PAC Partners Equity Research Report
- ANR has responded positively to Zoetis handing back global right to use bromelain in livestock on 14 June.
- Careful balance sheet management ensured that ANR had ~$5.4m of cash on 30 June 2019. This is almost two years at current expense rate of $0.25m/month for both animal and human applications.
- ANR will use this runway to find global partners, and has re-initiated partner discussions with over 10 multinational animal health companies.
- ANR nominated the next operational steps are likely to be: commercial launch of Detach(R) for pig suckers in Australian 2020 winter; and, initiation of human trials with GaRP from 2HCY'19F.
- Zoetis' validation was significant and its removal raises the unknown risk level with ANR, and shifts our Buy to a Speculative Buy. Our Valuation and Price Target are reduced 36% to $1.80/share & $0.90/share.
- We believe Zoetis pulled out because customers are not paying enough premium for antibiotic free meat. We know the best way to remove unknown risk is successful commercial sales and clinical trials.
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About Anatara Lifesciences Ltd
Anatara Lifesciences (ASX:ANR) is developing and commercialising innovative, evidence-based products for gastrointestinal health where there is significant unmet need. Anatara is a life sciences company with expertise in developing products for animal and human health. Anatara is focused on building a pipeline of human gastrointestinal health products. Underlying this product development program is our commitment to delivering real outcomes for patients and strong value for our shareholders. For more information, please visit www.anataralifesciences.com.
Anatara Lifesciences Ltd