News that regulators are taking longer than expected to clear some of Quantum Pharma’s (QP.:AIM) treatments for sale wiped 5% off the value of the company on Thursday. The niche drug-developer saw its share price slump to 141p as investors ditched the stock on fears that analysts will slash forecasts if treatments do not start generating revenues to plan.
But that looks like a hasty reaction judging by early comments from the company and analysts. Management remains optimistic that Quantum will still meet market expectations for the year to 31 January 2016, and N+1 Singer analyst Chris Glasper does not believe the set back is anything to worry about.
‘Some small delays have been experienced in launching new licensed products, but we understand it is still a case of when, not if, these products will hit the market and are not overly concerned at this stage.’
North East-based Quantum’s acquisition strategy has built a pipeline of more than 70 licensed products and medical devices, 16 of which are awaiting regulatory approval. This figure is forecast to almost double to 28 by the end of the year.
Quantum is on course to launch 11 products this year – two have been approved so far – even if N+1 Singer had 17 pencilled in for this stage. But the broker is so far resisting any urge to change its forecasts 'at this stage.'
Quantum Pharma’s interims are due on October 20, which may provide a better gauge as to the company's near-term future.