May. 17 at 6:05 PM
Analysts project
$ACAD to generate slightly more revenues than
$PTCT over the next 5 & 10 years. Both ACAD & PTCT have historic gross margin profiles in the low nineties. Actual FY2025 gross margin for both was 92%.
Even though analysts project ACAD to generate more revenues than PTCT at the same gross margin profile, ACAD's market cap is roughly 60% of PTCT's market cap. Because PTCT's capital structure includes meaningful term debt, PTCT's enterprise value is about 150% higher than ACAD.
The attachment graphs analyst consensus of both over the next 10 years. Both had their 1st FDA approval 9 years ago. Reading the graph knowing both generate the same gross margin, does it seem logical PTCT's enterprise value is 150% higher than ACAD?
We're not bashing PTCT. This is not investment advice. Rather, we're genuinely trying to understand the disconnect in valuation.
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