QBIO GRATE NEWS LITCHFIELD HILLS RESEARCH
Action Summary – 16 December 2019
Analyst Theodore R. O’Neill is initiating coverage of Q BioMed Inc.
• We are initiating coverage of Q BioMed Inc. with a Buy rating and an $5.00 price target. Q BioMed Inc. aims to accelerate the monetization of biomedical technologies through rapid innovation and collaborative partnerships with industry leading researchers
• We expect revenue from its non-opiate based cancer bone pain management product (Metastron and its generic) to begin next year and believe demand will exceed expectations
• We believe that CDC guidelines for prescribing opioids for chronic pain are going to advance sales of Metastron and its generic. Given the paperwork and monitoring required for prescribing opioids for chronic pain, prescribing Metastron or its generic will be a welcome alternative. There is also the potential for label extension to treat bone cancer which would more than double the market opportunity
• Diversified and growing portfolio of products and milestones. The company has a pipeline of other products under development to treat liver cancer, glaucoma, kidney and vascular diseases
• Shares appear to be priced significantly below absolute and comparative metrics: 2021 EV/Sales is a 76% discount to peers
12/13 Closing price: $1.46
Market cap: $24 million
Multiple of book: NMF
EV/2021 Sales: 1.00
Shares outstanding: 16.7 million
Insider ownership: 28%
Avg. trading volume: 68,000
Dividend/Yield: NA/NA