This week we've initiated coverage on SUDA (ASX: SUD), a Perth-based a drug delivery company focused on oral spray formulations of existing drugs.
Imagine these five things. First, a small pharmaceutical company with a unique platform for reformulating billion-dollar drugs for oral delivery. Second, that such delivery is not only safer but also much faster-acting. Third, that the target markets are large, including patients suffering migraine, anxiety, erectile dysfunction, nausea and malaria. Fourth, that a reformulated approval potentially involves months (not years) and costs a few (not hundreds of) millions. Fifth, that the small pharma already has its first licensing deal with a top-20 global pharma, as well as two other recent deals. Well, the small pharma is SUDA. We value it at 9 cents per share base case and 25 cents per share optimistic case using a probability-weighted DCF approach. Our target price of 17 cents per share sits at around the mid-point of valuation range.
You can download a copy of NDF Research's initiation report on SUDA by clicking here or visiting ndfresearch.com. We commend the report to you. Note - the usual disclaimers apply - click here.