Laboratorios Farmacéuticos ROVI - DORIA low risk, high reward

Laboratorios Farmacéuticos ROVI’s (ROVI) investment case rests on the growth opportunities in its speciality pharmaceuticals portfolio, in particular the ongoing European roll-out of its biosimilar enoxaparin. However, over the next 12-18 months we expect increased investor interest in the proprietary ISM-patented R&D pipeline. Risperidone ISM or DORIA, a long-acting injectable (LAI) for schizophrenia, is due to read out data in Q219 from the ongoing Phase III PRISMA-3 trial. DORIA’s potential US and EU approval (2020) and launch (2021) will validate ROVI’s long-acting formulation capabilities. With peak sales opportunities of US$411m (US and EU), this high gross margin product will be highly value enhancing to ROVI’s long-term profit growth. We value ROVI at €1.16bn or €23.3/share.