Acacia Pharma

EU: ACPH

€99m market cap

€1.85 last close

Acacia Pharma is a hospital pharmaceutical company focused on the development and commercialisation of new nausea and vomiting treatments for surgical and cancer patients. Its main product, BARHEMSYS, is for the treatment of PONV and is forecast to launch in 2019.

Investment summary

Acacia’s interim results highlight the group’s focus on commercialising key asset BARHEMSYS in the US market during 2020. With a new CMO qualified, management plans to resubmit its new drug application (NDA) to the US FDA before end September. If the FDA deems it a Class 2 resubmission, a new PDUFA date would fall in Q120, enabling a launch in H120. The US sales team is positioning itself for a prompt launch. Managing cash burn during the intervening period is essential as we forecast that c £40m will need to be raised in H120 (following approval) to fund operations, with additional future funding dependent on sales execution. With Acacia’s commercial focus concentrated on the US, it has changed its presentation currency from GBP to US$. We will reflect this in our financial model in due course, but retain our previous forecasts (GBP denominated) and valuation of €631m in the interim.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 0.0 (3.0) (6.5) (2.32) N/A N/A
2018A 0.0 (15.0) (16.2) (0.35) N/A N/A
2019E 0.0 (14.6) (16.8) (0.30) N/A N/A
2020E 1.1 (45.6) (48.3) (0.88) N/A N/A
Last updated on 13/09/2019
Industry outlook

Inadequately treated PONV leads to prolonged stays in post-anaesthesia care unit recovery rooms. Use of BARHEMSYS could reduce patient hospitalisation time and the associated costs.

Last updated on 13/09/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (£m) 5.6
Forecast gearing ratio (%) 0
Price performance
%
1m
3m
12m
Actual 2.9 26.0 (51.6)
Relative* (2.9) 17.9 (52.1)
52-week high/low €4.0/€1.2
*% relative to local index
Key management
Michael Bolinder CEO
Christine Soden CFO