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Demant’s Q3 sales were largely in line with the market’s expectations. Double-digit growth in Hearing Healthcare was partly offset by weaker Communications. The 2023 guidance was narrowed. While MedTechs in general remain in a tricky situation, hearing aids are better-placed to sustain the healthy recovery momentum. Throw in the targeted improvements plus the benefits of innovative offerings and Demant remains a quality name in an uncertain MedTech sector.
Companies: Demant A/S (DEMANT:CPH)Demant A/S (DEMANT:CSE)
AlphaValue
Demant reported strong Q2 sales numbers, with robust growth in Hearing Healthcare being somewhat offset by weaker Communications. More importantly, besides the strong performance in H1 23, the 2023 guidance was upgraded to reflect the improving demand for hearing aids. Overall, with the favourable market dynamics and improving balance sheet strength – which supports the scenario of further inorganic bets – we maintain our positive recommendation on Demant.
Demant released a good set of Q1 results. The healthy momentum in the hearing aids market (also acknowledged by other firms in AV coverage) along with more bolt-on acquisitions were a validation of the underlying sector opportunities. While weakness could continue to persist in Communications, this isn’t a big problem as it accounts for a fraction of total sales. Overall, supported by the improving market dynamics for hearing aids and a strong product portfolio, our positive recommendation is ma
Demant reported strong preliminary Q1 23 sales numbers. Growth was driven by Hearing Healthcare, although this was partly offset by weaker Communications. Notably, newer product launches along with recovering demand (especially in the US) were key catalysts. the 2023 guidance was upgraded. Overall, with the promising market dynamics and banking on further inorganic bets, the Danish firm’s re-rating momentum is here to stay.
Demant reported strong Q4 22 results. Growth was driven by Hearing Healthcare, but partly offset by weaker Communications. Notably, despite difficult market conditions, the firm managed to report healthy results/organic growth. Moreover, the firm announced the launch of a new flagship hearing aid – which could be the most-important re-rating catalyst for Demant. Overall, the stock is worth a go at current levels.
Demant reported soft Q3 results. A slowdown in the US private pay market with a resulting guidance downgrade plus a pause in the share buy-back program has spooked the markets – with the stock collapsing c.13% today. Communications’ sustained vulnerabilities were an added concern. While the management has implemented cost reduction initiatives there is no visibility on new products (a key catalyst) and, hence, Demant is one of the least preferred hearing aid stocks in our coverage.
Demant reported soft Q2 results. While, like Sonova, the management also downgraded is full-year outlook, the brewing slowdown in the US hearing aid markets is a concern for the Hearing Healthcare segment. The underlying issues for Communications are an added complication. While the stock has seen a substantial sell-off in recent months (including yesterday), buying into the dip warrants caution in that there are no near-term share price catalysts.
Demant has made decent start to the year, driven by an impressive performance in the Hearing Healthcare segment, although this was partly offset by weaker Communications, due to tough comps and supply chain challenges. Importantly, the group has maintained its full-year outlook, despite the ongoing geo-political crisis. While Q1 sales were largely in line, our estimates should reset lower to reflect the divestment of the Hearing Implants business at a lower price. Hence, our cautious stance on t
Demant has witnessed positive momentum/recovery across most Hearing Healthcare sub-segments. While the negative H2 performance in Communications was a drag on 2021 and is guided to continue in Q1 22, the overall performance recovery is expected to remain on track. Even though stiff competition and other challenges warrant some caution and, hence, no further performance upgrade, the stock is currently trading at attractive levels/multiples, given the sell-off in recent weeks (including the post r
So far in H2, Demant has witnessed positive momentum/recovery across most hearing-related sub-segments. Particularly, Oticon More was able to gain market share in the VA channel and posted strong growth in the NHS as well. Although EPOS remained under pressure. 2021 adjusted EBIT guidance was increased marginally while top-line growth guidance was maintained. As our estimates are already on the higher side, we don’t expect any major changes and our cautious recommendation should be maintained.
Demant’s management targets aggressive mid-to-long-term growth. Besides a recovery in Hearing Healthcare, to also benefit via the Oticon More launch, the growth prospects in Communications seem promising. Strong FY21 guidance was reinforced. As a result, our estimates should reset higher. However, considering that competition is head-on with Sonova’s Paradise and there could be some near-term business/margin challenges (as already guided for Communications), our cautious stance should be maintai
Despite the deceleration in communications, Demant reported a sales beat in H1, benefiting from the hearing aids market recovery, the robust traction for new products and reform-related tailwinds in France. Strong sales growth combined with cost savings led to significant margin expansion. Anticipating the release in pent-up demand, the FY21 outlook has been upgraded with hearing healthcare to lead the pack. However, communications is likely to shrink in H2 and continued investments into R&D and
Year-to-date, Demant’s organic revenue has grown faster than management’s expectations with strong demand for Oticon More and Philips HearLink leading to market share gains in Hearing Aids. Also, Hearing Care benefited from a continued market recovery and strong growth in Europe. Given the ongoing trend of vaccination, particularly in the US, management anticipates pent-up demand in H2 and thus full-year sales and profitability targets have been upgraded. Share buy-back amount has also been rais
Driven by the strong recovery in hearing healthcare market and robust demand for its communications solutions, Demant returned to growth in H2 20, though sales were below the normal level. Interestingly, strict cost management bolstered profitability as well. Assuming the hearing market normalises in H1 21, management has set ambitious but risky targets for FY21 – pent-up demand for hearing solutions and the recently-launched Oticon More should be the key growth contributors. The DKK2bn share bu
Demant has launched a new product – Oticon More comes with an industry-first in-built Deep Neural Network (deep/ machine learning) which improves audiology performance. This is a multi-brand launch, allowing Demant to target a wider patient base and ensuring strong sales momentum into 2021. Nonetheless, given the stiff competition within the hearing aids industry, the new product is priced only marginally higher than the previous device as management’s focus is on market share gain.
Companies: Demant A/S
Research Tree provides access to ongoing research coverage, media content and regulatory news on Demant A/S. We currently have 10 research reports from 3 professional analysts.
Companies: BILN IGP RBN SBTX
Cavendish
Verici’s $8.2m gross raise means the company can now focus on scaling Tutivia and invest further into the development of existing and new products. With a uniquely well balanced Tutivia test, a growing sales team and LCD coverage expected later this year, we forecast Tutivia revenues of $2.6m/$4.5m in FY24E/FY25E. The Thermo Fisher deal was a huge validation of Clarava and Verici’s technology and in addition to licensing/milestone payments, we forecast double digit royalties on net Clarava sales
Companies: Verici Dx Plc
Singer Capital Markets
26th March 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object
Companies: BIRD MBH CHRT INSE KMK FNTL HDD JNEO CCS
Hybridan
SkinBioTherapeutics has reported on the 6-months to December 2023, noting steady revenue growth from lead product AxisBiotix-Ps, progress on the development of SkinBiotix with partner Croda (Sederma) and post-period end, the acquisition of Dermatonics. The company has updated on several positive developments through the start of 2024, including AxisBiotix Acne positive interim results, initiation of research on the MediBiotix Pillar and progress with the oral and inflammation programmes. The com
Companies: SkinBioTherapeutics Plc
Companies: CLBS GHH NANO TRX SAVE TMT GELN
The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (
Companies: TXG NDVA TSVT BCOW Z29 TXG NCYT GNS SUN AMS OMG APH EKF EAH IMM AGL DEMG AGY TSTL IPO GDR ETX TRX HVO CTEC AVO OXB DEST VLG IXI VAL INDV AGR AVCT BAI 123F IMCR BCOW
Hardman & Co
On 18th December 2023 Incanthera announced a deal with Marionnaud in Switzerland to distribute ‘Skin+CELL’, its advanced dermatological solution for the delivery of vitamin B3 for skin protection and cosmetic rejuvenation. This gives Incanthera access to a high-end cosmetics distribution presence in Europe, and in addition, ownership of Marionnaud by AS Watson, the largest cosmetics distributor in Asia, offers significant new market opportunities further afield.
Companies: Incanthera Plc
Stanford Capital Partners
FY EBITDA and EBIT came in materially above consensus FY EBITDA came in at EUR98.8m, down 4% yoy and 12% above consensus. The EBITDA margin was 12.6%. Restated for one-off costs, it was 13.1%, more than 2 percentage points above the guidance. It was fully explained by price increases, notably on X-ray, mix and control of fixed costs. FY EBITA came in at EUR38m, 46% above consensus. 2024 guidance looks conservative Guerbet is aiming for organic growth above 8% (8.8%e). With markets growing at
Companies: Guerbet (GBT:EPA)Guerbet SA (GBT:PAR)
BNP Paribas Exane - Sponsored Research
IRLAB Therapeutics has confirmed the FDA’s alignment with its proposed Phase III programme for mesdopetam in levodopa-induced dyskinesias (PD-LIDs), following receipt of the minutes from its end-of-Phase II (EoP2) meeting held last month. Notably, the FDA has agreed on the primary endpoint being the Unified Dyskinesia Rating Scale (UDysRS), on which mesdopetam demonstrated a statistically significant improvement (p=0.026) in the Phase IIb study (secondary endpoint of that study). IRLAB will now
Companies: Irlab Therapeutics Ab
Edison
Tissue Regenix has reported on strong performance through 2023, noting record revenues driven by product adoption and expanded distribution, positive adjusted EBITDA for the first time and an increased cash position versus H1/23. FY23 revenues grew 20% to $29.5m supported by 25% growth from BioRinse products and 17% growth from dCELL products. Significantly, Tissue Regenix reported its first adjusted EBITDA profit for the year, +$0.9m, supported by revenue growth and cost management. We expect t
Companies: Tissue Regenix Group plc
Creo Medical has published a trading update for the 12 months to December 2023, during which the company focused on commercialising its core technology. Revenue for the period increased 13% YoY to £30.8m, while the underlying operating loss improved to £16.4m. Operationally, during the period, the number of confirmed users of Creo’s Speedboat range more than doubled over the year, the first procedures with MicroBlate Flex to ablate lung tumours were performed and Creo expects to receive regulato
Companies: Creo Medical Group Plc
Companies: NTQ KMK JNEO DCTA
LungLife AI is a medical diagnostics company focused on the development of AI-supported blood-based tests for the early detection of lung cancer. It has identified a significant medical need for non-invasive, sensitive and specific tests in early-stage lung cancer. The company’s core technology, the LungLB test, seeks to detect circulating tumour cells (CTCs) to identify malignant lung nodules. It aims to apply machine learning/AI (ML/AI) to derive algorithms to increase test accuracy. Following
Companies: LungLife AI, Inc.
Companies: Warpaint London PLC
Shore Capital
Evgen Pharma has acquired Chronos Therapeutics Ltd for a total upfront consideration of c£0.9m, payable in Evgen shares. Accompanying this, Evgen has conditionally raised gross proceeds of £0.85m through an equity placing with the potential to raise a further £1.0m through a retail open offer and additionally up to £2.0m. The proceeds will fund several initiatives including maintenance of the acquired Chronos Therapeutics patent portfolio and to continue support manufacturing for lead clinical a
Companies: Evgen Pharma Plc
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