Västra Hamnen: Magle Chemoswed - Looking up
Västra Hamnen Corporate Finance has released a research update on Magle Chemoswed following the company's report for Q2 2021. The PharmaCept acquisition, looming product launches and an improved gross margin combine to justify an increase of our valuation interval to SEK 46.60 - 62.80 per share, writes Västra Hamnen.
- CDMO business developing strongly
- Impact of PharmaCept acquisition visible in H2 2021
- We raise our valuation interval to SEK 46.60 – 62.80 (42.70 – 57.30) per share
Magle Chemoswed reported a net profit of SEK 0.8 million for Q2 2021, almost exactly in line with our forecast. Net revenues were somewhat below our forecast at SEK 33.5 million, but a higher-than-expected operating margin made up for this. Adjusted for an unpredictable royalty stream, revenues showed a healthy recovery from the setback triggered by COVID-19 last year. Our scenario of rising profits in the coming quarters is therefore strengthened, supported by the expected revenue boost from the acquisition of PharmaCept, looming product launches and a higher expected gross margin. We raise our valuation interval to SEK 46.60 – 62.80 per share.
The full report is available here.
The research report is prepared as part of Market Focus, Västra Hamnen Corporate Finance's commissioned research offering.