Clinuvel Pharmaceuticals Limited

Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

Clinuvel Pharmaceuticals Limited (ASX: CUV) is developing drugs to treat a broad range of severe skin illnesses. The company’s branded first-in-class photoprotective drug called SCENESSE®, is utilised to treat phototoxicity in adult patients with erythropoietic protoporphyria (EPP).

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~24.01% of the total shareholding. ACN 108 768 896 Pty. Ltd and Ender 1, L.L.C are holding a maximum stake in the company at ~5.79% and ~5.24%, respectively.

1.4 Key Metrics: In 1HFY22, the company's gross margin stood at 99.8%, higher than the Industry Median figure of 83.8%. Net Margin for 1HFY22 stood at 23.7%, as compared to the Industry Median figure of 14.4% of Industry Median. The below picture depicts the current ratio and EBITDA margin trend since 1HFY19.

Section 2: Business Updates and Financial Highlights

2.1 Recent Developments:

2.1 Results Highlights of 1HFY22 (Period Ended 31 December 2021): CUV’s cash receipts and prudent control of expenditures aided the growth in its commercial operations based on SCENESSE® for EPP patients. Also, the rising cash position facilitated CUV’s commercial operations in Europe, Israel, and the USA.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

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