Nomura Instinet analyst Christoper Marai believes Mallinckrodt’s (MNK) $18 per share deal to buy Sucampo Pharmaceutals (SCMP) “substantially” undervalues the latter, noting that he attributes $29 per share in value to its Phase 2/3 asset VTS-270 for Niemann-Pick Disease Type C1 alone.

The low deal price could create interest from other parties, though his talks with investors lead him to believe Sucampo is “fundamentally misunderstood” and that VTS-270 is under the radar, Marai tells investors.

Marai maintains a Buy rating and $43 price target on Sucampo shares.