MNLO - Menlo Therapeutics' Enterprise Valuation Equals ~80% Of Estimated Peak Annual Sales Of 2 Recent FDA Approved Products
Our analysis concludes Menlo Therapeutics (MNLO) is materially undervalued primarily because, at $1.70 per share, MNLO's enterprise valuation is slightly less than $200MM which is less than 80% of its estimated peak annual sales. In early March 2020 (just before most of the country went into at least a partial quarantine), MNLO's CEO said a dermatology company (MNLO is a dermatology company) with MNLO's current product profile is "sub-scale." Assuming MNLO's CEO was genuine, our analysis concludes shareholder value is maximized by a sale of MNLO to a larger, "scaled" dermatology company as