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No real surprises at the group level as the management had already given some indications at the recent Investors Day. Display Solutions and Life Science Services were a positive surprise, whereas the weaker sales from the Mavenclad franchise was a slight negative. The good news was that development remained on the expected trajectory and, in particular, the fact that Process Solutions may have seen an inflection point in terms of orders. The Group’s profitability was 9.4% ahead of our expec
Companies: Merck KGaA
AlphaValue
Merck’s investors day had no negative surprises. However, we were given the first glimpses of 2024, which gave us a positive impression. Additionally, the management was confident of meeting the 25by25 target, but was a bit shy about explaining how it believes the existing delta will be organically closed. The breakout sessions provided some helpful insights.
When two businesses face headwinds, the third does the job. This is why we are so in favour of Merck’s multi-industry business model. Life Science and Electronics are facing some headwinds after the boom, which makes 2023 something of a transition year – especially due to the fact that the negative effects will remain around for longer than previously expected. In 2024, things should become easier. Investors welcomed the reported Q2 figures, which were a beat to consensus (sales: +1.0%; adjuste
The management released the detailed FY guidance, which was a blow to our fairly optimistic expectations. This can be partly explained by our overly-optimistic stance on Life Science and Electronics. We see this guidance as quite realistic in that it reflects the many ifs and whens. However, the Q1 figures comfortably beat out expectations (sales: +0.1%, consensus: +0.4%; adjusted EBITDA: +6.2%, consensus: +3.3%).
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
Companies: PIN HAT ME AVO APAX 4503 BHC 4568 FCSS GLXO HLUNB HIK HZNP IBT JAZZ JAZZ JNJ JNJ 4578 REGN REGN STX 4507 4506 4502 TEVA UTHR UTHR VRTX VRTX VTRS UCB UCB SAN SAN PFE PFE PFIZ NOVOB NOVOB NOT MRNA MRNA MRK
Hardman & Co
Merck reported a good set of figures fully achieving the guidance. However, the firm did not manage to beat our higher expectations (sales: -1.2%; adjusted EBITDA: -6.8%) nor those of the consensus (sales -0.3%; adjusted EBITDA: -3.8%). We are nonetheless fine with the miss as it does not change our strong view on Merck. On a closer look, this miss mainly stemmed from the various developments in Life Sciences, where COVID-19-related business decelerated faster than anticipated and where there w
The Q3 results were once again above our expectations (sales: +2.4%; adjusted EBITDA: +1.5%) as well as the consensus (sales: +1.6%; adjusted EBITDA: +1.5%). However some investors required more explanations so as to give the share price a strong intra-day reversal, which we have not see for quite a while. The management provided the explanations required to understand all the moves in the reported figures and the fine-tuning of the guidance has not changed our positive view.
Merck continues to perform pretty well in the last quarter and delivered another all-around beat while continuing to bid on long-term growth. During the quarter, it achieved robust bottom and top-line growth and has made some additional vital clinical advancements in its pipelines. The exceptional performance in the quarter was led by robust growth of main products, which include Bridion, Gardasil, and Keytruda. For pediatric cases, Vaxneuvance has received an extended approval from the FDA. The
Companies: Merck KGaA (0O14:LON)Merck & Co., Inc. (MRK:NYS)
Baptista Research
Merck reported another estimate-beating quarter. We hope investors will not be too upset when Merck’s performance no longer meets expectations. This might take quite a while as a second driver has joined Performance Solutions: Semiconductor Solutions. The latter seems to be able to stabilise its high growth rates. Healthcare lagged behind more than expected. Our estimates were beaten by +5.5% at the top line and by +9.9% at the adjusted EBITDA level (consensus: +2.7% and +4.5%, respectively).
Merck had a decent start to 2022 and achieved noteworthy clinical advancements over the research pipeline, and Acceleron has been successfully integrated. The company has shown strong commercial execution over a wide set of key drivers of growth mainly Animal health, Gardasil, and Keytruda. The biggest outperformer for the company was the molnupiravir which, despite initial doubts, generated $3.2 billion in revenues, exceeding the $500 million expected by Wall Street analysts. Merck’s business o
Merck’s figures were once again strong although they didn’t beat consensus by that much (sales: +0.3%; profitability: +0.4%). Our expectations had been a notch too high (sales -0.7%; profitability: -0.4%), which we do not see as meaningful as the miss at the profitability level mainly stemmed from too-high corporate costs. Investors seemed to have an issue with the new detailed guidance, which left little room for consensus revisions. The lowered guidance for Covid-19-related sales might be a
Merck reported a good set of figures, but profitability did not fully match our very optimistic expectations (sales: 0.9%; adjusted EBITDA: -4.1%). Likewise for consensus (sales: +1.3%; adjusted EBITDA: -1.3%). It looks as if pharma was troubled by something temporary but nothing structural. Nevertheless, the company fully delivered towards its guidance. The strong dividend proposal and the qualitative guidance make us quite optimistic for the current year.
Merck delivered a remarkable financial execution in the third quarter which is expected to continue in the upcoming result. The investments that the management is making in their strong pipeline and portfolio, as well as in business development providing critical advances and long-term value to patients and shareholders. The increasing popularity of their Molnupiravir medication against Covid-19 across the globe has been an important growth driver. The management has also continued to implement
This looks to be the new motto of Merck’s refurbished R&D pipeline. The strong cut in clinical programmes (50% up to 11/11/2021) has been quietly done. This reminds us of 2014/15, when Merck did something similar. This time, the trigger might have been the understanding that a drug candidate could not be developed in all and every suitable indication. This should be positive for the R&D spend.
We are not about to forget Process Solutions’ continued strong momentum, but Electronics has stepped quite impressively on the stage in recent quarters due to the roaring demand for chips from many industries. Healthcare was quite good, but suffered a bit from its Chinese business. The lifted guidance confirmed our strong view on Merck. The next potential catalyst might be the update on Merck Healthcare’s R&D pipeline on 22/11/2021.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Merck KGaA. We currently have 1 research reports from 8 professional analysts.
Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our web
Companies: Shield Therapeutics Plc
Edison
Cambridge Nutritional Sciences (CNS) has provided a trading update for the 12 months to 31 March 2024, noting that a combination of strong sales growth and significant margin improvements, driven by operational efficiencies, have played key factors in the group’s expectation of being adjusted EBITDA positive in FY 2024. Revenues are expected to be £9.8m (30% YoY growth), ahead of our £9.0m forecast, with gross profits expected to exceed £6m, which is again ahead of our year-end forecast of £5.6m
Companies: Cambridge Nutritional Sciences PLC
Cavendish
Companies: Warpaint London PLC
Shore Capital
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
22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARV CTL AFRN FEN HUW TENG BBSN EAAS VAL
Hybridan
Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol
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Companies: e-Therapeutics plc
Companies: IGP RUA BOOM
Venture Life has reported FY23 results to December 2023, following the February trading update. Revenues grew 17% in the year to £51.4m (our est. £50.7m) and adjusted EBITDA was £11.6m (our est. £11.6m). Cash conversion was 85%, generating £9.8m of cash from operations. Cash generation and no M&A in 2023 allowed the company to de-lever, closing FY23 with net debt to adjusted EBITDA at 1.3x. Management have focused on growth with three therapy areas generating double-digit revenue growth and onli
Companies: Venture Life Group Plc
17th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARS TIDE SCE SNX ECK CNS TST SPEC SSTY
Total reported revenues and other income were $17.5m (our forecast $16m) in 2023 vs $5.5m in 2022. The composition of that revenue was different to our expectations such that Accrufer US revenues of $11.6m compared with $3.6m in 2022 but came in below our estimate of $13.6m. In the release, the company has noted that the methodology used by the third-party data provider for US Accrufer scrips has resulted in an overstatement for 2023. Revised figures for 2023 have been given showing 77,000 total
ANGLE’s investment case rests on where Parsortix’s position in mainstream cancer diagnostics eventually lands. The place of liquid biopsies is now established and, increasingly, the additional clinical value that CTC (circulating tumour cells) assays bring is becoming clear. Addressing the many, varied opportunities directly is challenging and time consuming, with numerous barriers to overcome. Management is creating industry awareness through its demonstration and acceleration activities, which
Companies: ANGLE plc
Trinity Delta
Companies: Futura Medical plc
Liberum
23rd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: Bidstack Group (BIDS.L) has left the AIM market What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to
Companies: ELCO BOIL SAR GTC WJG CCS AREC
Warpaint London's strategy is to provide customers with access to an extensive range of high-quality and affordable cosmetics. Its focus has been to develop its flagship brand, W7, while capitalising on the growth potential of e-commerce and international expansion. Although the pandemic caused the temporary closure of a number of customer retail outlets, the business remains in a strong position thanks to management’s agility. Cash has been conserved and the business is now debt free. Given its
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