First Berlin Equity Research on 24/06/2024 initiated coverage on APONTIS PHARMA AG (ISIN: DE000A3CMGM5/ Bloomberg: APPH GR). Analyst Christian Orquera placed a BUY rating on the stock, with a EUR 17.00 price target.

Abstract
Apontis Pharma AG (Apontis) is a leading specialty pharmaceutical company focusing on the development and marketing of a broad portfolio of ?single pills? and other drugs for cardiovascular and respiratory diseases in Germany. Single pills combine two to three off-patent active pharmaceutical ingredients (APIs), in one combination preparation. Single pill therapies are scientifically proven to significantly improve adherence to medication of patients, while reducing adverse cardiovascular events, mortality and treatment costs. 2023 was a difficult year with revenue setbacks leading to substantial EBITDA losses. The new CEO, Mr Wohlschlegel, is a marketing veteran with >26 years’ experience at the large German company Merck where he was most recently responsible for the German subsidiary and the European pharma business with a turnover in the billions. He took office in September 2023 to restructure, turnaround and increase efficiency at Apontis. He downsized staff to 110 (previously 185) in record time with anticipated annual savings of €6m to €7m p.a., launched a modern multichannel marketing strategy to approach physicians more efficiently and closed an exclusive marketing deal for two asthma drugs with Novartis. Following strong Q1 2024 financial results, we see Apontis in excellent shape to accelerate penetration of the highly attractive single pill market. We view Apontis as a very compelling turnaround story. Based on our DCF model, we initiate coverage of Apontis with a Buy rating and a price target of €17.00, which represents an upside potential of >100% from the current level.