Cardiome Is A 'Rising Global Spec Pharma Play With Growth Potential'

H.C. Wainwright’s Swayampakula Ramakanth mentioned that CARDIOME PHARMA CORP (NASDAQ: CRME) “has an experienced in-hospital sales force and is developing a niche business model in the fragmented and difficult-to-operate $100B European hospital pharmacy market.”

Ramakanth initiated coverage of the company with a Buy rating and price target of $9.50.

A "Rising Player"

“Cardiome has developed Brinavess for atrial fibrillation and in the last three years has inlicensed the commercial rights to five additional products in ex-US geographies,” the analyst said.

In addition, management intends to expand to other geographies in the near to mid term, including Easter Europe, Latin America and Canada.

Therefore, Ramakanth expects Cardiome Pharma’s revenues to increase from $27 million in 2016 to $172 million in 2025.

“If the current business model is successful, we believe Cardiome could become a premier partner for companies that wish to commercialize their products in these traditionally difficult-to-operate markets,” according to the H.C. Wainwright report.

“Geared For Growth”

Cardiome Pharma initially had a commercial structure focused on marketing Brinavess in the EU in 2013.

However, since then management had added products to the portfolio, with the company reporting revenues of $21 million for 2015.

“As a part of this process, the company has entered commercial partnerships with major pharma players,” Ramakanth noted, while adding, “We believe that these recent product additions would deliver rapid revenue growth in the mid- to long-term, adding nearly $3M to the top line in 2016 and approximately $99M in 2025.”