Pilulka's Market Expansion and Innovation
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ABSTRACT FROM RESEARCH REPORT
The research report was prepared by Jiří
Staník of Helgi Analytics ("Analyst"). The Helgi Library.
Analyst is authorized by the Prague Stock
Exchange
The Analyst determined the value of the Company based on:
Revenues multiple of comparable traded companies
Discounted cash flow (DCF)
a)
b)
The revenues multiple of comparable companies in Western
Europe implies a valuation of Pilulka at CZK 555-676 per share
However, unlike Pilulka, Shop Apotheke Europe and DocMorris
operate on markets where gradual deregulation of online sale of
prescription drugs is being implemented - these companies are
thus able to cannibalize the traditional brick-and-mortar pharmacy
market more quickly and achieve faster and more profitable
growth. To account for these differences, the Analyst applies a
20% discount to the above valuation based on revenues
multiples of comparable companies the resulting valuation
implies a value of Pilulka in the range of CZK 444-541 per
share
-
The valuation based on discounted cash flows indicates a value
of the Company at CZK 450-550 per share. Assuming gradual
deregulation of online prescription drugs sales after 2027 on
already penetrated markets, the Analyst assumes a current
value of Pilulka at CZK 580-680 per share
Comparison of the outputs of different valuation
techniques used by Analyst
Valuation per Pilulka's share (in CZK), assuming successful execution
of the SPO and delivery of the indicated business plan (1)
Comparable companies
Revenues multiple (2)
Comparable companies
Discounted revenues
multiple (2)
-
Discounted cash flows
(DCF)
400
500 | 600
700
The comparable traded companies
are a) Shop Apotheke Europe, b)
DocMorris (formerly Zur Rose
Group) and c) Talea Group
Shop Apotheke Europe and
DocMorris operate on markets where
gradual deregulation of online sale
of prescription drugs is being
implemented (Germany, Switzer-
land, the Netherlands, etc.)
If we use revenues multiples of peers
as a "benchmark", the value of
Pilulka would be in the range of
CZK 555-676 per share
Given the lack of a legal framework governing the
online sale of prescription drugs in the markets where
Pilulka operates and other business model related
differences, the Analyst applied a discount of 20% to
the above valuation based on revenues multiple of
comparable companies
The basis for the DCF valuation is the business
plan until 2026 prepared by the Company's
management. The period 2026 to 2032 is forecasted
by the Analyst according to his own assumptions
The light pink rectangle indicates the upside potential
of ca CZK 130 per share following the gradual
deregulation of online prescription drugs sales after
2027 in the markets where Pilulka operates
Note: (1) The amount of funds raised from the SPO, net of transaction costs, should amount to at least CZK 236m
(2) Valuation range based on average EV / revenues of Shop Apotheke Europe, DocMorris and Talea Group between 2023 and 2026
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