate use in Europe grow below expectations.

The group of Galician origin expects to achieve full sales marketing in the United States in early 2022. On the other hand, Bankinter believes that this will not arrive until the end of that year due to the evolution of the study that confirms its effectiveness.

More pressure in Europe

EThis would delay the sales request in Europe for a year since the plans of the company commanded by José María Fernández Sousa for this antitumor in the Old Continent are to achieve commercialization one year later than in the United States.

However, shareholders return Pharmamar to its stock market status prior to the announcement in April 2020 that Aplidin could be effective against the coronavirus and the evolution of Zepzelca and Yondelis, its longest-lived drug in the portfolio, has not been enough to cut the sangria or that volatility was not the protagonist, leading the company to a market capitalization of 1,100 million from the more than 2,000 of the summer of 2020.

There is also room for supports and the broker RX Securities becomes a ‘rare bird’ within the consensus by qualifying the latest results presented as “Solid” by exceeding your expectations, although he acknowledges that revenues are also lower than his estimates.



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