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Broker backs shield therapeutics share price to triple as it gushes over new CEO

One of AIM’s leading brokers has reaffirmed its view that the shield therapeutics (AIM: STX) share price could more than triple in value as it gushed over the appointment of a new CEO.

With effect from 1 June, shield therapeutics will be welcoming Greg Madison as CEO and finnCap revealed it is delighted by the move which it feels reduces execution risk for the business ahead of the US Accrufer launch.

Accrufer is the flagship product from STX – an oral therapy for adults suffering from iron deficiency with or without anemia.

A target price of 250p has been maintained on STX representing an increase of over 330% at the current price of the share.

By 2023, the broker is forecasting expected financials of £81.5m revenue with an adjusted EBITDA of £38.3m; compared to actual results of £10.4m and £1.3m respectively during 2020.

In a particularly upbeat note, the broker revealed it ‘wholeheartedly’ welcomes the new CEO appointment – claiming it is the exact experience it needed to make Accrufer’s launch in the US a success in June.

Current CEO Tim Watts will step down from 1 June but remain as an executive director until the end of September to ensure a seamless transition.

Highlighting the experience of Madison, finnCap looked to highlight his experience in the space and within the US in particular:

Greg is an experienced US pharmaceutical executive, with an excellent commercialisation track record and extensive knowledge and experience in the US iron deficiency market. He was (i) CEO of Keryx Biopharmaceuticals (2015-2018), where he led the transformation of the company from development stage to commercial stage focused on Auryxia (oral product for the treatment of hyperphosphatemia and iron deficiency anaemia) and ultimately leading to a merger with Akebia Therapeutics;

(ii) Chief Commercial Officer at AMAG Pharmaceuticals (2013-2014) where he was involved with Feraheme, a leading iv iron for iron deficiency anaemia;

and (iii) at Genzyme Corporation (2000-2012), where he ultimately served as VP and General Manager of its Nephrology Division, a
business with $1bn+ revenues, led by the world’s leading phosphate binder, Renagel/Renvela.

finnCap on CEO appointment

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