(BFM Bourse) – The company resulting from the split of Sanofi escapes the gloom of the Parisian market. The file has won the support of Oddo BHF, which has just added Euroapi to its list of preferred stocks for the second half of 2022, after the announcement of solid half-year results at the end of last week. The planets are therefore aligned for Euroapi, which has posted an increase of more than 40% since its IPO in early May.
Five months after its split from the pharmaceutical giant Sanofi, Euroapi is still unanimous among analysts. The file is among the strongest increases in the SBF 120, benefiting from the support of Oddo BHF, which reiterates its opinion of outperformance with a price target raised from 17.8 to 20 euros. Better still, the design office has included Euroapi in its list of Midcap beliefs for the second half of 2022 after the publication of half-year results which proved to be above expectations at the end of last week.
Oddo BHF praises in particular “the excellent dynamics of the business development of the CDMO franchise [la production de principes actifs dont Euroapi ne possède pas la propriété intellectuelle, NDLR] without any slowdown to date due to the current economy.”
This activity saw its growth jump by 22.2% over the first six months of the year. The momentum was mainly driven by revenue generated with Sanofi, up 56.%, while revenue growth with Other customers reached 5.2%. Thus, Euroapi’s overall revenues increased by 10.1% over one year to 483.8 million euros against 439.4 million euros a year earlier.
An increase of more than 40% since its IPO
The group has also confirmed all of its objectives for the current financial year, namely a turnover of 1 billion euros, a “core Ebitda” margin equal to or greater than 14% as well as investments representing approximately 14% of its turnover.
By 2025, the group is aiming for an annual revenue growth rate of between 6% and 7%, of which around 35% will come from its CDMO activities, while the relative weight of Sanofi in the turnover business should be reduced to between 30 and 35% by this horizon (in other words the growth of sales to third parties will be higher than the average growth of the market). The group also intends to improve the “Core Ebitda” margin so that it is equal to or greater than 14% in 2022 and greater than 20% by 2025 (compared to 12% in 2021).
The subsidiary specializing in the active ingredients of drugs, split from Sanofi, now shows a gain of more than 40% since its IPO last May at an IPO price of 12 euros. For its part, the former parent company Sanofi reveals a less flamboyant stock market performance and yields more than 15% over the same period.
Sabrina Sadgui – ©2022 BFM Bourse
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