San Diego, CA -- (ReleaseWire) -- 04/19/2016 --SeeThruEquity, a leading New York City based independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a company note on Innovus Pharmaceuticals, Inc. (OTCBB:INNV)
The note is available here: INNV April 2016 Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
- Innovus Pharmaceuticals, Inc. (OTCBB:INNV, "Innovus") is an emerging commercial stage pharmaceutical company that delivers safe, innovative and effective over-the-counter (OTC) medicine and consumer care products to improve men and women's health, respiratory disease and vitality. 2015 was the second year of revenue generation for Innovus, and the company has recently made several strategic moves that should drive growth for the company in 2016E and beyond.
Key developments at the company include the following:
- In March, Innovus completed the acquisition of revenue generating assets of Beyond Human, which includes a growing commercial franchise that promises to triple Innovus if management executes.
- Innovus continues to expand its commercial products– now with 13 commercialized products and eight commercial agreements covering 60 countries.
- Innovus recently completed an important capital raise of nearly $2.5mn and has publicly stated its intention to uplist shares to the NYSE MKT.
Highlights of note are as follows:
Acquisition of Beyond Human to drive growth in 2016
Innovus completed what appears to be a well-conceived and potentially transformative strategic move on March 1, 2016 with the acquisition of revenue generating assets of Beyond Human. The move will add scale and accelerate the company's push towards achieving profitability – potentially as soon as 2017, if the company performs as hoped by management. Beyond Human was a profitable and growing company in 2015, with sales of $2.2mn and net profit of $0.4mn. Combined, management expects the company to achieve $4mn in pro forma revenues for 2016, with the company reaching cash flow neutral performance by the end of the year and profitability in 2017E.
Beyond Human adds synergy to slate of commercial products
With the acquisition of assets of Beyond Human, Innovus now has 13 commercial products and 3 pipeline products targeting a $3 billion market opportunity in men's and women's health and vitality and respiratory disease. Indeed we see the acquisition as having clear revenue synergies in men's health and vitality, given that Beyond Human's leading products are in the testosterone and human growth hormone markets – the testosterone market alone is expected to reach $3.8 billion by 2018E, according to Bloomberg and Statista. Beyond Human's natural Testosterone Booster supplement, Beyond T Human®, and its natural Human Growth Agent HGA®. These are both growing commercial products with customers and an online lead generation platform that is likely to overlap with products already offered by Innovus, such as EjectDelay®, Sensum+, and Vesele®.
Innovus price target of $0.80
We see Innovus as a high-risk / high-reward investment opportunity in the OTC pharmaceuticals space with a differentiated business model focused on men and women's health and vitality, and an expanding international presence. Our price target moves to $0.80. The change in target reflects the higher than expected share count relative to our initial valuation of the company in 2014 (67.6mn share now versus 24mn at initiation). We are enthused by the growth and synergies enabled by the Beyond Human acquisition, and eager to learn of the upcoming FDA decision for FlutiCare™. If achieved, the price target of $0.80 reflects potential upside of 400% from the recent price of $0.16.
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About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging leader in OTC and consumer products for men's and women's health and vitality. The Company generates revenues from its lead products (a) BTH® Testosterone Booster, (b) BTH® Human Growth Agent, (c) Zestra® for female arousal and (d) EjectDelay® for premature ejaculation and has an additional five marketed products in this space, including (e) Sensum+® for the indication of reduced penile sensitivity, (for sales outside the U.S. only), (f) Zestra Glide®, (g)Vesele® for promoting sexual and cognitive health, (i) Androferti® (in the US and Canada) to support overall male reproductive health and sperm quality, (j) BTH Vision Formula, (k) BTH Blood Sugar, among others and eventually FlutiCare™ OTC for Allergic Rhinitis, if its ANDA is approved by the U.S. FDA.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
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