ANIP - ANI Pharmaceuticals Is Undervalued As Royalty Potential Is Overlooked
2024-06-10 01:50:26 ET
Summary
- ANIP's potential royalty revenue from two upcoming drug applications could generate $415 million annually, not reflected in the current share price.
- ANI Pharmaceuticals' legal action against CG Oncology could result in royalties for Cretostimogene, potentially adding $125 million per year.
- The Company's female testosterone drug could generate royalties of $290 million per year, with potential for additional indications and international sales.
Since Ani Pharmaceuticals ( ANIP ) merged with Biosante Pharmaceuticals in 2013, ANIP's growth has largely been fueled by M&A, the most important of which are the acquisition Purified Cortrophin Gel from Merck & Co., Inc. ( MRK ) in 2016 and the merger with Novitium Pharma in 2021. The market sees these as drivers of ANIP's growth, and analyst estimates currently reflect this. However, ANIP's royalty revenue potential is largely unnoticed. This article looks at two assets approaching FDA new drug application submissions, CG Oncology's ( CGON ), Cretostimogene Grenadenorepvec, a bladder cancer treatment and ANIP's Female testosterone (formerly known as Libigel), that if approved, could potentially generate $415 million in annual royalties, which equates to an additional $21.39 in revenue per share and a $16.90 increase in EPS, based on the current 19.4 million diluted weighted average common shares outstanding and a 21% corporate tax rate....
ANI Pharmaceuticals Is Undervalued, As Royalty Potential Is Overlooked