Acacia Pharma


€209m market cap

€3.08 last close

Acacia Pharma is a hospital pharmaceutical company focused on the development and commercialisation of new products for surgical and cancer patients. It has two assets: BARHEMSYS (approved for the treatment of PONV in the US) and in-licensed asset ByFavo (sedative/anaesthetic).

Investment summary

Acacia Pharma has announced an amendment to its original deal terms with Cosmo Pharmaceuticals, whereby €10m of the agreed loan facility (up to €35m, of which €25m is contingent on ByFavo approval) will be swapped for a €10m equity stake (through the issue of 3,213,769 shares at €3.112, a 4.1% premium to the previous day’s closing price). This will take Cosmos’s holding of Acacia’s enlarged share capital to ~18.5%. This is a positive signal and, importantly, lowers the interest payments on debt. 2020 is an inflection year – the FDA approved BARHEMSYS (reformulated amisulpride) for the management of PONV on 26 February and the ByFavo PDUFA data for procedural sedation is imminent (5 July). Our forecasts remain unchanged as we anticipate an increase in elective surgical procedures in the second half of the year and drug shortages to affect uptake of these short-acting products designed to reduce hospitalisation times. Timely approval and launch are thus critical. We value Acacia at €992.1m or €14.6/share.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 0.0 (20.0) (21.6) (46.93) N/A N/A
2019A 0.0 (22.4) (23.5) (42.55) N/A N/A
2020E 2.1 (32.1) (34.3) (49.64) N/A N/A
2021E 28.8 (38.0) (40.2) (58.20) 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 05/06/2020
Share price graph
Balance sheet
Forecast net cash (US$m) 32.9
Forecast gearing ratio (%) N/A
Price performance
Actual 25.7 (1.3) 105.3
Relative* 7.6 3.0 105.8
52-week high/low €3.6/€1.3
*% relative to local index
Key management
Michael Bolinder CEO
Christine Soden CFO