Marinomed reported slightly weaker Q1/2019 revenues than we had anticipated, due largely to temporarily weaker demand for the marketed Carragelose products (colds and flu infections) in two core markets, Germany and Poland. Nevertheless, we believe that our projections for FY2019E remain achievable, since: (1) most other markets delivered positive sales performance, (2) Q1 has traditionally been a weaker quarter due to seasonality, with demand for Marinomed's products usually much stronger in H2, and (3) additional launches are planned to take place in the coming months. Importantly, lead pipeline asset and key value driver Budesolv (dissolved budesonide), which recently met key endpoints in the registrational Phase III trial in allergic rhinitis ("AR", hay fever), remains on track for submission in 2020E, paving the way for launch in 2021E. We maintain and reiterate our OUTPERFORM recommendation and €103 target price ("TP").
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Q1 masks solid sales performance in most markets
- Published:
29 May 2019 -
Author:
Brigitte de Lima, PHD CFA -
Pages:
5
Marinomed reported slightly weaker Q1/2019 revenues than we had anticipated, due largely to temporarily weaker demand for the marketed Carragelose products (colds and flu infections) in two core markets, Germany and Poland. Nevertheless, we believe that our projections for FY2019E remain achievable, since: (1) most other markets delivered positive sales performance, (2) Q1 has traditionally been a weaker quarter due to seasonality, with demand for Marinomed's products usually much stronger in H2, and (3) additional launches are planned to take place in the coming months. Importantly, lead pipeline asset and key value driver Budesolv (dissolved budesonide), which recently met key endpoints in the registrational Phase III trial in allergic rhinitis ("AR", hay fever), remains on track for submission in 2020E, paving the way for launch in 2021E. We maintain and reiterate our OUTPERFORM recommendation and €103 target price ("TP").