01-15-13 Intermune (ITMN)

****************** DAIWA NEW ISSUE COLOR: ITMN ***************** $85m (+12.75m) sen unsec cb coming tonight from GS/JPM. Terms:

5y, 3⅛-3⅝% up 25-30%, 2.5y S/C @ 130%. Cncrnt 12.5m (+1.875m) stk deal. UOP=repay 5% cb/fund Ascend trial/gcp. $660m mkt cap

1 drug Biotech focussing on pulmonolgy/fibrotic diseases. It’s Esbriet drug is in PIII within US, already used in 10 countries, expected to be in another 6 in ’13 (See CREDIT COLOR). Estimated US launch in ’15 & expected to be a blockbuster. $554m PF cash will help burn until launch. We’d use L+750. ADV=403k, no leaps, we’ll default to our 35vol cap. Theo=102/103.8/104.6. Small deal w/a very interesting equity/credit story. Expect equity x/over interest & those playing stk post placement. If you expect big a llocations, don’t hold your breath. >BUY< (bbg/Co filing)

———> Daiwa New Issue Credit Color: Intermune <————

* Biotech focused on pulmonology and fibrotic diseases.

* PF Cash    $554mm    PF Debt    $325mm   LTM EBITDA   $(176)mm

LTM FCF    $(175)mm  Yrs Cash   3.2yrs   Mkt Cap        $660mm

* ITMN has launched Esbriet (IPF treatment) in 9 EU countries & recently in Canada. Expect to launch in Spain & Italy & 4 smaller EU countries this yr. Conducting 3’rd P3 trial in US, expect results 1H14. Possibly on US mkt ’15 w/potential to be blockbuster in a few yrs. Currently, nothing competing on mkt, but HIH & Boehringer Ingelheim are both conducting P3 trials on treatments, w/ results also expected 2014. Significant cash will cover burn for a few yrs. No other pipeline.

* Our assigned spread —>L+750<— Src: Bloomberg, Co Filings

Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>