Commissioned Research

Article by:
Nordea Markets

Xbrane is a biotechnology company focused on developing biosimilars and complex long-acting injectable generics.

Xbrane has commissioned Nordea Markets to produce a research report with the aim of providing investors with quality research on the company.

(Bio)Similar, yet different – Updated 6 April 2018

Challenging the biopharmaceutical market

Xbrane is a biotechnology company focused on developing biosimilars and complex long-acting injectable generics. The company was founded after developing a protein production technology which enables it to produce biosimilars eight times more efficiently than other standard systems, at a cost of up to 85% lower.

Structural growth opportunity

In our view, there are three market drivers which create a strong structural growth opportunity for Xbrane and other biosimilar developers: 1) The biopharmaceutical market is undergoing a “patent cliff”, as originator products with sales of SEK ~1,000bn are approaching patent expiration towards 2025; 2) Regulations have been created by medical agencies in recent years to ease the way for biosimilars to enter the market; 3) Several governments have become more focused on obtaining savings in health care spending.

All about EU and US regulatory approval

With Spherotide launched in Iran during 2017, and distribution partners signed in China, South Korea and Israel, Xbrane is on the verge of establishing a solid position in the market. Signing of distribution partners and regulatory acceptance in the US and Europe offers the largest potential valuation triggers. We use a sum-of-the-parts (SOTP) DCF model to value Xbrane, and derive an equity value range of SEK 77-96 per share, based on different scenarios regarding regulatory approvals and market launches for the company’s products.

Read the full report here.

Disclaimer

Nordea Markets is the commercial name for Nordea’s international capital markets operation. The information provided herein is intended for background information only and for the sole use of the intended recipient. The views and other information provided herein are the current views of Nordea Markets as of the date of this document and are subject to change without notice. This notice is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient. The information provided herein is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information contained herein has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. The document has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination.
Nordea Bank AB (publ), Company registration number/VAT number 516406-0120/SE663000019501. The board is domiciled in Stockholm, Sweden.

Conflict of interest

Readers of this document should note that Nordea Markets has received remuneration from the company mentioned in this document for the production of the marketing material. The remuneration is predetermined and is not dependent on the content. It is important to note that past performance is not indicative of future results. Nordea Markets is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction. This document may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Markets.

Issuer review

This report has been reviewed, for the purpose of verification of fact or sequence of facts, by the issuer of the relevant financial instruments mentioned in the report prior to publication. The review has led to changes of facts in the report. Completion date: 6 April 2018, 08:15 CET