Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/venus-medtech-hangzhou-inc" target="_blank" data-smartkarma-citation="entities:28257:1" rel="noopener">Venus MedTech (2500 HK)</a> is facing competition in China TAVR market and its market share has deteriorated to 70% in 2021 from 79.3% in 2018.</li>
<li>Due to declining ASP and low pricing power, the company’s gross profit margin has declined to 78% in 2021 from 86% in 2018.</li>
<li>During 2021, the company’s loss expanded 103% y/y to RMB372 million, mainly due to elevated selling and distribution expenses and R&amp;D costs.</li>
</ul>



Venus MedTech (2500 HK) is facing competition in China TAVR market and its market share has deteriorated to 70% in 2021 from 79.3% in 2018.
Due to declining ASP and low pricing power, the company’s gross profit margin has declined to 78% in 2021 from 86% in 2018.
During 2021, the company’s loss expanded 103% y/y to RMB372 million, mainly due to elevated selling and distribution expenses and R&amp;D costs.


Venus MedTech (2500 HK): Overcrowded Market, Margin Pressure, Expanding Loss

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<li>
<a href="https://www.smartkarma.com/entities/abbott-laboratories" target="_blank" data-smartkarma-citation="entities:11987:1" rel="noopener">Abbott Laboratories' (ABT US)</a> diversified business mix continued to prove highly resilient even during the worst period of pandemic. Strong consumer-facing and diagnostic businesses mitigated the slump in hospital-related business.</li>
<li>Dominant positioning in the Covid-19 diagnostic should augur well during the emergence of Omicron variant. Double-digit growth in non-Covid diagnostics portfolio enhances conviction in post-Covid era.   </li>
<li>Existing leadership positioning and multiple new product launches in large and high-growth market segments, including structural heart and diabetes remain long-term growth driver for Abbott.</li>
</ul>



Abbott Laboratories' (ABT US) diversified business mix continued to prove highly resilient even during the worst period of pandemic. Strong consumer-facing and diagnostic businesses mitigated the slump in hospital-related business.
Dominant positioning in the Covid-19 diagnostic should augur well during the emergence of Omicron variant. Double-digit growth in non-Covid diagnostics portfolio enhances conviction in post-Covid era.   
Existing leadership positioning and multiple new product launches in large and high-growth market segments, including structural heart and diabetes remain long-term growth driver for Abbott.


2022 High Conviction: Abbott Laboratories – Resilient Business Model at Reasonable Valuation

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

Microport Cardioflow Medtech / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/microport-cardioflow-medtech-corporation" target="_blank" data-smartkarma-citation="entities:31084:1" rel="noopener">MicroPort CardioFlow (1844972D HK)</a> has filed a PHIP in conjunction with its planned listing on the HKEX. This Insight discusses the incremental disclosures; developments in the TAVR market; and the nascent TMV opportunity. We tag this Insight as Bullish pending announcement of the offering's terms.

MicroPort CardioFlow (1844972D HK) has filed a PHIP in conjunction with its planned listing on the HKEX. This Insight discusses the incremental disclosures; developments in the TAVR market; and the nascent TMV opportunity. We tag this Insight as Bullish pending announcement of the offering's terms. 

MicroPort CardioFlow: PHIP Updates and More on TMV

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<a href="https://www.smartkarma.com/entities/microport-cardioflow-medtech-corporation" target="_blank" data-smartkarma-citation="entities:31084:1" rel="noopener">MicroPort CardioFlow (1844972D HK)</a> is a leading transcatheter heart valve medical device company in China. It started as an incubation project within <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a>, the controlling shareholder. MicroPort is pre-marketing for a Hong Kong IPO to raise $300 million, according to press reports. MicroPort was last valued at a post-money valuation of $1.2 billion in April 2020 (Series D).   <div class="content-highlight">MicroPort is at an early stage of development as VitaFlow, its first TAVR (transcatheter aortic heart valve replacement) product, was commercialised only in August 2019. Investor sentiment on the sector is strong with <a href="https://www.smartkarma.com/entities/venus-medtech-hangzhou-inc" target="_blank" data-smartkarma-citation="entities:28257:1" rel="noopener">Venus MedTech (2500 HK)</a> and <a href="https://www.smartkarma.com/entities/peijia-medical" target="_blank" data-smartkarma-citation="entities:28862:1" rel="noopener">Peijia Medical (9996 HK)</a> trading 2.2 and 1.8 times their respective IPO prices. With a large addressable market opportunity and VitaFlow’s potentially best-in-class clinical data, we believe that MicroPort is an another attractive play on this market.</div>

MicroPort CardioFlow (1844972D HK) is a leading transcatheter heart valve medical device company in China. It started as an incubation project within Microport Scientific (853 HK), the controlling shareholder. MicroPort is pre-marketing for a Hong Kong IPO to raise $300 million, according to press reports. MicroPort was last valued at a post-money valuation of $1.2 billion in April 2020 (Series D).   MicroPort is at an early stage of development as VitaFlow, its first TAVR (transcatheter aortic heart valve replacement) product, was commercialised only in August 2019. Investor sentiment on the sector is strong with Venus MedTech (2500 HK) and Peijia Medical (9996 HK) trading 2.2 and 1.8 times their respective IPO prices. With a large addressable market opportunity and VitaFlow’s potentially best-in-class clinical data, we believe that MicroPort is an another attractive play on this market.

MicroPort CardioFlow IPO Initiation: To Save a Life

MicroPort Cardioflow Medtech Corporation, a 67%-owned subsidiary of MicroPort Scientific, is a leading medical device company in China. The company’s primary product is VitaFlow, a transcatheter aortic valve implantation (“TAVI” or “TAVR”) device, used to treat Aortic stenosis. TAVR is an emerging medical procedure in China with a handful of competitors at the moment.  The company has filed an Application Proof to list on the HKEX.This Insight will discuss the company’s products, market opportunity, IP, etc. We will provide more details closer to the offering in a future Insight.

MicroPort Cardioflow Medtech Corporation, a 67%-owned subsidiary of MicroPort Scientific, is a leading medical device company in China. The company’s primary product is VitaFlow, a transcatheter aortic valve implantation (“TAVI” or “TAVR”) device, used to treat Aortic stenosis. TAVR is an emerging medical procedure in China with a handful of competitors at the moment.  The company has filed an Application Proof to list on the HKEX.This Insight will discuss the company’s products, market opportunity, IP, etc. We will provide more details closer to the offering in a future Insight.

United States

Edwards Lifesciences Corporation designs, develops, manufactures, and markets products and services to treat late-stage cardiovascular disease.  The Company's products include tissue replacement heart valves, heart valve repair products, hemodynamic monitoring devices, angioscopy equipment, oxygenators, and pharmaceuticals.  Edwards supplies its products to customers located worldwide.

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Edwards Lifesciences (EW US)

Venus MedTech (2500 HK): Overcrowded Market, Margin Pressure, Expanding Loss

Despite shares plunged 82% from highs, Venus MedTech is not a bottom-fishing idea, as unfavorable competitive landscape in its operating market...

Tina Banerjee

2022 High Conviction: Abbott Laboratories – Resilient Business Model at Reasonable Valuation

With pandemic-resistant diversified business model, Abbott is well-positioned for high single-digit long-term revenue growth.

Tina Banerjee

MicroPort CardioFlow: PHIP Updates and More on TMV

MicroPort CardioFlow plans an HKEX listing. This Insight discusses updated disclosures in its PHIP filing; developments in the TAVR market; the...

Kemp Dolliver, CFA

MicroPort CardioFlow IPO Initiation: To Save a Life

MicroPort is pre-marketing for an HK IPO to raise $300 million. With a large addressable market opportunity and VitaFlow’s potentially best-in...

Arun George

Microport Cardioflow: Winning in TAVR

We provide our initial thoughts on the proposed listing of medical device (TAVR) company MicroPort Cardioflow on the HKEX.

Kemp Dolliver, CFA

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