(Finance) – ValueTrack lowered to 1.25 euros per share (from the previous 1.90 euros) the fair value on the title Ulysses Biomedhealthcare biotech company listed on Euronext Growth Milan, including the option of 0.15 euros per share for customized projects not taken into consideration in the forecasts.
Analysts write that when Ulisse Biomed signed the deal with Hyris last December, they welcomed the deal as it could address Ulisse Biomed’s shortcomings and create a much stronger player: the innovative integrated PCR platform created by Hyrys, Ulisse Biomed tests and a combination of hardware, software and diagnostic skills. After just a few months, the distinctive and versatile diagnostic system closed by Ulysses Biomed & Hyris seems to meet market expectations, with a strongly improved response from customers.
The fiscal 2023 balance sheet consolidated Hyris while the P&L did not (as the deal closed on December 28), however EBIT and profits were impacted by the amortization of goodwill of 2.3 million euros. Although the results of the exercise were not very significant, the strategic potential for the new entity is very attractive on paper (stronger competitive position and larger addressable market), although execution risk is high.
In this context, ValueTrack built the new Ulisse Biomed model with a FY24 VoP of approximately €2.2 million and net liquidity down to €1.3 million by the end of the year. Regarding the fiscal year 2025provides afurther strong growth and margin expansionwith fully funded operations and zero cash burn, provided that i) the new integrated Hyris system takes off as planned on a broader test menu and ii) cost optimization leads to the expected savings.