Sunshine Biopharma Inc (SBFM)

[Jaxxm]

Aegis Capital: SBFM target price 3 Dollars

Sunshine Biopharma Reports Strong 3Q23 and is On-Track for Profitability in 2H2024.


Investment Highlights:
Sunshine Biopharma reported the results for its third quarter of 2023 and those results
were better than we expected. Quarterly revenue was on-track at almost $6 million,
compared to $4.3 million for the entire year of 2022. We believe the company is
progressing as hoped for and could reach profitability in 2H2024., which we would
view as a major positive achievement.
In addition, Sunshine has demonstrated better cost control than we estimated. We
expected total operating (G&A) expenses of $4.3 million for 3Q23 and the company
beat that, reporting actual operating expenses of only $2.8 million.
SBFM reported EPS of ($0.04) for Q3, handily beating our estimate of ($0.08).
Sunshine ended Q3 with $18.8 million in cash and liquid assets. This includes
spending more than $0.5 million to buy back stock.
The company also has a potentially blockbuster pipeline of three drugs in very early
stages of development; Adva-27a for pancreatic and other cancers, a PLpro inhibitor
to treat COVID-19 and the K1.1 mRNA therapeutic for liver cancer. Because these
drug candidates have not yet reached the clinical stage, we do not include them in
our price target valuation and they represent possible upside.
While the K1.1 mRNA and PLpro inhibitor programs are still on track to start Phase
1 clinical trials in 2H2024, the Adva-27a program has been delayed (see below for
details).
We see Sunshine Biopharma as being on the verge of putting together a string of
quarters with growing revenues from its generic (and OTC) drug business ramping
up from $4.3 million in 2022 to an estimated $22.5 million in 2023, $44.4 million
in 2024 and $100 million in 2025. We confirm our BUY recommedation for SBFM
shares and our $3 Target Price.

https://sunshinebiopharma.com/analysts-coverage/