Marketing
Healthcare
CORPORATE RESEARCH
Pierrel
Stepping Up The Pace
Fair Value €92.8m Current market cap: €72.9m
Luke Poloniecki +33 (0)1 56 68 75 49 Equity Analyst lpoloniecki@bryangarnier.fr Caroline Lacroux Equity Analyst clacroux@bryangarnier.fr +33 (0)1 56 68 75 89
1st July 2008
ITALY - Expandi
Bloomberg Reuters 52 week High / Low (€) Market Cap (€m) EV (BGe) (€m) Volume 6m Avge (in shares) Free float (June 2008) EPS growth 09-11e (CAGR) Gearing (2007 pro forma) Dividend yield (2007 pro forma) YE: 31 Dec Sales (€m) % change yoy EBITDA (€m) EBIT (€m) EBIT margin, % EPS (€) EV / Sales EV / EBIT PE (x) 2008e 49.4 22.7% 1.8 (0.2) nm (0.1) 2.1x na na 2009e 65.2 32.0% 9.6 7.7 11.8% 0.4 1.6x 13.7x 16.0x 2010e 73.9 13.4% 13.0 11.1 15.0% 0.7 1.4x 9.5x 10.6x PRL IM PRL.MI 10.8 / 6.6 72.9 105 7,628 32.5% 42.2% 119.8% None 2011e 82.4 11.6% 16.2 14.3 17.3% 0.9 1.3x 7.4x 7.9x
Pierrel is a European leader in Pharmaceutical Outsourcing, offering Contract Research (CRO) and Contract Manufacturing (CMO) for the development and production of existing and nascent therapeutics. Three recent CRO acquisitions bolted onto an established CMO platform, have given Pierrel the critical mass and full-service offering necessary to open up the lucrative, and less competitive mid-Pharma market.
High earnings visibility: With its unique, integrated services offering, the group’s capabilities encompass early clinical development through to largescale production, rendering it highly appealing to mid-size drug developers seeking the outsourcing route. Long-term contracts with high renewal rates, lower overall risks, and give great visibility over revenue streams. Competitive advantage: Proven expertise in both CRO and CMO holds Pierrel in good stead. With 50 years of CMO manufacturing experience and a truly Pan-European CRO network - across 14 countries - Pierrel has significant competitive advantages. Strong sector growth: Global CMO and CRO markets are set to enjoy 9.2% and 7.0%
CORPORATE RESEARCH
Pierrel
Stepping Up The Pace
Fair Value €92.8m Current market cap: €72.9m
Luke Poloniecki +33 (0)1 56 68 75 49 Equity Analyst lpoloniecki@bryangarnier.fr Caroline Lacroux Equity Analyst clacroux@bryangarnier.fr +33 (0)1 56 68 75 89
1st July 2008
ITALY - Expandi
Bloomberg Reuters 52 week High / Low (€) Market Cap (€m) EV (BGe) (€m) Volume 6m Avge (in shares) Free float (June 2008) EPS growth 09-11e (CAGR) Gearing (2007 pro forma) Dividend yield (2007 pro forma) YE: 31 Dec Sales (€m) % change yoy EBITDA (€m) EBIT (€m) EBIT margin, % EPS (€) EV / Sales EV / EBIT PE (x) 2008e 49.4 22.7% 1.8 (0.2) nm (0.1) 2.1x na na 2009e 65.2 32.0% 9.6 7.7 11.8% 0.4 1.6x 13.7x 16.0x 2010e 73.9 13.4% 13.0 11.1 15.0% 0.7 1.4x 9.5x 10.6x PRL IM PRL.MI 10.8 / 6.6 72.9 105 7,628 32.5% 42.2% 119.8% None 2011e 82.4 11.6% 16.2 14.3 17.3% 0.9 1.3x 7.4x 7.9x
Pierrel is a European leader in Pharmaceutical Outsourcing, offering Contract Research (CRO) and Contract Manufacturing (CMO) for the development and production of existing and nascent therapeutics. Three recent CRO acquisitions bolted onto an established CMO platform, have given Pierrel the critical mass and full-service offering necessary to open up the lucrative, and less competitive mid-Pharma market.
High earnings visibility: With its unique, integrated services offering, the group’s capabilities encompass early clinical development through to largescale production, rendering it highly appealing to mid-size drug developers seeking the outsourcing route. Long-term contracts with high renewal rates, lower overall risks, and give great visibility over revenue streams. Competitive advantage: Proven expertise in both CRO and CMO holds Pierrel in good stead. With 50 years of CMO manufacturing experience and a truly Pan-European CRO network - across 14 countries - Pierrel has significant competitive advantages. Strong sector growth: Global CMO and CRO markets are set to enjoy 9.2% and 7.0%