SIGA Technologies — Q221 results

SIGA Technologies (NASDAQ: SIGA)

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Research: Healthcare

SIGA Technologies — Q221 results

SIGA recently reported Q221 results, which featured $6.9m of revenue for the delivery of oral TPOXX to the Public Health Agency of Canada (PHAC). SIGA continues to work towards finalizing an order from an additional jurisdiction though timing is unknown due to the COVID-19 pandemic. The company has indicated that the size of this order would be similar to the initial orders received from Canada in 2020 and early 2021 (approximately $2.3m in 2020 and $3.4m in Q121).

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Written by

Healthcare

SIGA Technologies

Q221 results

Financial update

Pharma & biotech

10 August 2021

Price

US$6.3

Market cap

US$473m

Net cash ($m) at 30 June 2021

98.5

Shares in issue

75.1m

Free float

55.3%

Code

SIGA

Primary exchange

Nasdaq

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

4.1

(14.6)

(6.3)

Rel (local)

2.3

(19.7)

(29.6)

52-week high/low

US$7.8

US$5.7

Business description

SIGA Technologies is a commercial-stage health security company focused on the treatment of smallpox and other orthopoxviruses. It has contracts with both the US and Canadian governments for TPOXX, its treatment for smallpox, and is looking to expand internationally.

Next events

Additional international deal

2021

Canadian regulatory approval

Late 2021/early 2022

EMA regulatory approval

Late 2021/early 2022

Analysts

Maxim Jacobs

+1 646 653 7027

Jyoti Prakash

+91 981 880 393

SIGA Technologies is a research client of Edison Investment Research Limited

SIGA recently reported Q221 results, which featured $6.9m of revenue for the delivery of oral TPOXX to the Public Health Agency of Canada (PHAC). SIGA continues to work towards finalizing an order from an additional jurisdiction though timing is unknown due to the COVID-19 pandemic. The company has indicated that the size of this order would be similar to the initial orders received from Canada in 2020 and early 2021 (approximately $2.3m in 2020 and $3.4m in Q121).

Year end

Revenue ($m)

PBT*
($m)

EPS*
($)

DPS
($)

P/E
(x)

Yield
(%)

12/19

26.7

(15.3)

(0.15)

0.0

N/A

N/A

12/20

125.0

82.0

0.82

0.0

8.9

N/A

12/21e

119.2

74.2

0.74

0.0

9.7

N/A

12/22e

124.4

78.9

0.80

0.0

9.2

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Additional international sales order in the works

SIGA is partnered with Meridian Medical Technologies, a Pfizer subsidiary focused on health security, for the international marketing of TPOXX. So far two separate contracts with the Canadian government for the delivery of up to $47m worth (combined) of TPOXX have been signed and the companies are working on other markets. SIGA is currently working on an order from an additional jurisdiction though precise timing is unknown due to COVID-19.

Monkeypox outbreak highlights the need for TPOXX

Three members of one family were diagnosed with monkeypox in the United Kingdom in May and June. Subsequently, a case was diagnosed in the United States in July and made headlines as 200 people were subsequently being monitored for monkeypox (no additional infections have been identified). The source of both outbreaks was Nigeria. SIGA has indicated that the monkeypox outbreak has highlighted the need for national stockpiles among various governments for treatments for orthopoxviruses.

Additional $50m stock repurchase plan

The company has announced an additional $50m stock repurchase plan, which will come into effect once the current $50m stock repurchase plan either expires (as it is scheduled to at the end of 2021) or is exhausted (approximately $42m has been repurchased to date). The new plan would expire at the end of 2023.

Valuation: $949m or $12.65 per share

We have adjusted our SIGA valuation from $957m or $12.58 per share to $949m or $12.65 per share. The decline in the total valuation is due to lower net cash, mainly attributable to the stock buyback, while a lower number of outstanding shares has increased the per-share valuation.

Waiting on US deliveries

SIGA recently reported Q221 results, which featured $6.9m of international revenue for the delivery of oral TPOXX to Canada to PHAC. Total revenues were $8.7m for the quarter. We reiterate the timing of TPOXX deliveries can fluctuate significantly, which has created volatility and lumpiness with SIGA’s revenues in the past. The company continues to expect that US deliveries will be concentrated in the second half of the year due to government procurement and budget schedules as well as due to a new administration, as new political appointments take time to appoint and confirm. On a positive note, the key role of assistant secretary of preparedness and response (ASPR) has been filled with the swearing in of Dawn O’Connell at the end of June following her Senate confirmation on 24 June. With this position now filled the company expects to see some movement on US deliveries.

Exhibit 1: SIGA pipeline

Program

Region

Formulation

Indication

Status

TPOXX

US

Oral

Treatment of smallpox in those weighing >13kg

FDA approved 2018. $461m BARDA procurement contract (part of 2018 BARDA re-supply contract)

Canada

Oral

Treatment of all human pathogenic orthopoxviruses (smallpox, monkeypox, cowpox, vaccinia) in those weighing >13kg

$33m contract with Public Health Agency of Canada and a $14m contract with the Canadian Department of National Defence. Regulatory approval expected in late 2021/early 2022

US

IV

Treatment of smallpox in those too sick or unable to swallow capsules

$85m worth of procurement in 2018 BARDA contract. NDA filed in April 2021

US

Liquid (powder for re-constitution)

Treatment of smallpox in people weighing <13kg (children)

Currently being formulated. Development fully funded by BARDA

US

Oral

Post-exposure prophylaxis (PEP)

Up to $26m contract with the US Department of Defense signed in 2019 (expanded in 2020) for research in PEP. Two human studies planned, one to evaluate if there is interference with the Jynneos smallpox vaccine and an expanded safety study

EU

Oral

Treatment of all human pathogenic orthopoxviruses (smallpox, monkeypox, cowpox, vaccinia) in those weighing >13kg

MAA submission July 2020. Approval expected end of 2021 or early 2022.

ST-357

All

Oral

Treatment of smallpox

Distinct mechanism of action from TPOXX and may be more broadly active. Target conserved in all chordopox viruses (orthopox, molluscum contagiosum, cervidpox). In preclinical testing

ZEMDRI

US

IV

Biodefense

Partnership with ZEMDRI’s manufacturer Cipla was announced in March 2021. SIGA will help Cipla obtain a BARDA contract for a biodefense indication

Source: SIGA Technologies

The company is continuing to work towards sales in additional jurisdictions with an order currently being finalized, though precise timing is uncertain. SIGA is partnered with Meridian Medical Technologies, a Pfizer subsidiary focused on health security with a 50-year history of selling medical countermeasures globally, for the marketing of TPOXX outside the US. Other products marketed by Meridian include an antidote treatment for organophosphorus nerve agents such as Sarin and VX, and a treatment for cyanide poisoning, among others.

So far two separate contracts with the Canadian government for the delivery of up to $47m (both contracts combined) worth of TPOXX have been signed and the companies are working on other markets. We believe SIGA and Meridian are focusing on key US allies, such as Europe, Australia, Japan and South Korea, and that SIGA will seek partnerships for other territories. The company has stated that once EMA approval is obtained (currently expected at the end of 2021 or in early 2022), sales discussions t7yEuropean jurisdictions may accelerate.

SIGA has stated that the recent monkeypox cases in the US and UK have highlighted the need for national stockpiles to treat orthopoxviruses. Three members of one family were diagnosed with monkeypox in the United Kingdom in May and June. Subsequently, a case was diagnosed in the United States in July (the first in the United States since 2003) and made headlines as 200 people were subsequently being monitored for monkeypox (no additional infections have been identified). The source of both outbreaks was Nigeria where the most recent outbreak started in 2017. According to the World Health Organization, nine other central and west African nations have reported outbreaks since 1970. In 2020, 6,200 suspected cases were reported in the Democratic Republic of Congo. As a reminder, TPOXX is approved for the treatment of smallpox in the United States but does show efficacy against other orthopoxviruses like monkeypox. Three of the pivotal trials used for TPOXX approval investigated the treatment of monkeypox in cynomolgus macaques. Also, TPOXX was recently used on a compassionate use basis to treat one of the patients with monkeypox in the UK. Additionally, in July, the company announced a collaboration with Oxford University to treat monkeypox in the Central African Republic.

Exhibit 2: TPOXX animal study data – treatment at day four

Cynomolgus macaques study

Survival TPOXX

Survival placebo

P value

Study 1

80%

0%

0.0038

Study 2

100%

0%

0.0002

Study 3

83%

0%

0.0151

Source: TPOXX FDA label

Valuation

We have adjusted our SIGA valuation from $957m or $12.58 per share to $949m or $12.65 per share. The decline in the total valuation is due to lower net cash, mainly attributable to the stock buyback, while a lower number of outstanding shares has increased the per-share valuation.

Exhibit 3: SIGA valuation table

Product/program

Main indication

Status

Probability of Success

Approval/launch/first contract year

Peak sales ($m)

rNPV
($m)

TPOXX (US base - Oral)

Treatment of smallpox

On market

100%

2018

113

442

TPOXX Canada

Treatment of smallpox

On market

100%

2020

11

35

TPOXX US IV and pediatric formulations

Treatment of smallpox

IV (to be filed 2021), pediatric (being formulated)

60-90%

2022-2025

30

36

TPOXX US PEP

Post-Exposure Prophylaxis following exposure to smallpox

Development

40%

2025

225

264

TPOXX EU, Japan, Korea, Australia

Treatment of smallpox

Registration

50%

2023

97

74

Total

 

 

 

 

 

851

Net cash (Q221) ($m)

98.49

Total firm value ($m)

949

Total basic shares (m)

75.1

Value per basic share ($)

$12.65

Source: Edison Investment Research

Financials

Following Q221 results, we have kept our forecasts for SIGA largely the same, though we did increase our SG&A estimate by $1.1m in 2021 and $1.2m in 2022, mainly due to a higher run rate. SIGA reported $98.5m in cash at the end of June and is profitable (although profitability for any specific period will depend on the timing of government orders and payments).

SIGA is currently working through a $50m stock repurchase program ,which was announced in March 2020 and runs through the end of 2021. So far, 6.5m shares have been repurchased for approximately $42m, including $6.5m in Q221. The company has announced an additional $50m share repurchase program, which will run through the end of 2023. Shares under the new plan can be repurchased once the current plan either expires or once the maximum amount has been utilized.

Exhibit 4: Financial summary

$000s

2019

2020

2021e

2022e

Year end 31 December

US GAAP

US GAAP

US GAAP

US GAAP

PROFIT & LOSS

Revenue

 

 

26,742

124,959

119,172

124,411

Cost of Sales

(1,783)

(14,797)

(15,696)

(15,956)

Gross Profit

24,959

110,162

103,476

108,455

Research & Development

(13,303)

(10,939)

(10,985)

(11,095)

General & Administrative

(13,978)

(14,722)

(18,312)

(18,496)

EBITDA

 

 

(27)

84,503

74,098

78,334

Operating Profit (before amort. and except.)

 

 

500

85,033

74,228

78,864

Intangible Amortisation

0

0

0

0

Other

2,822

532

50

0

Exceptionals

5,091

(8,507)

1,361

0

Operating Profit

5,591

76,525

75,589

78,864

Net Interest

(15,770)

(3,017)

0

0

Other

0

0

0

0

Profit Before Tax (norm)

 

 

(15,270)

82,016

74,228

78,864

Profit Before Tax (reported)

 

 

(10,178)

73,509

75,589

78,864

Tax

2,937

(17,167)

(18,345)

(18,927)

Deferred tax

0

0

0

0

Profit After Tax (norm)

(12,332)

64,849

55,883

59,937

Profit After Tax (reported)

(7,241)

56,342

57,244

59,937

Average Number of Shares Outstanding (m)

81.0

79.3

75.7

75.1

EPS - normalised ($)

 

 

(0.15)

0.82

0.74

0.80

EPS - reported ($)

 

 

(0.09)

0.71

0.76

0.80

Dividend per share ($)

0.00

0.00

0.00

0.00

Gross Margin (%)

93.3

88.2

86.8

87.2

EBITDA Margin (%)

-0.1

67.6

62.2

63.0

Operating Margin (before GW and except.) (%)

1.9

68.0

62.3

63.4

BALANCE SHEET

Fixed Assets

 

 

18,524

6,223

6,642

6,692

Intangible Assets

898

898

898

898

Tangible Assets

2,618

2,104

2,619

2,669

Other

15,008

3,221

3,124

3,124

Current Assets

 

 

180,042

143,608

183,915

245,984

Stocks

0

0

0

0

Debtors

4,168

3,340

4,001

4,001

Cash

160,987

117,890

157,553

219,622

Other

14,887

22,378

22,361

22,361

Current Liabilities

 

 

(91,736)

(10,484)

(7,970)

(7,970)

Creditors

(3,054)

(1,278)

(675)

(675)

Short term borrowings

(80,045)

0

0

0

Other

(8,637)

(9,205)

(7,295)

(7,295)

Long Term Liabilities

 

 

(9,047)

(9,555)

(9,555)

(8,128)

Long term borrowings

0

0

0

0

Other long-term liabilities

(9,047)

(9,555)

(9,555)

(8,128)

Net Assets

 

 

97,784

129,793

173,032

236,577

Minority Interests

0

0

0

0

Shareholder equity

 

 

97,784

129,793

173,032

236,577

CASH FLOW

Operating Cash Flow

 

 

(18,204)

71,519

52,853

62,118

Net Interest

0

0

0

0

Tax

0

0

0

0

Capex

(29)

(16)

(47)

(50)

Acquisitions/disposals

0

0

0

0

Financing

0

0

0

0

Dividends

0

0

0

0

Other

(5,674)

(28,687)

(13,143)

0

Net Cash Flow

(23,907)

42,817

39,663

62,068

Opening net debt/(cash)

 

 

(104,849)

(80,942)

(117,891)

(157,554)

HP finance leases initiated

0

0

0

0

Exchange rate movements

0

0

0

0

Other

0

(5,868)

0

(0)

Closing net debt/(cash)

 

 

(80,942)

(117,891)

(157,554)

(219,622)

Source: Company reports, Edison Investment Research

General disclaimer and copyright

This report has been commissioned by SIGA Technologies and prepared and issued by Edison, in consideration of a fee payable by SIGA Technologies. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

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New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

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Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

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London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by SIGA Technologies and prepared and issued by Edison, in consideration of a fee payable by SIGA Technologies. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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Research: Real Estate

Primary Health Properties — Positively as expected

As may be expected from Primary Health Properties’ (PHP) robust business model and the essential role that its assets play in supporting the delivery and modernisation of primary healthcare provision in both the UK and Ireland, H121 results provided few surprises. The existing portfolio performed well, and while acquisition activity was light amid a highly competitive investment market, progress was made with rent reviews and asset management projects, forward-funded developments and the recently acquired direct development pipeline.

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