A key acquisition has Laurentian Bank Securities analyst Joseph Walewicz upgrading Tribute Pharmaceuticals (TSXV:TRX).
On May 21, Tribute announced it had has acquired the U.S. rights to Fibricor® from Sun Pharmaceutical for (U.S.) $10-million. The product had recent annual sales of $4.7-million
“We are very pleased with these events for a multitude of reasons,” said CEO Rob Harris. “The Fibricor® acquisition marks Tribute’s commercial entrance into the U.S. market. Fibricor® provides Tribute with an approved, marketed product currently generating revenues and competing in a multi-billion dollar market, which we intend to use as a platform for building our U.S. commercial infrastructure. Most importantly, the acquisition of Fibricor® is immediately accretive.” Mr. Harris went on to say, “in connection with this acquisition, the Company is also announcing the hiring of Billy Maichle as the President of the newly created Tribute U.S. subsidiary. Billy has extensive experience in the U.S. specialty pharmaceutical market along with a vast knowledge of Cambia®, Tribute’s lead promoted product in Canada. We are thrilled to welcome him on board.”
Walewicz says the personnel pickup might prove more valuable than the asset itself.
“While the net contribution for Fibricor is modest, it allowed Tribute to hire industry veteran William (Billy) Maichle to serve as President of Tribute’s U.S. business and to put the infrastructure in place to acquire additional products for the U.S. market,” he said. “Mr. Maichle’s experience in building U.S. specialty pharmaceutical businesses will be a tremendous asset for Tribute as it engages in this new growth strategy. In conversations with management, Tribute will target products for the U.S. market of $5-50 million, which is smaller than those targeted by competitors.”
In a research update to clients today, Walewicz maintained his “Buy” rating, but raised his one year target price on Tribute Pharmaceuticals to $1.50 from his previous target price of $1.20.
Disclosure: Tribute is an annual sponsor of Cantech Letter