We have updated our Vicore model for the acquisition of INIM Pharma and Q2 results. We maintain and reiterate both our target price of SEK43 and OUTPERFORM recommendation, based on our view that Vicore's lead asset VP01 (C21) in Phase IIa for idiopathic pulmonary fibrosis ("IPF") has the potential to reach peak sales of c.$1.4bn by 2030E following regulatory approval in 2023E. INIM adds a promising preclinical asset, the IMiD ("immunomodulatory imide drugs") technology to develop local treatments for severe interstitial lung disease. The initial focus will be on IPFrelated cough, with a Phase I trial expected to start in 2019. Although promising, we believe it is premature to include the asset in our valuation, which currently consists of C21 revenues in IPF and net cash at YE2018E only.
