Source: Streetwise reports 23/08/2021
A report by ROTH Capital Partners noted that Assertio Therapeutics ’business model is starting to gain strength.
In an August 20 research note, ROTH Capital Partners analyst Scott Henry reported Q2 / 21 results for Assertio Therapeutics Inc. (ASRT: NASDAQ).
“Basically, we found the quarter at the end of expectations based largely on revenue,” Henry wrote.
Pharma’s total revenue during Q2 / 21 was $ 25.4 million ($ 25.4 million) compared to ROTH’s estimated $ 20.4 million. The pace was due to the sale of four products. Indocin generated $ 13.1 million versus the $ 10.5 million ROTH forecast; Zipsor, $ 2.6 versus $ 2 million; Change, $ 6.1 million versus $ 6 million; and Sprix, $ 2.9 million versus $ 1.5 million.
Expenditure during Q2 / 21 amounted to $ 30.2 million, almost double the ROTH $ 15.7 million projection, but was due to the payment of a single litigation cost of $ 11. $ 3 million.
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Assertio’s earnings per share (EPS) during Q2 / 21 resulted in a loss of $ 0.32, which was adjusted to take into account the reverse division of securities that the company executed at the beginning of the year. EPS was well above the estimated ROTH loss of $ 0.08. Henry noted that the loss of EPS would have been about $ 0.06 had it not been for the legal payment of $ 11.3.
In light of its strong Q2 / 21 gains, Assertio increased its net sales target for 2021 to $ 91-96 million, from $ 85 million to $ 92 million. It also revised its EBITDA target to $ 34–37 million, from $ 34 million to $ 40 million.
“We saw this hardening of the [EBITDA] it was a remarkable positive, as the previous guidelines did not take into account the $ 11.3 million legal burden that was adopted in Q2 21, ”Henry wrote.
On the quarter as a whole, the analyst commented: “We see Q2 / 21, combined with strong guidance, as a sign that the business model is starting to gain strength.”
To gain even more momentum, Henry pointed out, Assertio should focus on two areas. One is the acquisition of companies and / or products, the latter will likely be the “key positive lever for future actions,” he wrote.
The second is to take advantage of the company’s “hub model,” Henry added, in which recipes are channeled through a central location. This allows for better control of the entire pharmacy process, which ultimately translates into more prescriptions and easier reimbursement.
ROTH has a purchase rating and a target price of $ 1.55 per share on Assertio Therapeutics, which compares to its current price of approximately $ 0.89.
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