Redeye is surprised by the news that an advisory panel has suggested changed classification of I-Tech’s substance Selektope, during its re-registration process in the EU. The near-term financial effects are limited as the EU market represents less than 5% of sales. Even though the process is still a few years from being settled, where I-Tech has several opportunities to make its case, we expect to reduce our medium to long-term estimates, as we see possibilities of spillover effects to the key markets. We also expect to reduce our base case valuation in an upcoming update.
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