FYI | Feb 25 2020
Pitt Street Research finds an expert valuation range determined for intellectual properties soon to be owned by Azure Health Technology "reasonable".
By Pitt Street Research
Azure Health Technology Limited ((AZT)) is a listed shell company which announced on 8 November 2019 its intention to acquire Invictus BioPharma Ltd in a Reverse Takeover (RTO) transaction.
After the RTO the merged group will raise $7-10m in a placement of new shares to develop the Vitamin E-based products currently being worked on by Invictus.
Azure Health Technology believes this transaction can be completed in early-to-mid-2020. Post-money it will value Azure Health Technology at $28-31m. This report evaluates the technology behind Invictus BioPharma and the market potential of those products.
A nutraceuticals to prescription drug play
Invictus BioPharma is a Melbourne based drug developer being built around two drug delivery technologies called ‘TransT3’ (which allows transmucosal drug delivery for direct delivery of the drug to target tissues and organs) and ‘Tocotrienol ProDrug’ (TPDs) which allows a drug to be orally administered but at the same time delivered more effectively to target tissues and organs without passing through the liver first.
Invictus has developed two nutraceutical products delivering tocotrienols from Vitamin E based on a third delivery platform, called ‘MELT3’, designed for nutraceuticals only.
Invictus believes that the true health benefits of Vitamin E lie in the tocotrienol fraction of Vitamin E, and that the company’s products can reactivate the historically large market for Vitamin E supplementation. Longer term, Invictus believes that TransT3 and TPD can be used to develop a wide range of drugs targeting indications with unmet needs and that ultimately the company can transition to the development of high value prescription-only products.
A valuable natural products play
The Independent Experts Report related to the RTO contains an attachment headlined ‘Independent Valuation Report of Intellectual Property owned by Invictus BioPharma Limited’.
In that attachment, expert Dr David Randerson of Acuity Technology Management postulates a valuation range for Invictus BioPharma of $43.6-A$54.7m. We consider that valuation range reasonable.
Download the full report
Yesterday the report above was released by Pitt Street Research for which FNArena is a partner in distribution. The full report can be accessed here:
https://www.fnarena.com/index.php/pitt-street-research/AZT/
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