Jun. 22 at 4:52 AM
$DERM $15 -
$20 BO. It is not if, it is when. Revenue will be stable with emrosi as insurance coverage improves. A 100M+ stable revenue company will allow an acquirer to earn much more than the 500M - 700M that they’d pay in a BO, since Emrosi patents expire in 2039. Once this gets back to
$9, a 60% premium for this company won’t be so crazy. I think Claude and team are packaging this for a BO with moves like securing base business. They dont want to do this for another 5 years. The only thing I worry about is Qbrexza. Patents for that expire throughout next 3-6 years, so a generic could possibly enter in 5 years IMO. That 7M a quarter would be helpful to replace sooner rather than later. The closer Emrosi gets to 100M annual revenue, that won’t matter though. Ex-Us outlicensing for Emrosi would be a game changer, which I have a feeling comes in 2027!
