Wall Street expects this pharma company to grow by double-digits over the next five years. The shares recently crossed over their 50-day moving average, a bullish indicator.
Top Picks Update
ANI Pharmaceuticals (ANIP)
From The Periscope Report
Our top stock pick for 2017 is ANI Pharmaceuticals (ANIP), which markets branded and generic prescription pharmaceuticals. The company focuses on producing controlled substances for pain management (narcotics), anti-cancer (oncolytics), women’s health (hormones and steroids), and complex formulations including extended release and combination products.
ANIP has eight products that are either number one or number two in terms of market share, which is the premise behind our recommendation since market dominance is an essential attribute we look for. ANIP has 25 drugs on the market right now, with another 76 under development, addressing a total annual market size of $3.7 billion.
ANIP has two new products that should double the revenue base within two years: Corticotropin, which is used to treat multiple sclerosis and rheumatoid arthritis, and Inderal LA, which is a beta blocker used to treat high blood pressure.
ANIP has developed a comprehensive regulatory filing plan for the Corticotropin Gel product and intends to meet and present the plan to the FDA in the second half of 2017, which is right on schedule. Corticotrophin is an asset that potentially could drive upwards of $200 million of annualized free cash flow for ANIP.
For the 1Q ended March 2017, total revenue increased 78% YoY to $36.6 million. Adjusted EBITDA increased 29% YoY to $14.7 million. On a Non-GAAP basis, Net Income increased 43% YoY to $8.6 million, or $0.74 per share, up from $0.53 per share a year ago. ROE was 23.8% and ROA was 12.3% over the last 12 months, up 250 basis points from the prior quarter, and among the highest ratios for a generic drug company.
Management affirmed its guidance for the full-year 2017, with revenues in the range of $181 – $190 million, Adjusted EBITDA in the range of $73.1 - $77.2 million, and Non-GAAP earnings of $3.58 - $3.94 per share.
With the stock at $47, it is trading for just 12 times expected earnings. In summary, ANIP will introduce at least ten new products in 2017. ANIP has market leading products in seven different categories and barriers to entry are high. ADD to your positions.
Tom Byrne, The Periscope Report, t2byrne@gmail.com, 4025 Sunset Ridge Drive, Canyon Ferry Crossing, Helena, MT 59602, 406-465-4663, July 4, 2017