SeeThruEquity Initiates Coverage on Peak Pharmaceuticals (OTCQB: CTCO) with Price Target of $1.26
NEW YORK, NY / ACCESSWIRE / January 28, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has initiated coverage of Peak Pharmaceuticals (CTCO) with Price Target of $1.26.
“In our estimation Peak Pharmaceuticals, Inc. offers an intriguing way to invest in the cannabis market – a market with high growth potential that has been attracting attention recently due to efforts to expand legal uses of cannabis in the United States. What we like about Peak Pharma relative to other companies in this industry is that it is ready to hit the market now with safe, legal products for animals and humans. In fact, the company released its pet products in time for Christmas, and indicated that initial results bested internal projections,” stated Ajay Tandon, CEO of SeeThruEquity. “We see material growth potential for Peak Pharma in the upcoming quarters and are initiating coverage with a 12-month price target of $1.26 per share.”
The report is available here: Peak Pharma Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Additional highlights from the report are as follows:
Nutraceuticals a large initial opportunity
Peak Pharma will initially develop hemp-based nutraceutical products for animals and humans. This strategy should allow the company to pursue a fast and cost-effective path to market. We see this as differentiated versus many peers in the industry, and note that Peak Pharma has already released its first products in the animal health space under the CannaPet brand.
In 2015E, we expect the company to expand this line of products – initially targeted at dogs and cats – and also to launch a series of nutraceuticals for humans. Management has indicated that it believes these businesses can reach positive cash flow at the end of 2015E, which will enable the company to invest the cash flow into future product development of pharmaceutical products.
Large market opportunity
There are wide-ranging estimates for the size of the cannabis industry in the United States, but all agree that it is a large market with immense potential. One market sizing estimate by Greenwave Advisers forecasts that legal cannabis revenues could grow from $1.3Bn in 2013 to reach of $35bn by 2020 if marijuana is legalized at the federal level. According to a report from Transparency Market Research, the global market for nutraceutical products is expected to grow from $142Bn in 2011 to reach $204.8Bn by 2017E, growing at an annual rate of 6.5%.
Cannabis has a long history of being used medically to relieve symptoms of pain, nausea, anorexia, muscle stiffness, bladder dysfunction and a range of sleep, pain and psychological disorders, making it likely to be a good source of health supplements in the nutraceutical market for humans. The nutraceutical market for pets is surprisingly large as well. According to a report from Packaged Facts, the market for pet dietary supplements and nutraceuticals in the US is expected to reach $1.6Bn by 2017E. The report cites aging as the core market driver as more pets suffer from age-related conditions such as joint deterioration and cognitive dysfunction, conditions that could be addressed by Cannabis, in our view. Longer term, given the strong biotechnology backgrounds of its management team, we see opportunity for Peak Pharma to develop compounds and drug candidates from proprietary hemp strains.
Please review important disclosures on our website at www.seethruequity.com.
About Peak Pharmaceuticals, Inc.
Peak Pharmaceuticals, Inc. specializes in the development, manufacturing, sales and marketing of pharmaceutical-grade, hemp-based nutraceutical and supplement products for the human and animal health markets. The company aims to become a global leader in the research, development, sales and marketing of medicinal hemp and cannabinoid products. For more information visit www.peakpharma.com.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
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