May. 25 at 12:30 AM
$SWTX is being acquired at the lowest multiple of cumulative 10-year projected revenues & gross margin per acquiree management when compared to 6 peers on the attachment with a like growth profile &
$1B in annual sales within 5 years of M&A
A common risk cited to SWTX's valuation potential was uncertainty around the unpublished royalty rate due Pfizer. SWTX mgmt prepared a gross margin forecast @ ~84% of sales
SWTX was acquired @ 0.31X its cumulative 10-year projected gross margin. These 6 peers were acquired at 0.36X to 0.83X their cumulative 10-year projected gross margins. What else can be said?
This is further disappointing b/c SWTX had 2 FDA approved drugs that otherwise , in theory, lower risk which in turn should increase M&A value
We'd truly appreciate if any investor is aware of any peer with a like profile acquired at a lower multiple of projected 10-year gross margin. What are we missing?
$ITCI &
$IMGN appear the most recent peer M&A.
$XBI $NBI
