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In Q2, Astra sustained its solid top-line momentum. Like in the past few quarters, this outperformance was again driven by higher COVID-19 business sales and solid growth in Diabetes drug Farxiga. Moreover, the recovering Oncology and much-needed green shoots in Rare Diseases were the icing on the cake. Although, profitability again came under the scanner but should improve in the coming quarters/years as the company completes its ‘growth phase’. Overall, a decent set of results and our positive
Companies: AstraZeneca PLC
Astra kicked-off 2022 on a good note, with solid growth in Farxiga and higher COVID-19 vaccine sales, off-setting weaknesses in lynchpin oncology and rare diseases. Although vaccine-driven top-line tailwinds are expected to dissipate soon, this is expected to be offset by a recovery in the core areas. In Q1, profitability again came under pressure but improved sequentially, and should improve further as the ‘young’ portfolio rolls over. Overall, decent results and our positive recommendation on
Astra finished 2021 on a strong note, driven by a solid contribution from oncology, diabetes drug Farxiga, the Alexion acquisition and COVID-19 vaccine sales. Although, profitability has again come under pressure, it isn’t a major worry, and should recover as its ‘young’ portfolio matures over time. Although, the recent clamp-down on Chinese entities/drugs by the US is worrisome, and should be watched closely, given Astra’s sizeable Chinese exposure. Overall, these are decent results and our pos
After witnessing an impressive run in 2021, Astra’s share has come under pressure in recent months. While this was partly driven by market-wide correction due to the fast-spreading Omicron variant and profitability concerns after the Q3 results, the firm remains on course to invest in promising areas. Hence, sector-leading sales growth and material medium-term earnings growth remain an unchanged scenario. As a result, our positive stock recommendation is reinforced.
In Q2, Astra reported strong sales growth momentum, (again) driven by a strong showing in oncology, diabetes drug Farxiga and COVID-19 vaccine sales. Although there were some issues in R&I and CVRM. More importantly, at cost vaccine sales and mandatory VBP discounts in China weighed on profitability. While the profitability strain can sustain in H2 as well, one should find confidence from the robust potential of core pharma offerings and the addition of high-growth and excellent-margin Alexion,
Astra kicked-off 2021 on a promising note, from both a sales and profitability perspective. Besides a healthy (though somewhat slower) performance for the lynchpin oncology portfolio, the strong growth in Farxiga (diabetes drug) was comforting. While the near term for the UK pharma giant could continue being hampered by the COVID-19 vaccine and Alexion deal terms-related uncertainties, a robust outlook for the core pharma business is encouraging and renders apt support to the stock recommendatio
Companies: AstraZeneca PLC (AZN:LON)Futura Medical plc (FUM:LON)
Unlike peers, AstraZeneca finished the year on a high, both from a sales and profitability growth perspective. Robust performance by its all-important Oncology franchise was soothing, especially when the Swiss peers witnessed issues. While the group’s debt burden and Alexion plans again curtailed shareholders rewards, a robust 2021 outlook and promise on the pharma innovation side is encouraging. Overall, an attractive pharma proposition, provided that one withstands uncertainties with respect t
Looking Ahead At The Next Week
AstraZeneca has made a significant bet on Alexion (rare diseases major). Given this foray into a growing area, the deal should create value – via immediate earnings accretion plus $500m p.a. of synergies from the third year onwards. Although, considering Alexion’s track record, (some) miss on the top-line potential can’t be ruled out. Moreover, leverage build-up – to finance this acquisition and, hence, dividend limitations should unnerve Astra’s shareholders. Overall, this deal has longer-term
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EKF has reported a strong H1, with revenues of £37.5m and double-digit growth in underlying non-Covid related business. Management reports it is trading in line with expectations for the full year and we make no change to our profit forecasts at this stage. New growth initiatives are proceeding to plan and should lead to accelerated core growth from FY23 onwards. We continue to see substantial upside on successful execution with the shares trading on an FY23 P/E of 13.1x and an EV/EBITDA of just
Companies: EKF Diagnostics Holdings plc
Singer Capital Markets
Kromek announced a £1.7m fundraise by way of the issue of convertible loan notes (8% coupon, 18-month conversion period at 15p per share), which will allow the company to minimise any potential supply-chain disruption to the delivery of contracts during the year. We make only minor changes to forecasts to reflect the additional interest (c.£0.1m) accrued, with adjusted pre-tax loss increasing to £5.0m. We leave our target valuation of £118m (27p) unchanged, with near-term catalysts (e.g. a secon
Companies: Kromek Group Plc
Dish of the day
No joiners today.
Leavers: No leavers today.
What’s cooking in the IPO kitchen?**
Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports
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Companies: Omega Diagnostics Group PLC
Ahead of its upcoming results, ECO has issued an update flagging an issue around a sales tax liability and the treatment of certain items of capitalised development, offset by a foreign exchange gain will result in it reporting FY22 Adj EBITDA of ~£6.5m vs SCMe £7.1m. It has also indicated trading in China has been difficult in Q1 FY23, particularly with the large producers, but margins have improved on mix. Trading in the Rest of the World has been strong YTD. Given the proximity to the results
Companies: ECO Animal Health Group plc
Dish of the day
No joiners today.
No leavers today.
What’s cooking in the IPO kitchen?
Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export
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Companies: PureTech Health PLC
Dish of the day
Inteliqo Limited has joined the Access Segment of AQSE Growth Market. Inteliqo Limited provides sales, marketing and distribution services to technology product owners.
Leavers: Menzies (John) plc and Sanne Group have left the Premium Segment of the Main Market.
What’s cooking in the IPO kitchen?**
Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a sup
Companies: INSE AEG ASTO BEG CGH FIPP KMK
Companies: Argo Blockchain Plc (ARB:LON)Kromek Group Plc (KMK:LON)
Belluscura has announced that it has entered into a Group Purchasing Organisation Product Supply Agreement with VGM Group which further expands its distribution network across the US.
Companies: Belluscura PLC
For the year to 30 April 2022 Kromek reported results in line with the Trading Update of 16 May: revenue of £12.1m, +16.5%YoY, and an EBITDA (adj.) loss of £1.2m. We estimate revenue in the Advanced Imaging division grew 28% YoY to £4.6m, whilst the CBRN segment grew 1.5x to £5.4m.
Kromek reports that it expects growth to accelerate in both its core segments – security-related CBRN and advanced imaging – with the prospect of “a substantial year-on-year increase in revenue”. The CBRN segment in
Hikma ended the H1 on a weak note, with decent growth in Injectables and Branded segments being largely offset by a decline in the Generics franchise. Also, the weaker H1 led to a second downward revision to the full-year 2022 outlook for Generics in the last three months. Nevertheless, these are only transient concerns and the firm’s attractiveness remains intact on the back of the robust long-term virtues of the generics market, and the group’s leading position in the target markets.
Companies: Hikma Pharmaceuticals Plc
Companies: ReNeuron Group plc
Feature article: Utility regulation – Changes afoot - Patching up a tainted model
While the gas supply crisis – and its price implications – have dominated the UK price regulated sectors in recent months, other issues have arisen that have seriously tainted the price regulation system itself. Indeed, it is fair to ask whether it is ‘’fit for purpose’’.
Back in 1984, price regulation, via an unsophisticated RPI-x formula, was introduced to prevent the privatised British Telecom (BT) from abusin
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Hardman & Co
Creo Medical has provided a positive trading update for H1/22E, expecting revenues to increase over 10% vs H2/21A (£12.3m), indicating revenues of c£13.5m for the period. Creo notes this growth is driven by its core technology and Kamaptive licensing programme. The company expects gross margins to improve, which, coupled with a reduction in operating costs, should deliver over a 20% reduction in underlying EBITDA loss versus H2/21A. H1/22E cash burn has also been reduced. During the half there h
Companies: Creo Medical Group Plc