04.02.2015 - Equity Research Einzelstudie // kaufen

Research Note – Sygnis AG - buy

pdf For the original study, please click here
Unternehmen: SYGNIS AG
Branche: Biotechnologie-Pharma
Rating: kaufen
Kurs bei Erstellung in €: 20.01.2015; 2,20
Kursziel in €: 4,05
Mögl. Interessenskonflikt gem. §34b Abs.1 WpHG und FinAnv: 4;5;7

TruePrime™ global launch announced; further launches based on TruePrime™ technology are in the pipeline; forecasts and BUY rating confirmed with a target price of €4.05.

Sales of the SYGNIS product pipeline are being expanded to include self-marketing. While marketing activities have previously focussed on outlicensing the product pipeline, in the future the emphasis will be on self-marketing (also see study dated 19/11/2014). The plan is to make more intensive use of marketing potential and reduce the reliance on licensing partners. Furthermore, within the framework of the new strategy, the entire earnings contribution accrues to SYGNIS AG (when outlicensing, the licensing partner only pays the licence contribution).

Self-marketing will start with the sales launch of the TruePrime™ Single Cell WGA KIT, the first product from the TruePrime™ product range for whole genome amplification from single cells. This is based on Multiple Displacement Amplification (MDA) technology, which requires only a small initial quantity of DNA for reading and reproduction. The SYGNIS TruePrime™ product range has featured the further development of this technology, as a result of which so-called primers (which establish the specific section of DNA to be amplified) are no longer needed for the amplification of DNA. According to the company’s own data, the first tests with potential clients have been successfully completed, revealing both a high level of acceptance as well as high revenue potential. Alongside the initiated self-marketing of the TruePrime™ kit, in December 2014 a non-exclusive agreement was signed with BioCat GmbH of Heidelberg, in order to benefit from their specialised client network. SYGNIS AG has also signed a distribution agreement with bioNova cientifica s.l. to sell the TruePrime™ kit in Spain.

We believe that this has cleared the way to achieve positive net income in the 2016 financial year. What’s more, the financial situation saw a marked improvement in late 2014 with the full placement of a capital increase (gross inflow of €4.95 million). In this context, we believe that the current financial basis is sufficient for the further development of TruePrime™ kits and for accelerating the company’s own sales. Further launches based on TruePrime™ technology are planned for the short term.

On this basis, we see our revenue and earnings forecasts for the next two financial years as being highly achievable. The growing role played by self-marketing is expected to lead to a dynamic increase in revenue. We forecast that during the 2016 financial year, the break-even EBIT will be achieved on a whole year basis for the first time. However, this should already be achieved on a quarterly basis in the second half of 2015, so the current liquidity situation constitutes a sufficient buffer until achieving positive earnings.

In the light of the unchanged premises, we confirm our forecast and thus our target share price of €4.05. With a current share price of €2.20 (20/01/2015 at 16:56, XETRA), we are renewing our BUY rating.


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