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SeeThruEquity Issues Update on Innovus Pharmaceuticals and Raises Target Price to $0.80

NEW YORK, NY / ACCESSWIRE / October 25, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update note on Innovus Pharmaceuticals, Inc. (INNV) with a Target Price of $0.80.

The report is available here: October 2018 Update Note.

Innovus Pharmaceuticals, Inc. (OTCQB: INNV, "Innovus") is a fast-growing commercial stage pharmaceutical company that delivers safe, innovative and effective over-the-counter (OTC) medicine and consumer care products to improve men and women's health, respiratory disease and vitality. Led by CEO Dr. Bassam Damaj, Innovus is based in San Diego, CA and has demonstrated robust growth in its product offerings and annual revenues since we initiated coverage on the company in September 2014. Innovus revenues have grown from approximately $1.0mn in 2014 to $8.8mn in 2017 and guidance of at least $23mn in revenues in 2018.

We are updating coverage of Innovus following its announcement to enter the hemp-derived (cannabinoid) CBD market. Innovus has already established a growing sales and distribution network selling over-the-counter medicine and consumer care products for men's and women's health and respiratory disease, and the addition of a new line of CBD products is a natural extension of the company's strategy, which should promote sales growth in 2019 and beyond.

  • First CBD product to launch in 4Q18. Innovus announced on October 18, 2018 that the company would launch a new line of hemp-derived CBD products beginning in 4Q18.
  • The move to offer CBD products is a natural extension of the company's innovative distribution model, which already supports a $20mn+ annualized revenue base for OTC and consumer care products.
  • Significant expansion into multi-billion dollar market. We note that expectations are robust for the hemp-CBD products, which offer perceived health benefits of cannabis without the psychological effects of tetrahydrocannabinol (THC). Indeed, September 2018 research from The Brightfield Group suggests the global hemp-CBD market could grow from $5.7 billion in 2019 to reach $20 billion by 2022.
  • First CBD product to be MZS Sleeping Aid™ combining melatonin with benefits of CBD. INNV's first product including CBD will be the MZS Sleeping Aid™, a sleep supplement in tincture form delivering a 3mg dose of melatonin per serving that incorporates either 100mg or 250mg of hemp-derived CBD oil. Melatonin is well-established as a supplement for sleep disorders, and, in our view, the addition of CBD represents a refreshing reintroduction of the supplement with the potential for broad appeal in the multi-billion dollar market for sleep $2.18 billion market for sleep insomnia (Grand View Research, 2018).
  • We note that INNV has already established itself as a high growth company in the OTC / consumer care market, with an existing base of seven core products generating over $1mn in revenue per year. The company raised its full year outlook to "at least $23mn" in revenue following 2Q18 results, which implies an increase of 2.5x versus FY2017.

Increasing target to $0.80 for Innovus

Our target increases to $0.80 for Innovus following the company's entry into the CBD market. We view INNV as a high growth company with several catalysts ahead as the company increases the number of products in its pipeline to include CBD while expanding its sales channels and geographic presence. The target represents a multiple of 7.2x FY2018E revenues of $23mn and 4.5x our 2019E estimate of $35.9mn.

Please review important disclosures in the report and on our website at www.seethruequity.com.

About Innovus Pharmaceuticals, Inc.

Headquartered in San Diego, Innovus Pharma is an emerging OTC consumer goods and specialty pharmaceutical company engaged in the commercialization, licensing and development of safe and effective non-prescription medicine and consumer care products to improve men's and women's health and vitality and respiratory diseases. Innovus Pharma delivers innovative and uniquely presented and packaged health solutions through its (a) OTC medicines and consumer and health products, which we market directly; (b) commercial partners to primary care physicians, urologists, gynecologists and therapists; and (c) directly to consumers through our on-line channels, retailers and wholesalers. The Company is dedicated to being a leader in developing and marketing new OTC and branded Abbreviated New Drug Application ("ANDA") products. The Company is actively pursuing opportunities where existing prescription drugs have recently, or are expected to, change from prescription (or Rx) to OTC. Innovuspharma.com

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.

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SOURCE: SeeThruEquity