|The PlarityTE (PTE) Enigma|
The Diabetic Foot Ulcer (DFU) Total Addressable Market (TAM) is projected to be $11 billion/year by 2026.
The Venus Leg Ulcer (VLU) TAM is projected to be $5 billion by 2026.
The burn TAM is projected to be $3 billion by 2026.
The TAM for these three treatments $19 billion – per year.
Given the possibility that PTE’s SkinTE could become the Standard of Care for all three of these markets, let’s assume that PTE could achieve 15% annually of those markets.
That projects to $2.85 billion annual revenues.
PTE currently has a market cap of $34.9 million, with roughly 38.4 millions shares issued and outstanding.
If a larger pharmaceutical company was willing to buy PTE at a price equal to the projected revenues in 2026 ($2.85 billion) the acquisition cost would be roughly $74 per share.
The stock closed on Friday, May 8, 2020 at $0.91 per share.