Berenberg gives positive prognosis for Cosmo Pharmaceuticals with 'buy'

Cosmo NV

31/01/2023 13:05

** Berenberg starts Cosmo Pharmaceuticals  COPN.S  with a
"buy" rating and an over 20% upside to Monday's closing price
with PT of CHF 80
    ** Cosmo is an attractive small-cap pharma play, the broker
says, given growth potential from new launches, its move to
high-margin sources of income, and relatively de-risked pipeline
    ** It points to the Swiss company's royalty income from
Winlevi and revenue share from GI Genius that the broker expects
to drive double-digit sales growth in the coming years
    ** The brokerage also notes steady cash flows from Cosmo's
legacy ulcerative colitis drugs supporting ongoing operations
    ** Berenberg adds Cosmo's Phase 3-ready assets Breezula,
Aemcolo and Lumeblue pose upside risk to the stock, along with a
possible expansion of the GI Genius agreement with Medtronic
    ** All four analysts covering the stock rate it "strong buy"
or "buy" with a median PT of CHF 82 - Refinitiv data
    ** The Cosmo stock is up 2.7% in afternoon trade
 (Reporting by Amir Orusov)
 ((Amir.orusov@thomsonreuters.com))