Added to YB: 2022-10-15
Pitch date: 2022-10-09
MRV.TO [bullish]
Nuvo Pharmaceuticals Inc.
Author Info
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Company Info
Nuvo Pharmaceuticals Inc., doing business as Miravo Healthcare, provides prescription and non-prescription products for pain, allergy, neurology, and dermatology worldwide.
Market Cap
CAD 15.4M
Pitch Price
N/A
Price Target
4.18
Dividend
N/A
EV/EBITDA
N/A
P/E
4.70
EV/Sales
N/A
Sector
Pharmaceuticals
Category
special_situation
Special Situation
MRV.TO: Canadian pharma co trading at $6.9M mkt cap vs $15-20M normalized FCF before interest. Commercial segment (Blexten, Cambia, Suvexx) +22% H1, gaining share in allergy/migraine markets w/ patent protection. $107M debt to Deerfield being repaid from FCF ($6.4M '21). Warrants+debt conversion would dilute to 56.4M shares but add $67.5M cash = $1.2/sh. Est $0.26 FCF/sh post-conversion x 8x + $1.2 cash + $0.9 tax shield = $4.18 PT (7x upside). Risks: royalty cuts (Vimovo fell 50%), customer concentration (top 4 = 85%), FX, competition. Debt repayment is key—10 bagger if deleveraged.
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