Report reflects good and bad of Paion's Cosmo deal

6 July 2016

Investment research firm Edison has raised its valuation on German specialty pharma company Paion (ETR: PA8) but decreased the earnings per share (EPS) assessment after the out-licensing of certain rights to Italian drugmaker Cosmo Pharmaceuticals (SIX: COPN).

Figures quoted in the report reflect the impact on Paion’s value of the sale of the US rights to the short-acting anaesthetic remimazolam, the company’s lead product, which is undergoing Phase III trials in the USA.

The deal with Cosmo brings Paion 20 million euros ($22.2 million) of cash, including a 9.6 million euros share purchase, 42.5 million euros in potential milestones and a 20% to 25% royalty.

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