Zeltia poised for significant potential growth, Edison raises valuation

18 March 2015

Spanish pharma company Zeltia (ZEL: MC) is laying the groundwork for a period of significant potential growth and value creation, according to a report from investment research company Edison, which has raised its valuation on the firm.

Zeltia plans to restructure the group and seek an initial public offering (IPO) in the USA, which would transform the strength of its financial and commercial abilities. The oncology pipeline could also provide upside as it enters an active period. Edison has raised its valuation to 1.03 billion euros ($1.09 billion), with earnings per share at 4.65 euros.

The group is proposing a reverse-merger whereby Zeltia will be absorbed by subsidiary PharmaMar with one PharmaMar share exchanged for one Zeltia share, and PharmaMar shares listed. Edison perceives this as a positive development in resetting the story onto the established and emerging oncology portfolio, ahead of a potential US IPO.

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