HYLORIS - The Multi Trick Pony - An update since IPO

This morning, we published a company note on Hyloris, with an update on the company’s profile post IPO. We believe that this company is building shareholder value in an incremental fashion through a combination of product development and the addition of new assets. Upon review of our model, we have estimated an average NPV/asset of € 30m. We maintain our buy rating and increase our PT to € 19.5.

We believe Hyloris as an incremental builder of shareholder value through the addition and development of new assets in its pipeline. It continues to target the addition of at least 4 new assets every year, which are repurposed or reformulated drugs. The company has met almost all goals and milestones it has set during the IPO progress. Most assets in development belong to the cardiovascular lineup, which represents 45% of the overall Hyloris valuation in our view. We estimated the average NPV/asset is approximately € 30m, but interestingly for more recent assets, our estimates land at an average NPV of € 35m. In this note, we have mainly focused on the new additions to the Hyloris lineup. Interestingly; the company seems to follow a more investment-like approach in the recent addition of its assets. It will be interesting to see if Hyloris continues down this path. Through deal tranching Hyloris can de-risk these assets step by step.
With this many shots on goal, even if some miss, it will not destroy the overall valuation of the company, thus this offers investors a favorable risk-reward play. Overall, we firmly believe in the potential of Hyloris, a true multi-trick pony. Thus, we maintain our Buy rating and have increased our target price to € 19.5.