Acacia Pharma

EU: ACPH

€196.4m market cap

€3.08 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

Acacia Pharma has announced a deal with Cosmo Pharmaceuticals to acquire the US rights to sedative ByFavo (remimazolam). This is a multi-faceted deal – the addition of ByFavo broadens Acacia’s US commercial pipeline beyond key asset BARHEMSYS (post-operative nausea and vomiting (PONV)). Both assets are under FDA review, with imminent PDUFA dates (BARHEMSYS 26 February, ByFavo 5 April) and potential US launch during H220. Critically, Cosmo’s equity investment of €10m plus access to loan facilities (up to $35m) for Acacia bridges its short-term funding gap, enabling it to expand its much-needed US commercial infrastructure to support both product launches. Management changes continue; as CFO Christine Soden is set to retire, the board has appointed Gary Gemignani as successor. We value Acacia at €882m or €13.8/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 13/02/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (£m) 5.6
Forecast gearing ratio (%) 0
Price performance
%
1m
3m
12m
Actual 5.2 68.0 104.1
Relative* 0.2 55.7 72.5
52-week high/low €4.0/€1.3
*% relative to local index
Key management
Michael Bolinder CEO
Christine Soden CFO