Q: Under the "lottery ticket" portion of my portfolio I own SVA, they announced a deal with EVO. RBC has no information on EVO, what can you tell me about EVO, thoughts on the deal?
5i Research Answer:
EVO is based in Germany, so not one we know well. It is a drug discovery company, market cap about $5B, with $300M cash and a revenue base of about $700 Euros annually. The deal allows SVA to licence EVO's beta cells to treat Types I and II diabetes. We would consider it good for SVA, but we would keep in mind that EVO signs lots of deals of this type, so we would not read too much into it. But it is a global licence and allows SVA a chance to develop its solutions faster.