Big opportunity for smart investors to make money in the short term
If you’re looking for a once-in-a-lifetime investment opportunity that can change your future, don’t look any further! The current market cap of this little gem is a mere C$26m. There is only one analyst firm covering this biotech company with a target price that equals C$150m.
Sirona Biochem (SBM.V / SRBCF / www.sironabiochem.com) is a cosmetic ingredient and drug discovery firm with a proprietary platform technology. It specializes in stabilizing carbohydrate molecules with the goal of improving efficacy and safety. They have developed a much safer and more efficient skin whitening compound called TFC-1067 which is hydroquinone free and has 8 times the efficacy of deoxyarbutin, the current gold standard.
Did you know that the worldwide skin whitening market is bigger than the market for skin tanning and sun protection? There is a huge market for skin whitening treatments in Asia Pacific where fairer skin is increasingly considered more attractive. TFC-1067 could be a perfect solution for this US$20bn market and a company maker on its own.
With growing awareness about the harmful (cancer) effects of some skin whitening ingredients that are currently used in most of the products on the market, there is a massive unmet need for a safe and effective skin whitener like the one developed by Sirona Biochem (SBM.V) which opens up a big investment opportunity. Valeant Pharmaceuticals and other global players like Allergan, Beiersdorf, Estée Lauder, Galderma or Procter & Gamble really have the money and marketing power to bring such a potential blockbuster to the market.
The biotech analyst of First Berlin Equity Research (www.firstberlin.com), who is covering Sirona Biochem, used a very conservative number of 500 million potential users for his forecast. The market opportunity for Sirona Biochem is just enormous. Every big cosmetic company is looking to get involved in that growing market. The game changer is going to be if a company can get the right product on the market which removes the perception of risk. People are using these products already anyway, even though they know there is a risk involved, and if a company can take that risk out of the equation then the market size becomes even greater.
The management of Sirona Biochem came up with an internal valuation of US$265m including upfront, milestone and double-digit royalty payments for their new skin lightening compound TFC-1067 by using the standard risk adjusted net present value forecast model which is highly accepted in the industry. It is only assuming a market share of 15% which a major global cooperation could easily attain with an appropriate marketing budget. This valuation has been validated by Bloom Burton which is one of the largest investment banks in Canada.
For more information about Sirona Biochem and the Skin Whitening market you can watch this company snapshot walkthrough :
To read the full article, please see http://www.prc-partners.com/sirona-biochem
With a current market cap of approximately C$26m and an imminent licensing deal for their new skin lightening compound, Sirona Biochem has a lot of upside potential. First Berlin Equity Research is valuing Sirona Biochem at C$0.95 per share based on their current pipeline where licensing deals are in place. The analyst has not even included a deal for the new skin lightening compound TFC-1067 which could be signed in Q2/2017.