Est-ce que quelqu’un sait si il fait référence au brevet de PLIAGLIS qui expire en 2020? Ou un autre changement? Je viens juste de commencer à suivre cette compagnie. merci.
page 30 du MD&A Q4 2019.
« In addition, the Company was informed by its U.S. partner, Taro, of certain restrictive amendments to managed care in the U.S. which may have an adverse impact on Pliaglis sales in the future. Although the impact cannot be quantified and its extent is unknown at this time, the Company, along with its partner, will be closely monitoring sales in the U.S. »
Résultats trimestriels décevants publiés aujourd’hui et management peu actif pour valoriser leur actifs . I am out
I plan on emailing Linda Kisa at Crescita tomorrow with some questions. That paragraph is one of them. I’m not finding anything on Google about what a restrictive amendment is.
Linda is their IR person and also an accountant. Very knowledgeable.
lkisa@crescitatx.com
Je ne penserais pas que ce soit lié au brevet qui expire. Une nouvelle formulation de Pliaglis (avec un nouveau brevet valide jusqu’en 2031 si je ne me trompe pas) est déjà approuvée par le FDA.
Cela dit, comme plusieurs autres investisseurs, je ne sais pas de quoi il s’agit lorsque la compagnie mentionne ‹ ‹ adendments to managed care in the US › ›. J’ai envoyé un courriel à Linda hier, mais pas de réponse encore.
Voici la réponse que j’ai reçu:
In response to your question re Pliaglis U.S.,I can direct you to what we know. Here are some articles that talk about the amendments to drug reimbursement plans where there are limits established on reimbursement of certain products by Express Scripts and CVS Caremark, two of the large pharmacy benefit managers in the U.S. Pliaglis is included under the product name Lidocaine/Tetracaine.
We don’t know yet how this will be enforced exactly and how these limits will affect the sales of Pliaglis. All we know is that it may have an impact. We are working with Taro and, of course, they are trying to mitigate any potential negative impact on sales. Although we do not know all the details and it is too early to determine the potential impact on sales, we believe that it is important to be transparent with our investors.
Crescita Therapeutics Announces Measures in Response to COVID-19 Virus
2020-03-24 19:23 ET - News Release
LAVAL, QC, March 24, 2020 /PRNewswire/ - Crescita Therapeutics Inc. ( TSX: CTX) ( OTC US: CRRTF ) (« Crescita » or the « Company »), a growth-oriented, innovation-driven Canadian commercial dermatology company with in-house research & development (« R&D ») and manufacturing capabilities, today announced measures it is taking in response to the novel coronavirus pandemic (« COVID-19 »).
In accordance with the government-mandated shut-down of all non-essential businesses announced by Québec Premier François Legault yesterday, the Company will be temporarily closing its office and production facility in Laval, Québec, effective today at midnight until at least April 13, 2020. The facility closure will regretfully result in temporary layoffs affecting most production and office personnel. Certain employees deemed critical to maintaining basic services during the shut-down, including customer service, will be working remotely with reduced hours. Product distribution through the Company’s third-party logistics provider will remain operational with reduced capacity.
Business Impact to Date
Most of the Company’s Canadian clients in the aesthetic and medical aesthetic markets have temporarily closed resulting in substantially decreased Canadian product sales. The Company’s international business with various affected countries such as Malaysia, South Korea and China has also decreased. The Company anticipates that royalties from international sales of its products will be adversely affected by lower demand and may also be affected by border restrictions.
The Company is in the process of implementing various initiatives in order to conserve cash and help maintain its financial flexibility through the uncertainties and economic pressures posed by the pandemic. The members of the executive team, including the CEO and CFO, as well as members of the Company’s Board of Directors have agreed to temporary base salary or fee reductions ranging between 25% and 40%. In addition, effective March 24, 2020, the Company terminated its Automatic Share Purchase Plan (« ASPP ») which was launched on June 28, 2019 in connection with the Company’s current normal course issuer bid (« NCIB »). The current NCIB remains in effect on the same terms and conditions as previously disclosed. As of December 31, 2019, the Company had cash and cash equivalents of $9.3 million.
The Company is closely monitoring developments and will continue to provide updates as the COVID-19 situation evolves.
I took a look at Crescita’s 2019 results with some insights from Executive Chairman Dan Chicoine.
He spoke briefly about the new policy from CVS that may affect sales. They simply don’t know it will have any affect at this time.
I also did an exercise using Ben Graham’s Net-Net-Working-Capital.
Crescita is worth $.35/share or $7.1 million. This does not include any working assets.
To get a conservative value for Pliaglis I added up all the upfront and milestone payments Taro paid for U.S rights and the up-front payments by Cantabria for some Euro rights and got $13.8 million. Combined with NNWC of $7.1 comes to $20.9 million, $1/share, or double today’s share price. So get the cash on the balance sheet and Pliaglis for 50% of it’s value.
Skin brands, Pliaglis recurring royalty, drug pipeline, drug delivery technology all for free at this point.
Fixed the link. Thanks
Est-ce qu’on à une idée comment la fabrication et la commercialisation de désinfectant pour les mains va contribuer en revenue au prochain trimestre?
I was happy to see positive cash flow in Q1 without any revenue from milestone or upfront payments. Commercial skincare revenue was the lowest since Q3 2018. They claim that the company was not materially affected by COVID-19 in Q1 but COVID-19 closures were the cause of commercial skincare revenue decline. Slightly confusing wording in otherwise excellently detailed disclosures.
I was very happy to see $1.4 mil in Pliaglis royalty revenue from the U.S. Hopefully this means the restrictive amendments will not influence Taro as they sell Pliaglis in the U.S.
Q2 is going to be rough. The brunt of COVID-19 impact will be in Q2 and Q2 2019 is an extremely difficult comp ($9.3 million in revenue)… The large U.S. Pliaglis order in Q1 likely means minimal Pliaglis orders in Q2 as they work through the inventory.
Not sure how much money they can make manufacturing hand sanitizer but it can’t hurt.
Love the fact that you also use Benjamin Graham NNWC and NCAV . Do you believe that in a liquidation event Pliaglis would be worth 13,8M or is just a conservative assumption?
Best
That was a bit of a guess at what Pliaglis is worth. Two companies paid $13.8 million for the right to resell Pliaglis and also pay Crescita a double digit royalty. Taro and Cantabria are doing all the work selling Pliaglis. Crescita gets to sit back and collect the royalty revenue (with the exception of Canada where Pliaglis is using their own sales force).
In 2019 they earned $3 million in royalty revenue, $4 million in 2018… They have already earned $1.4 million in royalty revenue in 2020.
Cantabria is bringing on Spain, Portugal and France near year end. There are also some milestones attached to sales in these countries.
So the question is what kind of multiple do you assign to a 100% gross profit margin product that should continue to grow with additional countries coming online. It is approved in another 15 countries or so but not yet commercialized.
It has to be worth at least what Taro and Cantabria paid Crescita just for the right to sell it. I am confident the value of Pliaglis is far greater than the enterprise value of the company. My main concern with Crescita is they continue to invest in the commercial skincare line and it takes too long or never reaches profitability.
I took a crack at trying to value Crescita. Currently it’s trading as a net-net since the $5.2 million payment from Taro. assuming there are no issues collecting the payment.
The company is trading like it has no assets of any value. Pliaglis cannot be worth $0.
One of the cheapest stock to buy.
An other strong quarter with a 0.20 eps , Ebitda of 4316 k$ , cash of 13.9m$ and deals signed in China , Mexico and Austria.
J’ai utilisé la récente augmentation du cours de l’action comme une opportunité pour vendre ma position dans Crescita. Le bilan est excellent mais l’incertitude entourant un autre lockdown semble risquée. Le marché a montré sa volonté de vendre Crescita jusqu’à une valorisation net-net. Si un autre lockdown se produit, Crescita pourrait revoir ces niveaux.
Mon analyse complète: