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.
Companies: Galenica AG
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
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Recruitment resumed the Phase 2a trial of the lead programme hRPC in retinitis pigmentosa (RP) with the treatment of the first UK-patient in Oxford. The protocol gives greater infection control after the safety issue (a possible infection) in June. Five patients were treated up to mid-October and the remaining four could be treated by December 2021. By late March 2022, ReNeuron expects to give an interim update. The full data set should be available around mid-2022. This will enable regulatory d
Companies: ReNeuron Group plc
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Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
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SkinBioTherapeutics has made significant progress through 2021, and ahead of the launch of its first product, AxisBiotix-Ps on World Psoriasis Day, we provide an overview of the company, its commercial channels and its progress. With the imminent launch of AxisBiotix-Ps, the company is at a significant inflection point, transitioning from a development organisation to a commercial operation. Importantly SkinBioTherapeutics has four further commercial channels in progress behind this lead opportu
Companies: SkinBioTherapeutics Plc
IXICO has announced that one of its clients has put an indefinite halt on a clinical trial for which the company was providing its artificial intelligence medical image analysis. The halt is the result of unexpected preclinical data. IXICO had expected the contract to deliver £0.8m of revenues in FY22E and it represented £3.3m of the £18.8m order book as of the close September 2021. While this news is disappointing, clearly the trial halt has no reflection on the capability of IXICO's technology
Companies: IXICO Plc
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Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) , the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz.
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CareTech is a specialist social care and educational services provider. This morning, the group has announced an update for the year to 30 September pointing to the fact that results will be in line with market expectations. The net debt position of £259m illustrates a further reduction since the end of H1 (31 March £263.1m) and implying a reduction to 2.7x adjusted EBITDA. During the year, seven new developments have opened, with a further eight properties purchased in H2. The group's freehold
Companies: CareTech Holdings PLC
Positive headline results announcement, showing a statistically significant and clinically meaningful difference between Grass MATA MPL and placebo in hayfever patients in the exploratory field study (G309), is considered a major de-risking event. Not only does it increase the probability of successfully completing the pivotal Phase III study (G306) in the US and EU, but it underpins the broader MATA MPL platform, which includes tree and ragweed pollen, and increases the likelihood of completing
Companies: Allergy Therapeutics plc
H1 EBITDA declined by 45% YoY, albeit this was slightly better than we had anticipated after the pre-close update in August. The beat was cost related (efficiencies/savings). There was a significant gross margin drag though and, while transitory in nature and diminishing in H2, this means further savings need to be realised to hit full year forecasts. This is our view and we retain a good level of confidence in next year’s forecasts. Having de-rated, valuation looks very undemanding now on just
Companies: Venture Life Group Plc
SkinBioTherapeutics has announced it will launch its lead commercial product, AxisBiotix-Ps on World Psoriasis Day, 29 October 2021. To support the launch, the company has begun to receive, and store finished product in the Netherlands (close to its manufacturing partner) ahead of initial launches in the UK and US. Clearly the launch of its first product is a significant step for SkinBioTherapeutics, marking the transition from development company to commercial operation. We are encouraged by th
Full-year results were in line with the trading update of 21 July, with revenues of £31m (-2%), reflecting the impact of COVID-19 on out-patient procedure rates, resulting in 14% and 24% declines in adjusted EBITDA and pre-tax profit, respectively. Lower than expected procedure growth rates and the decision to discontinue non-core (non-chlorine dioxide products) reduces forecast revenues by c.£3m to £33m in FY 2022. However, higher gross profit and tight control of costs (+6%) results in an unch
Companies: Tristel Plc
Hikma’s H1 20 top-line acceleration was driven by COVID-19-related demand in Injectables and Generics and the economic recovery in Algeria propelled growth in the Branded segment. Combined with a favourable product-mix, the operating margin was up 1.5ppt. In the near term, new launches across segments should provide some respite against the ongoing pricing pressure. Given the company’s thin R&D pipeline and a robust balance sheet, M&A (probably in the biosimilars space) seems on the cards.
Companies: Hikma Pharmaceuticals Plc
The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions yesterday announced it has entered into a partnership with Tabula Rasa HealthCare® (TRHC) (NASDAQ: TRHC), a healthcare technology Company advancing the field of medication safety. Through this initiative, Physiomics' personalised docetaxel model will be integrated into TRHC's market-leading precision dosing solution, DoseMeRx®. Both parties expect positiv
Companies: Physiomics Plc
CVS has capped off an excellent FY21 with a full year outturn ahead of market expectations. It enters FY22 with good momentum, supported by sector tailwinds and further easing of lockdown restrictions. It continues to invest for growth and has balance sheet strength to pursue further targeted acquisitions. We upgrade our current year EPS by 4% and by 3-4% for the outer years, with the risk on the upside. We continue to see CVS as a multi-year growth story with market leadership attributes, opera
Companies: CVS Group plc
In its first Litmus test after an ‘ambitious’ CMD in June 2021, the British giant has put up a decent show. The group witnessed recovery in the base business, particularly in vaccines which benefited from the sales of COVID-19 vaccine adjuvant. While the near term continues be tricky due to resurfacing COVID-19 concerns, encouraging trends on the COVID-19 vaccine / treatment front and growing HIV and oncology prowess should calm the nerves.
Companies: GlaxoSmithKline plc
Abingdon’s FY21 trading update indicated revenues are expected to be ~£11.6m and an adj EBITDA loss of £(3.3m), in line with the revised guidance given in April. It continues to be hamstrung by the hiatus in orders for its lead product AbC-19 and is caught in the crossfire of a legal dispute involving the DHSC. Payment of the outstanding debt of £6.7m continues to be withheld pending the outcome of this judicial review. As a result, Abingdon has enacted a cost reduction programme, which has incl
Companies: Abingdon Health PLC