ThinkEquity initiated coverage of Annovis Bio (NYSE American: ANVS) with a buy rating and $20 price target.
Annovis Bio is a clinical-stage drug platform company addressing Alzheimer’s disease, Parkinson’s disease and other neurodegenerative diseases. Its lead drug candidate, ANVS401, improves axonal transport or the information pathway of the nerve cell. ANVS401 attacks multiple neurotoxic proteins simultaneously, improves axonal transport, and impedes the toxic cascade.
The company estimates the potential annual worldwide market size for a disease-modifying treatment in neurodegenerative diseases is over $100 billion. Based on a discounted cash flow analysis of the projected free cash flows of ANVS401, ThinkEquity estimates sales of $100 million for ANVS401, across all indications, in the U.S. by 2024. Contributions from geographies outside the U.S were excluded. The company forecast sales of about $2 billion, in AD and PD, for ANVS401 in 2025 and $10 billion in 2026.
Based on these assumptions, and applying a 30% discount rate, the discounted cash flow analysis indicated an estimated value per share of $18 for ANVS. ThinkEquty’s price target of $20 is supported by DCF sum-of-the-parts valuation and $2 in estimated net cash/share.
Disclosure
Annovis (ANVS) is a client of RedChip Companies, Inc. ANVS agreed to pay RedChip Companies, Inc. a $8,500 monthly cash fee, beginning in February 2020, for RedChip investor awareness services and consulting services.
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