ADL Bionatur Solutions

SP: BNT

€81.9m market cap

€2.08 last close

Based in Spain, ADL Bionatur Solutions provides contract manufacturing of fermentation-based biochem products and antibiotics, and develops and licenses its own portfolio of OTC and prescription animal health products, including probiotics and vaccines.

Investment summary

ADL Bionatur Solutions (ADL-BS) was formed through the reverse takeover in April 2018 of contract manufacturing (CMO) and active pharmaceutical ingredient (API) producing firm ADL Biopharma (ADL) and Bionaturis (BNT), a developer of differentiated veterinary biotech products. We estimate the ADL unit’s solid pipeline of existing CMO contracts will contribute to the unit’s generation of at least €55m in 2019 revenue (vs €12m in 2017). We determine an EV valuation of €138.8m, which translates to an equity valuation of €93.4m, or €2.37 per share, after removing €45.4m in Q418e net debt (including a €7.0m loan from its majority shareholder).

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2016A N/A N/A N/A N/A N/A N/A
2017A 14.6 (10.4) (13.7) (64.2) N/A N/A
2018E 27.8 (9.2) (13.3) (35.5) N/A N/A
2019E 64.8 5.7 1.2 3.1 67.1 48.5
Last updated on 18/02/2019
Industry outlook

We estimate the ADL unit’s solid pipeline of existing CMO contracts will contribute to the unit’s generation of at least €55m in 2019 revenue (vs €12m in 2017). ADL-BS reported H118 net debt of €41.2m, and we estimate year-end 2018 net debt of approximately €45.4m (including a €7.0m loan from its majority shareholder).

Last updated on 18/02/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (€m) 45.4
Forecast gearing ratio (%) 180
Price performance
%
1m
3m
12m
Actual 7.2 12.4 (3.7)
Relative* 6.2 11.2 3.4
52-week high/low €3.3/€1.6
*% relative to local index
Key management
Pilar de la Huerta CEO