Healthy Q3; guidance upgraded ‘again’

The Q3 results topped expectations, with strong growth witnessed across the targeted therapeutic areas. Consequently, the management upgraded its 2023 guidance for the third time this year. The ytd gain in the Novartis share price (amongst the top performing AV Big Pharmas) could see further support in the event that the company continues to utilise its balance sheet strength to pursue inorganic opportunities, especially considering the cardiovascular drug Entresto’s upcoming patent expiries. Ov

Momentum sustained in Q2; another guidance upgrade

Novartis exceeded the street’s expectations in the Q2 23, driven by strong growth in Cardiovascular, Oncology and Neuroscience, which more than compensated for Immunology’s soft quarter. Consequently, the full-year guidance was upgraded ‘again’. Given the dearth of suitable acquisition targets, the firm announced $15bn of share buybacks. Overall, Novartis remains a beneficiary of the healthy growth prospects in its target areas, and a cash-rich balance sheet, which also underpins our positive st

Q1 beat, guidance upgraded, re-rating to continue

Novartis’ Q1 results were ahead of the street’s expectations, with solid performances across all franchises, except Immunology, for which a weaker quarter was largely expected. Given the strong Q1 momentum, 2023 guidance was upgraded. Moreover, despite the share price rally in the last one month, we reaffirm our positive recommendation for Novartis, underpinned by the healthy growth prospects in its targeted areas and a sturdy balance sheet, which paves the way for inorganic growth options as we

Hardman & Co Monthly: April 2023

Feature article: 2022 Pharma Statistics - 8.7% growth – but worrying signs An efficient reporting system has seen all the listed multinational pharmaceutical companies announcing results for 2022, which has given us the opportunity to update our industry statistics and drug database. This report provides the first snapshot of the global and US rankings of the top 20 drug companies for 2022. 2022 was characterised by 8.7% underlying growth, offset by a large forex impact (-12%), due to USD stren

Novartis AG: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (02/23)

Novartis delivered a mixed set of results for the last quarter as it failed to meet the revenue expectations of Wall Street but managed an earnings beat. The management continued to invest in the organic business, pursued value-creating bolt-ons, and looked at the full range of M&A opportunities. Their Phase III APPOINT research continues to progress well. Afterward, they moved forward with various indications, including IgAN and C3G, which is anticipated to read out in 2023. To further extend t

Mixed Q4, but targeted improvements hold the key

Novartis’ Q4 sales fell short of street expectations, although profitability improvements were noteworthy. The strong performances in Oncology and Cardiovascular were partly offset by weaker dynamics in Immunology and Neuroscience. Generics continued to face pricing pressure. Overall, the continuation of healthy growth for the newer crop of drugs, pipeline execution and ‘all-important’ profitability improvements remain the key for the firm’s much-awaited re-rating.

Reassessing Novartis’ investment worthiness

Novartis’ shares are up c.12% since September 2022, even after yesterday’s c.3% decline post a broker downgrade. The issues triggering yesterday’s correction should not be a cause of major concern. Moreover, Novartis’ investment case is supported by strong growth and/or the attractiveness of its main drugs, intact pipeline execution prowess and healthy balance sheet. While its share price has lagged the likes of Novo and AstraZeneca of late, fortunes could well reverse in the foreseeable future.

Novartis ADR: Initiation of Coverage – Latest Focus Areas & Key Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (10/22)

This is our first report global pharma major, Novartis. The company delivered a mixed set of results for the last quarter, failing to meet Wall Street expectations in terms of revenues but managing an earnings beat. It saw a 5% top-line growth, also in innovative medicines in Sandoz. The company continues its productive agenda with growth in solid core operating income across the business. In the constant currencies, there has been a continued margin expansion. Novartis continues to gather appro

Mixed Q3, but 2022 guidance maintained

Q3 sales fell short of consensus and AV estimates while profitability was impacted by one-off charges. However, Innovative Medicines continued its growth/recovery momentum, with healthy growth in all therapeutic areas, except Neuroscience, where Zolgensma had a one-time adverse impact. Sandoz’s guidance upgrade was a positive, especially in the context of rising cost pressure squeezing other players. Overall, we remain positive on the stock, supported by the long remaining patent life of key dru

Takeaways from 2022 ‘Meet Novartis Management’ event

Novartis again shared a reassuring outlook, with promising sales growth and margin expansion targets. The only difference now is that the firm has clarity on Sandoz and all its efforts can be channelled towards unlocking the potential of its legacy stronghold pharma franchise. Overall, with a good mix of multi-blockbuster assets, a broad-based pipeline – also including some interesting advanced treatment frontier assets, and being open to bolt-ons, Novartis remains on the right track to navigate

Decent Q2; clear growth momentum seen across key franchises

Novartis has reported decent Q2 results, with the lynchpin oncology franchise finally reviving. Also, continued strong growth in other major franchises like immunology, cardiovascular and neurology provided additional impetus. Moreover, the improvement in Sandoz’s prospects and upwards revision to the cost-saving targets despite tough external improvement was icing on the cake. Hence, our positive recommendation on the Swiss giant is reiterated.

A subtle start to the year

Novartis started 2022 on a subtle note, with the lynchpin oncology franchise again failing to revive. However, all the other major franchises like immunology and cardiovascular performed well, and covered up for weaknesses/declines in other areas. Importantly, the profitability improvement continued, despite a tough external environment due to the pandemic and geopolitical crisis, which lends further support to our investment case. Hence, our positive recommendation on the Swiss giant is reitera

Pursuing a leaner organisational structure

Novartis has announced a new organisational structure, which is expected to result in further (financial) benefits in the medium-to-long term. Importantly, this rejig is targeted to help the group to become more agile in the face of rapidly-evolving market dynamics. Moreover, reiteration of the mid-term ‘sales + margin’ targets are icing on the cake and should calm the nerves of investors, who have been waiting (patiently) for the firm’s share price revival. Overall, our positive stance on the S

A good Q4 sums up 2021 recovery; but all eyes on Sandoz

Novartis ended 2021 on a good note, with key drugs (like Cosentyx and Entresto) offsetting weakness and/or restrained growth in other areas. While the 2022 profitability guidance came in lower than our expectations, it was due to sustained troubles in Sandoz – which is already under strategic review. Fortunately, Sandoz is garnering significant interest from various buyers. Overall, with core pharma virtues intact and Sandoz being side-lined gradually, Novartis remains an attractive sector bet.

In line Q3; Sandoz announcement blotted by DoJ investigation

Novartis has reported largely in line Q3 results, driven by a continuation of the recovery momentum in core pharmas while troubles at Sandoz remained. Fortunately, management has announced a strategic review of Sandoz, which in the long term should result in better return metrics and more effective focus on core competencies, i.e. innovative pharmas. While Novartis remains an attractive but under-rated big pharma bet, the near-term sentiment could (continue to) be mired by the recent DoJ investi

SkinBioTherapeutics - FY23 results

SkinBioTherapeutics has published results for the 12-months to June 2023, reporting AxisBiotix-Ps revenues up 77% YoY to £132k and an improved gross margin of 65% (FY22A: 61%). Operating costs were stable and the operating loss was flat YoY at £3.0m. Cash at the year-end was £1.3m and subsequently the company raised c£3.3m gross via a placing and retail offer. We have introduced FY24 forecasts with this report, expecting continued growth in AxisBiotix-Ps revenues supported by territory expansion

RUA Life Sciences - Billion-dollar markets

RUA Life Sciences is developing products targeting billion-dollar global healthcare markets, which, if successfully commercialised it will generate significant value for the company. The current raise will support the business as it seeks to deliver the growth opportunities within its Contract Manufacturing business unit and commercialise and partner its lead vascular graft products and its heart valve leaflet composite material. We believe the company offers an attractive combination of establi

Fundraising looks well supported

RUA have announced, subject to shareholder approval at a General Meeting, the intention to raise equity via the combination of an institutional placing of shares, a subscription by certain directors and a retail offer. While the minimum gross proceeds are expected to be at least £4.1m, the full amount raised will be fluid until after the retail offer and shareholder approval. The final proceeds raised should be known after the outcome of the Retail Offer is announced on 8 December, and sharehold

4basebio - Interims – scaling to meet anticipated commercial traction

4basebio’s half-year results for the period ended 30 June 2023 reflect continued progress towards its main objective of producing GMP-grade synthetic DNA, with a focus on building out its commercial footprint. It generated revenues of £0.24m (+57%, with all growth coming from the sale of DNA and Hermes™ nanoparticles) with an adjusted net loss of £3.5m (H1 2022: £2.4m, +46%) and period-end cash of £3.6m, having drawn a further €4m from its €23m loan facility that gives it a cash runway into 2025

FY23 results: consolidation and cash generation

For the year to 30 September 2023, Benchmark Holdings reported revenue FY23 of £169.6m, +7.5%YoY (currency adjusted +7%YoY) which was 0.7% below our outlook, and adjusted EBITDA of £35.5m, +9%YoY, 5% above our outlook. Net operating cash of £20.0m was almost double FY22 (£10.8m) with a notable improvement in working capital management from £(12.0)m to £(1.0)m underlining efforts to control costs and improve operational efficiency. Net debt was £45.6m, with year-end cash at £36.5m. The Group rep

Morning Note – 1 December 2023

Hybridan Small Cap Feast - 01/12/23

1st December 2023 @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 obje

Trinity Delta Lighthouse: ANGLE

Trinity Delta view: Commercialisation of the Parsortix system is still at an early stage, although momentum is building, and management are continuing to focus on developing the potentially sizeable revenue streams through both ANGLE’s Product and Service offerings. The reality of current market conditions has driven difficult decisions to streamline infrastructure while still enabling investment into developing protocols on third-party molecular systems, and into products and services relevant

One Health Group (OHGR.AQSE) 174p Full Year Results 2023

One Health Group has reported a strong operational and financial performance in its first year as a listed company. Patients seen and procedures carried out experienced strong growth resulting in revenue and profitability coming in ahead of forecasts. The outlook remains positive, and the company offers an attractive combination of defensive growth at an undemanding valuation

LSE AIM Market Screener - 22 June 2023

 The market capitalization of 806 AIM stocks was £89.3bn as of 20 June 2023. FTSE AIM All Share Index was down 5.55% YTD to 785.2 as of 21 June 2023. There were 32 companies delisted from AIM over the period December 2022-June 2023. Among the top YTD winners, there were Celadon Pharmaceuticals (up 209%, MktCap £95m), Vast Resources (+211% YTD, Mkt Cap of £15m), B90 Holdings (+200%, MktCap £22mn), Verditek (154%, MktCap £6mn), Star Phoenix Group (+162%, MktCap $1.6mn), Inspecs Group (+162%, Mk

The Hardman & Co Monthly: September 2023

Feature article: Equity Income – UK or Global? Should investors widen their horizons? Introduction: ► The UK Equity Income sector (UKEI) is the fourth-largest investment company (IC) sector in the Association of Investment Companies’ (AIC) universe, with £12.5bn of assets (as at August 2023), and is the traditional home for investors looking for income in the equity market. ► The UKEI not only provides investors with a better dividend yield than the ge

Bio-detection becomes a commercial reality

Recent new contracts show that Kromek’s investment in bio-hazard detection technology is becoming a commercial reality. On 26 October the Group received a US$5.9m (£4.84m) contract from the US Department of Homeland Security Countering Weapons of Mass Destruction (CWMD) Office - the first for Kromek - to research and develop technologies for agent-agnostic bio-detection. On 31 October Kromek announced 3 more orders for CBRN detection worth a total of US$1.0m (£0.82m), most of which is expected

Venture Life Group - Strong cash generation

Venture Life has published its interim results to the end of June 2023, reporting group revenue growth of 24.4% to £23.5m, supported by both VLG brands and Customer brands. Although gross margin was down in the period as anticipated, tight operational cost control delivered improved adjusted EBITDA margin of 18.9% (H1/22A: 17.6%). As in previous years, we expect H2/23E to deliver stronger adjusted EBITDA and maintain our £11.6m FY23 expectation. Significantly, cash flow generation was strong in

Shield Therapeutics - $26.1m fundraise ($20.0m debt)/$6.1m equity)

Shield raised $26.1m through a $20m term loan facility with SWK Holdings (unconditional) and $6.1m equity placing to fund several initiatives to drive improvement in gross-to-net (GTN) prices (including new field access team), fund the working capital needs (inventories and receivables) of the US growth story and repay the $5.7m AOP Health convertible loan. The interims and Q3 update clearly show the fruits of the Viatris collaboration, with covered lives increasing 20% to 123m (vs. 100m) and st

Cambridge Nutritional Sciences - H1 2024 interims: Executing a newly focussed st

Cambridge Nutritional Sciences (CNS) has published its H1 2024 results to end September 2023. Group revenues grew 44% to £4.9m and gross profits increased by 63% to £3.1m, with the company benefitting from newfound operational efficiencies. With its now streamlined strategy focussing on the core Health & Nutrition business and the initial signs of an encouraging uptick in sales momentum, we believe the company is well positioned for growth that will help create future value for shareholders. We