Quick Update on Medexus Investment Case

No news this week, but I’m in the process of writing an updated investment case on the stock. Quick pitch is the following. MEDXF trades 1.0x LTM revenue and 6.1x LTM EBITDA. It is growing revenue (10% y/y in the last quarter) and profitability should improve over time. It’s generating significant free cash flow that is being used to pay down debt. The company is very good at finding accretive in-licensing deals that require little cash upfront. The FDA should share whether it has accepted medac’s updated application for Treosulfan this spring. If the FDA accepts the submission, it will make a decision within 6 months. If treosulfan is approved, it would be transformational for Medexus. If it’s not approved, Medexus will still be able to grow through organic growth and other licensing deals.