Diurnal Group - Smart Delivery

Following the recent full-year results, we published research this morning, updating our outlook for Diurnal Group.

The year to June 2021 was game-changing for the company, with its lead product Efmody approved in the UK and Europe. The significantly strengthened balance sheet allows Efmody’s development and commercialisation for both congenital adrenal hyperplasia (CAH) and adrenal insufficiency (AI) in Europe, and the ability to fund its Phase 3 CAH trial in the US. These combined Efmody/Chronocort opportunities target markets approaching $2.5bn. The endocrinology pipeline made further progress with the FDA agreeing to a streamlined regulatory pathway for DITEST, Diurnal’s oral testosterone replacement therapy. We believe DITEST could be a blockbuster product (sales greater than $1bn). Our research details these opportunities and highlights why we think Efmody should play a major role in the treatment of both CAH and AI. We also revisit DITEST following the 505(b)(2) classification and consequently a potentially faster route to marketing approval.

Our DCF yields a 241p per share valuation for Diurnal Group.

See our research note here.

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IMPORTANT:

Diurnal Group is a client of Calvine Partners, and as such, this publication is not independent and should be considered a marketing communication under FCA Rules. None of the information contained in this publication should be considered as any form of advice.

Link to full disclosures.