Mrkt BUZZ Pharmiva: New CEO Appointed

Read the full comment below.

Mrkt BUZZ Pharmiva 4 april 2022 Eng

Carlsquare Equity Research welcomes the appointment of Anna Linton (formerly Unimedic/MedCap) as the new CEO of Pharmiva. We see it as an essential step to strengthen the company’s ability to launch internationally. The news should support interest in the ongoing issue via TO3 warrants (subscription price SEK 5.72), which run until 8 April.

New Qualified CEO Appointed

Pharmiva announces that Anna Linton has been appointed as the new CEO to succeed Christina Östberg Lloyd, who announced her resignation in November 2021. Linton most recently comes from a similar position at Unimedic Group, which is part of listed MedCap. Unimedic Group had a turnover of SEK 317 million in 2021 and develops and distributes specialist pharmaceuticals and is also a contract manufacturer of pharmaceuticals. Since 2018, Unimedic’s EBITDA margin has tripled. Anna Linton has also previously been CEO of, among others, the medical device company Grunenthal’s Nordic operations when the company underwent a successful turnaround. She will take up the position on 8 August.

We are pleasantly surprised by the recruitment of a person with extensive experience and a solid track record in pharmaceutical sales and the development and optimisation of distribution chains. Unimedic focuses on the Nordic business, but the company also has small sales in the rest of Europe. We guess that formulating a strategy for the launch of Vernivia outside Sweden will be high on the new CEO’s priority list. We are not making any changes to our estimates at this stage but emphasise that the timing and design of the international launch significantly impact our forecasts and valuation of the company.

The Subscription Period for TO3 Ends on 8 April

Overall, we believe it is a good signal that the CEO issue is now resolved. Currently, the exercise period for TO3 warrants is running, with each warrant entitling the holder to subscribe for one share for SEK 5.72 per share, which is about 25 per cent lower than the current price of the Pharmiva share. The last day to subscribe for shares via TO3 is April 8. If fully subscribed, Pharmiva will receive SEK 6.2 million before issue costs. Pharmiva has entered into a top-down guarantee of SEK 3.1 million, which means that the warrants will be fully exercised provided that the subscription rate is at least 50 per cent.

Please also read our Initiation analysis from 25 January 2022 here. We calculate a fair value of SEK 18.2 per share in a base case scenario.

Disclaimer

Carlsquare AB, www.carlsquare.se, hereinafter referred to as Carlsquare, conducts business with regard to Corporate Finance and Equity Research in which areas it, among other things, publishes information about companies, including analyzes. The information has been compiled from sources that Carlsquare considers to be reliable. However, Carlsquare cannot guarantee the accuracy of the information. Nothing written in the analysis should be regarded as a recommendation or invitation to invest in any financial instrument, option, or the like. Opinions and conclusions expressed in the analysis are intended only for the recipient.

The content may not be copied, reproduced, or distributed to another person without the written approval of Carlsquare. Carlsquare shall not be held responsible for any direct or indirect damage caused by decisions made on the basis of information contained in this analysis. Investments in financial instruments provide opportunities for value increases and profits. All such investments are also subject to risks. Risks vary between different types of financial instruments and combinations of these. Historical returns should not be considered as an indication of future returns.

The analysis is not directed to U.S. persons (as defined in Regulation S of the United States Securities Act and interpreted in the United States Investment Company Act 1940), nor may it be disseminated to such persons. The analysis is also not directed to such natural and legal persons where the distribution of the analysis to such persons would result in or entail a risk of a violation of Swedish or foreign law or constitution.

The analysis is a so-called Commissioned Research Report where the analyzed Company has signed an agreement with Carlsquare for analysis coverage. The analyses are published ongoing during the contract period and for a usually fixed remuneration.

Carlsquare may or may not have a financial interest in the subject of this analysis. Carlsquare values the assurance of objectivity and independence and has established procedures for managing conflicts of interest for this purpose.

The analysts Niklas Elmhammer, Ulf Boberg and Jonatan Andersson do not own and are not allowed to own shares in the Company analyzed.