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Galenica’s H1 2023 results matched the already-published preliminary figures. Adjusted revenue rose by 5.5%, reaching CHF 1.85 billion. EBIT declined by 5.1% owing to exceptional items. While the firm maintained its FY23 revenue and dividend outlook, the EBIT expectations were revised to the prior-year’s level. The broad-based revenue growth across segments was encouraging while the downgraded EBIT guidance was a one-off and, hence, of little concern.
Companies: Galenica AG
AlphaValue
Galenica reported softer than expected FY22 earnings, sending the stock 2.1% lower at pixel time. FY22 adjusted EBIT came in at CHF 200.8m with the margin at 5%. In spite of the earnings miss, the firm raised the FY22 dividend by 5% to CHF 2.2/share. For 2023, the firm expects both top-line and EBIT growth of 3-6%, implying 1.5%/1.75% downside vs AV/consensus, respectively. We do not expect significant changes to our estimates and re-iterate our cautious stance.
Galenica reported estimate-beating FY22 sales growth of 4.7%, driven by an uptick in Products & Care (6.4%) as well as Logistics & IT (3.6%). The former benefited from continued momentum in Pharmacies-at-home (+13.3%) and Products & Brands (+17.9%). Importantly, the sales at high-frequency locations continued to recover alongside strong demand for cough & cold medications. Galenica upgraded its FY22 EBIT growth guidance to the high end of the previous 8%-12% range, in-line with our expectations.
Galenica reported estimate-beating H1 22 numbers with sales/adjusted EBIT a respective 4.8%/2.5% ahead of consensus. H1 sales of CHF 1.96bn were up 5.5% Y-o-Y, driven by broad-based growth even though the adjusted EBIT margin declined as had been expected. Following the strong H1 growth, Galenica now expects FY22 sales growth of 2-4% and adjusted EBIT growth of 8-12%. We expect a minor upgrade to our forecasts to reflect the stronger than expected margin trajectory.
Galenica reported strong FY21 consensus-beating profit numbers. EBIT was up 26.4% to CHF213.1m, driven by the encouraging growth in both the operating segments. However, the profit growth benefited from pandemic tailwinds as well as a one-off gain on the sale of property. While the performance was encouraging, the FY 22 outlook was softer than expected, hurt by unwinding pandemic tailwinds and a slower pick-up in high frequency pharmacies. We will trim our estimates to factor in the soft outlook
Galenica reported strong FY21 sales growth of 10.2%, driven by 13.4% growth in the Products & Care segment and a 7.9% rise in Logistics & IT segment revenue. The former benefited from 29.2% growth in the online & mail-order pharmacy channel (reported as Pharmacies-at-home) and a 17.8% uptick in Products & Brands revenue. Following the strong sales update, Galenica now expects FY21 EBIT growth of 24-28%. We expect to upgrade our FY21 numbers following the trading update.
Galenica reported estimate-beating H1 21 numbers. Sales were up 9.9%, driven by the strong momentum across Logistics & IT (+7.4%) as well as Products & care (+13.6%). Of note, ‘Pharmacies at home’ revenue was up 30.9%, thanks to the surge in mail-order and online sales. Adjusted EBIT was up 21.3% with the margin at 5.5%. Following the strong H1, Galenica upgraded its FY21 outlook and now expects top-line/EBIT growth of 5-8%/10-14% respectively. We will upgrade our estimates and target price.
Galenica reported largely in line FY20 earnings even though it beat its own profit growth guidance (+1% vs 0% guidance). As expected, the profit growth was attributable to the services segment. The board will propose an unchanged dividend of CHF1.8/share. For FY21, management expects 1-3% top-line growth and 2-5% adjusted EBIT growth, both marginally lower than estimates. We expect to trim our estimates, to factor in the relatively softer guidance.
Galenica reported strong FY20 sales (+5.4% to CHF3.48bn), trumping estimates. Growth was driven by Services (+7.8%) and Products & Brands (+9.4%), which made up for the expected softness in Retail (+2.7%). The group expects FY20 EBIT to be at the prior year’s level, and will propose a dividend of at least CHF1.8/share, as previously announced. Given the marginal top-line beat, and in line profit forecast, we do not expect any significant changes to our forecasts or target price.
Galenica released a mixed set of H1 20 numbers: sales were up by 5.6%, while adjusted operating profits increased by an unimpressive 3% (vs consensus of +4.5%), as margins contracted by 20bp. Management upped its FY 20 growth outlook (2-5% vs 1-3% earlier), while lowering its operating profit estimates (same as the prior year’s vs 3-6% growth earlier). The dividend is still expected to be at least equal to last year’s level. We expect minor downward revisions on account of lower profit estimate
Galenica reported FY19 adjusted operating profit of CHF166.9m, in line with consensus but missing our estimates. The strong profit growth in Health & Beauty (+12.1%) was partly offset by a soft performance in services (+1.1%). The company announced a dividend of CHF1.8/share. For FY20, management expects topline growth of 1-3%, adjusted operating profit growth of 3-6% and dividend at least equal to the FY19 level. We expect minor downward revisions in our estimates and target price.
Galenica reported FY 19 sales of CHF 3.3bn, +4.3%, with broad-based growth across segments – services +2.9% to CHF 2.4bn and ‘health & beauty’ segment, +6.3%, to CHF 1.6bn. Management now expects FY 19 EBIT growth to come in at 7-9% (vs 5-7% earlier) while dividend guidance (at least equal to prior year level of CHF 1.7/share) remains unchanged. Following the outperformance, we expect minor upward revisions in our estimates and target price.
Galenica reported FY 2018 revenue of CHF3,165m, up 0.8% and in line with consensus but missing our aggressive estimates. The strong growth of the health and beauty segment (H&B: revenue of CHF1,525m, up 3.1%) was partly offset by softness in the volume-driven services segment (SS: revenue of CHF2,372m, up 0.4%). Adjusted EBIT came in at CHF154.1m (ahead of consensus and in line with our estimate) with the associated margin at 4.9% (H&B: 7.2%; SS: 1.9%). A negative CHF41m impact due to the imple
Driven by strong growth momentum in each of the three medium-term strategic growth drivers (Ferinject, Veltassa and VFMCRP), Vifor Pharma reported 23.4% sales growth and 44.5% EBITDA growth in H1 18. Assuming that the positive growth momentum continues and considering that Vifor has further strengthened its nephrology portfolio, which would bolster growth in the mid/long term, we upgrade our target price by c.15%.
Vifor Pharma released a good set of FY17 results in which revenue and profitability came in ahead of our expectations. Total revenue surged by 15% (190bp above AV’s estimate vs. guidance of >10%) led by strong growth momentum in the intravenous/IV iron drug franchisee. Vifor’s flagship product ‘Ferinject/Injectafer’ grew 24.6% (c.32% of sales) on the back of robust demand in the US (+35%; c.21% of drugs sales) and Europe (+17%). Although sales for Venofer slumped 11.8% (c.8% of sales; impacted b
Research Tree provides access to ongoing research coverage, media content and regulatory news on Galenica AG. We currently have 9 research reports from 1 professional analysts.
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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
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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
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Hybridan
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Turner Pope Investments
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
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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 (
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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
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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
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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.
This month's feature article is entitled 'Gold and a Chinese Credit Event'. A Western phenomenon? If you own, or are considering owning, gold or gold equities, it’s likely that you’re concerned about protecting your wealth, or the performance of your fund, in the expectation of some kind of financial instability. Maybe your confidence in policymakers is ebbing, or you’ve researched debt bubbles in history and concluded that physical gold and silver have been the safest places to be invested whe
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