It's been mentioned, including by the Clinuvel boss, that CUV is undervalued so let's check some comparisons and see how it looks. Below is mostly a repost but I have updated to allow for price changes and other recent positive news on delays to competition and the CUV phase III in Vitiligo.
One of the very best comparisons to CUV is Disc medicine, which is many years away from entering the EPP market where CUV enjoys a monopoly. Disc makes significant losses, which is ok for this stage, but they may never even get an approval and they certainly don't make great profits like CUV or have an FDA approved drug in their near term future yet they are valued at about $2 Billion AUD while CUV languishes at about 0.8 Billion (with $160M cash). Amazingly Disc should probably raise a bit of funding and offer cash/shares to take over CUV - CUV already monopolise the market DISC is seeking to enter with their lead drug candidate and CUV are already profitable - seems like good business sense rather than pouring money down the drain with no guarantee of success in 4-5 years time. It is really an absurd situation when the hopeful in disc has a valuation ~3 times higher than the commercialised, highly profitable FDA approved market monopoliser in CUV which also has several 'blue sky' opportunities (including a phase III clinical trial for Vitiligo with their already FDA approved and safe drug). This seems to be a good reason to list on the NASDAQ where Disc is listed.
A biotech company actually making some cash, albeit on a lower margin compared to revenue is: Nanosonics, FY2023 Revenue $166 Million, Profit after tax $19.9Million. Market cap $1.3 Billion Clinuvel, FY2023 Revenue $78 Million, Profit after tax $30.6Million. Market cap $0.8 Billion
Next is another biotech who like CUV has been growing revenues and profits for quite a few years now: Pro Medicus FY2023 Revenue $125 Million, Profit after tax $60.6Million. Market cap $9.3 Billion Clinuvel, FY2023 Revenue $78 Million, Profit after tax $30.6Million. Market cap $0.8 Billion
Pro Medicus of course has a share buyback conducted by Goldman Sachs in place and they subsequently have much less short interest/activity than CUV. That certainly leads to some very happy shareholders because that extra $8.5 Billion in market cap for just $30 Million more profit than CUV is really something to admire. Shortsellers with CUV are in there every day actively manipulating the price, including selling fake shares/liquidity to force the price lower. Mum and dad retail investors can't/don't buy tiny parcels of shares constantly to keep rising and protecting their investment so why can short sellers be allowed to do this and destroy value for retail investors. CUV has even grown their shareholder register a good percentage over the last 2 years according to Annual reports while the shareprice has tanked. A share buyback is desperately needed to balance the fight in shareholders favour, it would be nice if the company just acknowledged how shorters are every day destroying shareholder value as ASIC data shows this irrefutably.
Anyway, just some (hopefully interesting figures) to show a comparison, Clinuvel looking great here especially compared to the lofty heights of the 'competition' in DISC who possibly, maybe, might one day be a threat (the other competitor MT is also many years off with another phase III trial yet to begin or even recruit I believe). I wish CUV would give guidance for next years profits, anyone want to forecast, will they hit the $40 Million NPAT taking cash to ~$200 Million or something less around the mid $30's?
All IMO DYOR
CUV Price at posting:
$16.95 Sentiment: Buy Disclosure: Held
(20min delay)