Original-Research: BRASTER S.A. - von East Value Research GmbH 

Einstufung von East Value Research GmbH  zu BRASTER S.A.

Unternehmen: BRASTER S.A.
ISIN: PLBRSTR00014

Anlass der Studie: Update
seit: 08.04.2016
Kursziel: PLN 32-PLN 40
Letzte Ratingänderung: 
Analyst: Adrian Kowollik

BRASTER S.A. (BRA) is a Polish company, which develops a telehealth device
that allows non-invasive,early-stage detection of breast cancer.
 
Since our first report in March 2015, BRASTER has shown that it delivers
what it had promised to investors, which in our view has made the stock
less risky. In June 2015, the company successfully completed a share issue,
whose volume was only slightly below what we had expected (PLN 39m vs. PLN
40m). This measure was essential in order to take further steps towards
commercialization of the BRASTER Tester device. Another very important
milestone was reached in December 2015, when BRASTER announced that its
production plant for matrices (core component of the BRASTER Tester device)
in Szeligi near Warsaw was ready.
 
BRASTER maintains its objective, which foresees the introduction of the
BRASTER Tester on the market in Q4/16, and we believe that it is realistic.
According to management, the final product, which has been designed by
Dutch company PEZY Group that also works together with the electronics
giant Phillips, is now ready. A partner from Sweden (Rosti) will organize
the whole manufacturing process, including the selection of appropriate
suppliers and purchasing of components. After tests of the production
facility and a marketing campaign in the summer months, BRASTER plans to
start selling its Tester device from Q4/16 in Poland and from H2/17
internationally. In Poland, the company wants to focus especially on online
shops, pharmacies and women's doctors, while on foreign markets it plans to
distribute the BRASTER Tester through medical partners. We would like to
emphasize that while it has already been in discussions with Polish
distributors for several months, BRASTER will only sign distribution
agreements 2-3 months before start of production.
 
Although we have adjusted our model in order to account for lower revenue
growth in the medium term, our fair value for BRASTER's shares of PLN
32-PLN 40 remains unchanged. While BRA's liquid funds amounted to PLN 25.6m
at the end of 2015, its management believe that it might have to raise
additional debt or equity capital. The reason is a plan to enter the US
market already in 2017 (thus one year before previous schedule), which
would require a certification by the Food and Drug Administration (FDA) as
well as additional investments in working capital. As the US is the largest
health market worldwide, it is much easier to introduce products in other
regions, which have already been approved for sale in North America.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/13715.pdf
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.eastvalueresearch.com.

Kontakt für Rückfragen
Adrian Kowollik
a.kowollik@eastvalueresearch.com

-------------------übermittelt durch die EQS Group AG.-------------------


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