Enzymatica
Enzymatica - COVID-19 tailwinds are boosting demand (ABG Sundal Collier)
2020-03-27 17:42
COVID-19 set to double y-o-y sales growth in Q1’20
Longer term uncertainty on demand and supply chain
Trading at EV/Sales 7.4x ‘20e on 95% sales growth ‘20e
The COVID-19 pandemic has increased ColdZyme demandEnzymatica announced that the ongoing COVID-19 pandemic has caused a strong increase in demand for its cold spray ColdZyme in March. This trend is expected to continue in the coming months. The current order-book and sales for Q1’20 indicate a 100% y-o-y sales growth, implying sales of SEK 26.6m in Q1’20 (+10.5% vs. ABGSCe SEK 24m). No further details were provided in terms of profitability. The company also announced that the production of ColdZyme with its contract manufacturers has proceeded without interruptions. Furthermore, Enzymatica does not have any ongoing clinical trials that could risk delays from the COVID-19 situation.
Longer term developments currently uncertain
We note that there are no clinical studies supporting the efficacy of ColdZyme deactivating SARS-CoV-2 (virus causing COVID-19). Enzymatica highlights that there is great uncertainty when it comes to the continued development of demand and its effect on production and logistics, which may affect the company's order-intake and sales. The company is currently engaging in regulatory proceedings in Japan (expected market launch in late 2021) and China (expected market launch in 2022). We do not know how the ongoing pandemic might impact these regulatory developments.
We raise our estimates to reflect solid demand development
To reflect the sharp increase in demand for ColdZyme, we raise our sales estimates for Q1’20e by 11%, which increases our sales estimate for ‘20e by 2.2%. We leave our sales estimates for the remaining quarters unchanged as we believe our 95% y-o-y sales growth for ‘20e captures the solid demand development. However, we raise our gross margin assumptions for ‘20e-‘22e by ~1.5% to reflect a more favourable pricing environment in light of increasing demand.
- Läs mer på Introduce
Läsaren av innehållet kan anta att ABG Sundal Collier har erhållit eller kommer att erhålla betalning för utförandet av finansiella företagstjänster från bolaget. Ersättningen är på förhand avtalad och är inte beroende av innehållet.
info@introduce.se (Introduce.se)
ABG Sundal Collier - Introduce.se