- Outlicensing of Wafermine for Phase 3 trials is a major share price catalyst for the company to enter the estimated US$19bn global opioid industry.
- Plans for a Hong Kong IPO could trigger a price discovery of at least a HK$1.5bn (S$260mn) market valuation for the pharmaceutical business.
- Our earnings forecast cut to a net loss in FY22e due to delay in new capacity. Our BUY recommendation is maintained. Our DCF (WACC 10%) TP is lowered to S$0.335 from S$0.445 following our earnings downgrade and rights issue.