Product and capacity momentum

SINGAPORE | HEALTHCARE | UPDATE

 Potential application of Wafermine has extended further, from treatment of acute pain to depression and now to Complex Regional Pain Syndrome (CRPS).

 Wafer capacity expansion in Australia is on track to commence in July 2021. It will cater to demand for Entity nutraceuticals in China and Xativa medicinal cannabis in Australia.

 IXBIO announced a rights issue at S$0.20 per share at 7 rights for every 100 shares held. The TERP is S$0.237. Funds are for manufacturing and marketing activities.

 Our BUY recommendation and DCF (WACC 10%) TP of S$0.445 are unchanged. Expanding the use of core WaferiX drug delivery technology and capacity ramp-up to meet rising demand for its products are expected to provide stock catalysts.