Elan hugely undervalued, says Bloxham

BLOXHAM Stockbrokers believe Elan is still massively undervalued and has set a $45 price target for the share, up 86% on the €24.23 price range the shares have been trading.

In a note to clients, Bloxham analyst Peter Jackson said: "Our Sum of The Parts model prices Elan at $45. In addition, Elan sits on a price to sales ratio of 12.5x, a massive discount to other lossmaking biotechs that on average enjoy a price to sales ratio of 98x.

"Elan is being priced more like profitable biotechs that average price to sales ratios of 11x. This is out of synch with the proximity to market of Antegren and the depth of Elan's Alzheimers Disease pipeline."