The reduction in Carbios’ (PA:ALCRB) operating losses in the first half of 2017 is positive. It was driven by revenue from Carbiolice for part of the period and the fall in external costs from the scheduled conclusion of the Thanaplast programme. The announced five-year partnership with L’Oréal shows confidence in Carbios’s technology. We have adjusted our DCF valuation range per share to €20-32 to reflect the latest capital markets activity.
Transition under way
The first half of 2017 and the following couple of months have seen a number of important developments. To some extent, they mark a step forward into a new stage of development in the company from a pure scientific play to market ready IP. The moves embrace a new deputy CEO, the planned ending of the Thanaplast R&D programme, the first significant revenues from the Carbiolice joint venture and two major financing moves. There has been no change in the company’s strategic scientific and commercial roadmap, which it is pursuing from a strengthened financial position. The announcement of a five-year partnership with L’Oréal, while at a pre-pilot stage, marks an important milestone in the commercial exploitation of Carbios’s PET technology.
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