Morgans released an updated research report on Wednesday and...

Morgans released an updated research report on Wednesday and they remain very upbeat on QRX's chances of gaining FDA approval for immediate release moxduo.

They believe there is an 80% chance of QRX recieving an NDA for the drug in late may 2014, with first sales to begin by September. While they have pushed back the expected approval of controlled release moxduo and Intravenous moxduo by 12 months due to regulatory delays experienced earlier this year. They are expecting first royalty payments to begin at the start of CY2015, while they note that the company is due to receive payment from their production partners coincidental with the attainment of the NDA for moxduo (may 2014 in the US).

They have a 12 month price target of $1.78, although this is discounted by 45% to reflect the risk of the drug not being approved. This makes their fair value estimate $3.42/share, which is roughly 470% higher than today's close of $0.60/share.

Forecast earnings are -8.3c/share for fy2014, 15c/share for fy2015 and 74.5c/share for fy2016. While they are not yet modelling a dividend for that period, that would put them at a p/e of 0.8 based on the current share price!