- In a note 12 months ago I told the story of how Assertio, formerly DepoMed, nearly went under after its disastrous acquisition of opioid drug Nucynta.
- A new management team was able to dispose of the asset, settle debts, and acquire a portfolio of NSAIDs, which have driven exceptional cash flow.
- The forecast for 2022 is for $126-136m of revenues and EBITDA of $64-72m.
- That's remarkable, but it may obscure the fact that sales volumes of lead asset Indocin appear to be shrinking and there's limited scope for new product acquisitions.
- It's a tough ask for management to keep Assertio afloat in a sea of troubles caused by opioid exposure and litigation. Approach with caution.
For further details see:
Assertio Holdings: Management Still Swimming Against The Tide