ERYTech: H1 15 loss higher than expected. But towards a US listing and the frontline setting in ALL… What else ?

The H1 15 loss is wider than anticipated, mainly due to a faster-than-expected progression of R&D expenses. Apart from this, we note that the company is effectively planning to initiate new trials to expand its reach to the first-line in ALL. This is clearly good news as we think the company will not only expand its addressable patient population, but also benefit from a favourable basis of comparison in terms of pricing (Erwinaze cost of treatment ranging from USD100,000 to 150,000). Also, we wonder if management is not considering a standalone strategy in the US given the very limited salesforce it would need. BUY reiterated with a FV of EUR42, while keeping in mind that this number should evolve once we have more details on the company’s strategy.

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