DAVY VIEW

Clinigen has spent a decade building a platform that now provides extensive reach across a pharma product’s lifecycle. Key to its strategy is linking earlier stage healthcare services to later stage commercialisation activities, in particular product ownership. This model should support mid- to high-single-digit organic earnings growth. Furthermore, the commercial product strategy provides meaningful upside optionality to earnings. We do not think this is reflected in the stock’s current rating of CY 21 P/E 10.9x. We initiate coverage with an ‘Outperform’ rating and £11 price target.