Research Report

Avanir Pharmaceuticals, Inc. (AVNR)

April, 24, 2014

Avanir Pharmaceuticals, Inc. (AVNR)

Executive Summary: Industry Characteristics: strongly related to patents; rare competitors; less bargaining power of customers; subdivided and specialized industrial trend. Key Drivers: NUEDEXTA market penetration, Optinose (AVP-825) launch in next year.

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AVNR Industry: Healthcare, Drug-Genetic Rating: BUY Price Target: $5.00 Price Performance 52-Week Range: 2.62-6.00

Historical Revenue

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Financial Metrics: Operating margin of 2013 is -94.77% which is 46.73% higher than it of 2012. However operating

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SMAVG (15)

margin growth rate is higher than peers. Valuation: The target price for Avanir 2014 is $5.00 by using FCFE and Relative Multiple Valuation. Risk: Certain key issued patents covering NUEDXTA are currently challenged; no assurance that FDA will approve AVP-825. Company Background: Avanir Pharmaceuticals, Inc. is a biopharmaceutical company focuses on bringing innovative medicines to patients with central nervous system disorders of high unmet

Valuation Metrics: Market Cap: 526.94M Enterprise Value: 512.51M Price/Sales: 6.09 Xia Wang MBA-Financial Management Candidate at Pace University 551-580-5511 xw55429n@pace.edu

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Avanir Pharmaceuticals, Inc. (AVNR)

April, 24, 2014

medical need. As part of its commitment, the company has been extensively invested in pipeline and is dedicated to advancing medicines that can substantially improve the lives of patients and their loved ones. NUEDEXTA is Avanir’s leading product which is the first and only FDA-approved treatment for Pseudo Bulbar Affect (PBA). Avanir’s nearterm prospects depend on the...