Acacia Pharma

EU: ACPH

€182.4m market cap

€2.91 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.

Investment summary

The US FDA has approved Acacia Pharma’s lead asset, BARHEMSYS (reformulated amisulpride), for the management of post-operative nausea and vomiting (PONV). Rescue treatment for PONV is an unmet need. Acacia plans to launch BARHEMSYS in H220 and management has been slowly building up its US commercial operations. It now has 30 personnel in the US spanning six regional teams. With short-term funding secured through the ByFavo in-licence deal with Cosmo Pharmaceuticals, Acacia plans to recruit further key personnel required to support the product’s launch in H220. Importantly, the FDA has granted BARHEMSYS a broad label in PONV. Combined with economic saving data, this should support broad hospital formulary access. Our increased valuation is €15.2/share.

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 (23.2) (23.1) (0.44) N/A N/A
2020E 1.8 (24.9) (27.3) (0.40) N/A N/A
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 26/02/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (£m) 5.6
Forecast gearing ratio (%) 0
Price performance
%
1m
3m
12m
Actual 1.8 61.1 47.9
Relative* (0.8) 52.4 29.9
52-week high/low €4.0/€1.3
*% relative to local index
Key management
Michael Bolinder CEO
Christine Soden CFO