2023-08-09 17:45:29
August 08, 2023 Today at 11:43 am
Two major announcements first sparked a run on Mithra stock which was at its worst a few days earlier. But the title fell in closing.
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Mithra strengthens its links with Gedeon Richter, the title flies away
To secure its supply, Mithra announced on Tuesday morning an agreement with Gedeon Richter which already produces the E4 for the areas in which it is responsible for marketing the Estelle, namely Europe, the CIS and Latin American countries. No financial details were disclosed neither about this new partnership, nor about the pending litigation with PCAS.
Stock market resurrection
1,25
euro
On July 28, the stock hit a session low of 1.25 euros after a panic related to the company’s cash level.
In stock exchange, the title jumped more than 25% in the morning to 3.87 euros, after a jump of 22% the day before with no apparent explanation, except for sales of the Estelle (see below). But at the end of the session, profit taking took over and Mithra ended on a fall of 16.83% to 2.55 euros. On July 28, the title had touched a low in session at 1.25 euro after a movement of panic related to the level of cash of the company. An agreement for Donesta in Canada then calmed the spirits and caused a rush on the action.
Despite the drop on Tuesday, the title still shows a jump of more than 100% in just a few days. This rebound was no doubt also supported by Estelle sales by Gedeon Richter in Europe and Russia which reached 13.8 million euros in the first half against 5.8 million a year earlier, announced the group on August 4.
Thomas Vranken the KBC Securities applauds Mithra’s initiative to secure its supply chain for Estetrol in the context of the ongoing litigation with its current supplier, but he doesn’t expect it to have a major commercial impact. This is why he reiterated his recommendation to “hold” and his price target at 2.5 euros.
The marketing application file for Donesta should be submitted during the second half of this year for the USA.
Donesta
Maxime Stranart d’ING (“keep”; 2.8 euros) also welcomes this decision, but keeps its feet on the ground. It only solves one problem among others, he relativizes. “There are still financial risks due to a necessary refinancing of the debt while we await an agreement for Donesta (for the United States, editor’s note) and that the commercial performance of Estelle remains disappointing.”
The Donesta marketing application file should be filed in the second half of this year at the UNITED STATES and in 2024 at Canada. Already disclosed in March 2023 for the United States, Mithra expects, for the first half of 2024, safety data for Europe.
We will no doubt know more about this schedule and the sales of the Estelle when the company’s half-year results are published. for September 26.
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