AEterna Zentaris has 58 million shares outstanding and trades at $6.23, for a market cap of roughly $360M, and the effective market cap of its biopharmaceuticals business alone is $160M, says Dr. Winkler. We maintain our overweight rating on this stock, she asserts. Our recommendation principally rests on our opinion that the sum of this companys parts far exceeds its market-determined value.
So, when will AEterna Zentaris stocks see an upward movement? Dr. Winkler says its hard to be sure. That equity in this pipeline is so inexpensive may be explained by the companys relative obscurity to date as a Canadian small pharma company with a complex corporate structure, she explains, adding, We cant point to specific catalysts that we think will bring AEZS into a position of more visibility. In addition, the corporate structure makes it a bit tricky to extract meaningful numbers since they consolidate financials of core biopharmaceutical segment with 48% owned subsidiary, Atrium Biotechnologies.
Atrium Biotechnologies has 28 million shares outstanding and trades at about $14.40, implying a market cap of roughly $400M, of which nearly $200M can be credited to AEterna Zentaris shareholders, says Dr. Winkler.
Backed by an increasingly active investor relations campaign, Dr. Winkler remains positive that upcoming Phase II data presentations and potential partnerships may accelerate an upward adjustment of valuation.