Decent end to 2022; innovation remains at the fore-front

bioMerieux released in line Q4 sales numbers, with healthy growth being witnessed across the board. Importantly, the recent spike in influenza infections, respiratory syncytial virus and higher COVID-19 infections resulted in strong demand for respiratory panels. While COVID-19 testing tailwinds are expected to further moderate in the coming quarters, the 2023 guidance remains unchanged, reflecting a healthy outlook for the non-COVID-19 offerings. Overall, considering a slew of launches accompan

Healthy non-COVID business momentum + improved 2022 guidance

bioMerieux’s Q3 sales came in ahead of both AV and consensus expectations. While COVID-19 testing sales continued to weaken (also a sector-wide trend), healthy developments were witnessed in the non-COVID space. Moreover, management also (marginally) improved its 2022 sales growth guidance. Considering that non-COVID testing tailwinds are expected to remain resilient and the re-emerging M&A rumours – given the material sell-off over the past couple of months – our positive recommendation is reit

Strong Q2; guidance upgrade

bioMerieux reported strong Q2 22 sales. Positive momentum was witnessed in Molecular Biology, Microbiology and Industrial Application. Moreover, the recent spike in COVID-19 cases and higher flu market opportunities in the US resulted in strong demand for respiratory panels. Management also (marginally) improved its 2022 guidance. Add on top, notable progress in offering innovation terms and promising testing market dynamics, the sell-off in recent months is worth capitalising.

A slow start to the year

bioMerieux reported weak Q1 22 sales, with organic sales witnessing a mid-single-digit decline. As expected, COVID-19 testing sales moderated while positive momentum was witnessed across the Microbiology and Industrial segments. Management also reiterated its 2022 guidance. While our estimates should reset marginally lower, the MedTech sell-off in recent months has reinstated the attractiveness of the likes of bioMerieux, especially considering the long-term non-COVID testing market business opp

Healthy 2021; weak 2022 guidance, but it isn’t an investment case spoiler

bioMerieux ended 2021 on a healthy note, with impressive sales and profitability, driven by promising dynamics across segments. This also resulted in impressive dividend growth. While 2022 guidance was on the weaker side – due to fading COVID-19 testing tailwinds, and increasing costs (partly also due to post-pandemic normalisation), it wasn’t a big surprise. While our estimates could reset marginally lower, the sell-off in recent months opens an attractive opportunity, also with respect to M&A

Healthy Q3 prompts 2021 guidance upgrade

bioMerieux reported healthy Q3 results, with growth across the board. Interestingly, both COVID-19 and routine businesses were beneficiaries in varying degrees. As a result, management upgraded its FY2021 sales growth and profitability guidance. Besides these results reinforcing our positive stock recommendation, they are also an important read-across for testing firms, wherein their ability to withstand erosion in COVID-19 testing via a recovery in routine areas has been a comforting developmen

Q2: recovering routine business plus some (temporary) profitability tailwinds

Despite further normalisation in FilmArray, bioMerieux witnessed recovery/ healthy momentum in most other routine areas. Although, as expected, group-wide sales growth moderation was evident. Importantly, profitability came in ahead of (consensus) expectations due to temporarily lower costs. While the worsening COVID-19 situation, especially in the US, may render some near-term support to FilmArray, the rebound in routine businesses is a major promising signal. Our positive stock recommendation

COVID-19 tailwinds fading away

Organic sales growth decelerated in Q1 21 as demand for FilmArray’s respiratory panel slowed in the US towards the end of the quarter. As the health situation improves in the US, demand for PCR-based testing could decline in the coming quarters. Ergo, FY21 sales guidance has been slashed. The entry of Roche in the syndromic testing space, through GenMark, is also a threat, though the recovery in the routine testing business provides some respite.

Another quarter of double-digit growth; full-year targets exceeded

Benefitting from sustained demand for COVID-19 testing solutions, bioMerieux reported another quarter of double-digit growth in Q4 20. Interestingly, the FY20 targets were exceeded, both on the sales and profitability front, and management has proposed a dividend of €0.62 per share (vs. FY18: €0.35). The FY21 guidance is also encouraging and growth is likely to be front-end loaded. bioMerieux is banking on its menu-expansion strategy to bolster growth for FilmArray once COVID-19 subsides, but so

Momentum accelerates in Q3; FY20 targets instilled

The Q3 outperformance was led by the FilmArray product line which benefited from exceptional demand for molecular-based COVID testing and increasing instrument placements. The Industrial applications segment also returned to growth. Although the routine testing businesses saw an improvement, it continues to trade in the red and, as hospital traffic remains subdued, uncertainty remains with respect to a full recovery. Nonetheless, the FY20 guidance implies that organic sales growth could reach a

Profitability beat in H1

Despite lower revenue in the microbiology and immunoassays businesses due to a decline in routine testing, bioMerieux reported double-digit organic revenue growth in H1, led by robust demand for COVID-19 tests in the molecular biology business. The resulting operational leverage, favourable product mix and lower selling expenses led to a profitability beat in H1. The favourable sales trend witnessed in H1 should continue in the second half, though the same trend cannot be extrapolated to FY21 ac

Molecular biology to the rescue as situation worsens in other businesses

Q2 sales were slightly ahead of expectations led by continued demand for molecular biology product lines used in COVID-19 testing. However, the momentum decelerated compared to the previous quarter as the situation worsened in the microbiology and immunoassays businesses – due to less patient traffic in hospitals and the resulting decline in routine testing. Though the company witnessed an improvement in these businesses during the last few weeks of Q2, returning to pre-COVID levels could take t

Despite an exceptionally strong Q1, FY20 targets suspended

Q1 sales were significantly ahead of expectations fuelled by increasing demand for FilmArray’s respiratory tests amid the ongoing COVID-19 pandemic. While respiratory and recently-developed COVID-19 tests should bolster growth going forward, the number of patients seeking consultations for other diseases is falling substantially. This could result in a slowdown in the routine laboratory business and, in turn, bioMerieux’s immunoassays and microbiology segments (the impact was visible in the last

In line Q4 19, overshadowed by cautious outlook for FY20

Q4 19 was largely in line as the pick-up in sales in microbiology, driven by equipments, made up for the slowdown in FilmArray, due to rising competition. However, the guidance for FY20 signals a sales deceleration with China, held back by the Coronavirus being the main drag. Lower sales could also affect profitability in FY20. While bioMerieux plans to introduce a test to detect Coronavirus by Q2 20, it is still behind rival Qiagen in terms of test development.

FY19 outlook slashed despite sales acceleration in Q3

Sales growth accelerated further in Q3 as immunoassays returned into the black after five consecutive quarters of negative lfl growth. Sustained demand for FilmArray and a pick-up in sales in industrial applications bolstered growth further. Despite this sales beat, management has turned cautious with its FY19 sales outlook – tough comps and heightening competition signals sales deceleration in Q4. With top-line growth momentum fading away, bioMerieux could now take the inorganic route to beef u

Reassurance on RCF funding and FCF in Q1

VLG has issued a reassuring statement regarding its RCF/funding. Liquidity is sufficient and stable, and no impact or risk to the business is expected to arise from events at Silicon Valley Bank, one of the lenders under its RCF. The Board is confident of being able to refinance that portion of the RCF either at or before renewal in Jun24. In addition, VLG reports a strong start to the year, including good cash generation following the strong final quarter of FY22.

Hybridan Small Cap Feast - 06 Mar 23

6 March 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 objective

LIBERUM: Futura Medical* - Eroxon live in EU, FDA decision now Q2

Positive momentum persists

2022 was a pivotal year for NIOX as it moved firmly into sustainable profitability and cash generation. The foundations for a scalable platform are now well-established and the group enters 2023 with strong momentum (revenues in the first two months of the year were +19%). Having upgraded our forecasts following the trading update in January, we push through further EBITDA upgrades on improved margin assumptions. NIOX is a rare asset and fully deserves a premium rating. We stay at Buy, with an i

Tissue Regenix - FY 2022 – a pivotal year to a sustainably profitable business

Tissue Regenix reported full-year results to 31 December in line with its January trading update that indicated it had reached EBITDA profitability in Q4. What was undisclosed then was that it included a $0.45m provision, without which it would have generated an adjusted EBITDA of c.$0.4m in H2, illustrating the positive underlying progression to a profitable and sustainable growth company. The outlook remains positive – new products, new geographies and additional distributors/strategic partner

Hybridan Small Cap Feast 08/03/22

What’s cooking in the IPO kitchen?** Fadel Partners, a developer of cloud based brand compliance and rights and royalty management software, working with some of the world's leading licensors and licensees across media, entertainment, publishing, consumer brands and hi-tech/gaming companies intends to join the AIM market. FADEL has two solutions, being IPM Suite and Brand Vision. Expected Admission date is late March 2023. Onward Opportunities Limited intends to join the AIM market. The Company'

Morning Note – 21 March 2023

Morning Note – 16 March 2023

Hybridan Small Cap Feast - 21 Mar 23

21 March 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 objectiv

Hybridan Small Cap Feast - 14 Mar 23

14 March 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 objectiv

Hybridan Small Cap Feast - 20 Mar 23

20 March 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 objectiv

Hybridan Small Cap Feast - 16 Mar 23

16 March 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 objectiv

Timely reminders of an unsafe world

As the acronym suggests, Kromek’s technology in the CBRN segment detects a wide range of threats, from radiological to biological hazards. These are united by two common themes: practicability – making ultra-high performance detection devices compact, robust and easily-deployed – and connectivity – enabling data sharing and analysis, to facilitate rapid response. A number of recent events and reports around the world serve as a timely reminder that Kromek’s CBRN technology has urgent practica

Hybridan Research: 15/03/2023: Sareum Holdings plc: Application in Australia for Clinical Development of SDC-1801

Sareum today announces that it has initiated an application to perform Phase 1 clinical studies on SDC-1801 in Australia under the Clinical Trial Notification (CTN) scheme. The documents required have been submitted to a Human Research Ethics Committee (HREC). A decision on approval by the HREC and acceptance of the CTN by Australia’s medicines regulator, the Therapeutic Goods Administration (TGA), is expected in Q2 2023. SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential new thera

Hybridan Research: 22/03/2023: Sareum Holdings plc: Expecting regulatory approval in Australia for clinical development of SDC-1801

Sareum today announces its unaudited results for the six months ended 31 December 2022. The Company’s operating expenses were £1.748m, up 72% year-on-year, reflecting the increased R&D associated with preparation for clinical trial, and this resulted in a loss before tax of £1.731m. As at 31 December 2022, the cash balance was £2.941m (vs. 30 June 2022: £4.261m). Application in Australia for clinical studies on SDC-1801: Post period end, Sareum submitted an application for Phase 1 clinical stu