Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/intuitive-surgical-inc" target="_blank" data-smartkarma-citation="entities:15853:1" rel="noopener">Intuitive Surgical (ISRG US)</a> Q1 revenue and EPS beat consensus. High-teens procedure volume growth is the brightest spot and management raised full-year 2022 procedure growth guidance to 12–16%.</li>
<li>After a strong placement in last couple of quarters, Intuitive is seeing some near-term softening of its system placement pipeline in the U.S.</li>
<li>In near-term, macro headwinds including regional waves of COVID, staffing pressure at hospitals, component and raw material availability, and logistic delays will remain biggest overhang for the company.</li>
</ul>



Intuitive Surgical (ISRG US) Q1 revenue and EPS beat consensus. High-teens procedure volume growth is the brightest spot and management raised full-year 2022 procedure growth guidance to 12–16%.
After a strong placement in last couple of quarters, Intuitive is seeing some near-term softening of its system placement pipeline in the U.S.
In near-term, macro headwinds including regional waves of COVID, staffing pressure at hospitals, component and raw material availability, and logistic delays will remain biggest overhang for the company.


Intuitive Surgical (ISRG US): 1Q22 Review- Procedure Volume Growth Overshadowed by Macro Headwinds

Thematic (Sector/Industry)

<ul>
<li>Over the last one month, the U.S. healthcare sector remained mostly resilient to the inflation risk and gained 7.1% outperforming S&amp;P 500 index’s gain of 5%.  </li>
<li>Sound financials, high revenue visibility, low or no debt, and cash rich position are some of the reasons for the outperformance.</li>
<li>In this insight, we have handpicked top-quality healthcare sector bets from the S&amp;P 500 index and discussed about their growth stories.</li>
</ul>


Over the last one month, the U.S. healthcare sector remained mostly resilient to the inflation risk and gained 7.1% outperforming S&amp;P 500 index’s gain of 5%.  
Sound financials, high revenue visibility, low or no debt, and cash rich position are some of the reasons for the outperformance.
In this insight, we have handpicked top-quality healthcare sector bets from the S&amp;P 500 index and discussed about their growth stories.


U.S. Healthcare Sector: Ride Out Market Turmoil with High-Quality Large-Cap Ideas

<ul>
<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

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Shanghai MicroPort MedBot Group / Equity Capital Markets

<div>
<p>Shanghai MicroPort MedBot Group (MM), a surgical robot company, raised around US$200m in its Hong Kong IPO.</p>
</div>
<div>
<p>MicroPort MedBot (MM) is a surgical robot company which designs, develops and commercializes surgical robots to assist surgeons in performing complex surgical procedures. It is the only company with a product portfolio covering the five major and fast-growing surgical specialties of laparoscopic, orthopedic, panvascular, natural orifice and percutaneous surgical procedures, as per Frost &amp; Sullivan (F&amp;S).</p>
</div>
<div>
<p>We have looked at the company’s background and products in our earlier notes:</p>
</div>
<div>
<ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/microport-medbot-pre-ipo-robodoc-pre-revenue-has-a-large-competitor-but-a-large-market-as-well" target="_blank" rel="noopener">MicroPort MedBot Pre-IPO - RoboDoc - pre-revenue, has a large competitor but a large market as well</a></li>
<li><a href="https://www.smartkarma.com/insights/microport-medbot-pre-ipo-robodoc-phip-updates-and-a-look-at-its-largest-competitor" target="_blank" rel="noopener">MicroPort MedBot Pre-IPO - RoboDoc - PHIP Updates and a Look at Its Largest Competitor, and</a></li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/microport-medbot-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">MicroPort MedBot Pre-IPO - Thoughts on valuation</a></li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/microport-medbot-pre-ipo-valuation-appears-reasonable-but-sentiment-will-weigh" target="_blank" rel="noopener">MicroPort MedBot Pre-IPO - Valuation Appears Reasonable but Sentiment Will Weigh</a></li>
</ul>
<p>In this note we will talk about the trading updates.</p>
</div>


Shanghai MicroPort MedBot Group (MM), a surgical robot company, raised around US$200m in its Hong Kong IPO.


MicroPort MedBot (MM) is a surgical robot company which designs, develops and commercializes surgical robots to assist surgeons in performing complex surgical procedures. It is the only company with a product portfolio covering the five major and fast-growing surgical specialties of laparoscopic, orthopedic, panvascular, natural orifice and percutaneous surgical procedures, as per Frost &amp; Sullivan (F&amp;S).


We have looked at the company’s background and products in our earlier notes:



MicroPort MedBot Pre-IPO - RoboDoc - pre-revenue, has a large competitor but a large market as well
MicroPort MedBot Pre-IPO - RoboDoc - PHIP Updates and a Look at Its Largest Competitor, and
MicroPort MedBot Pre-IPO - Thoughts on valuation
MicroPort MedBot Pre-IPO - Valuation Appears Reasonable but Sentiment Will Weigh

In this note we will talk about the trading updates.


MicroPort MedBot IPO Trading - Decent Demand But Upside Is Limited from the Top-End

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p><a href="https://www.smartkarma.com/entities/shanghai-microport-medbot-group-co-ltd" target="_blank" data-smartkarma-citation="entities:33485:1" rel="noopener">Shanghai MicroPort MedBot Group (MMG HK)</a> is a surgical robot company which designs, develops and commercialises surgical robots to assist in performing complex surgical procedures. The company has announced the terms for its IPO where it plans to issue 36.2m shares (approx. 4.0% of the total outstanding shares post-IPO) at an indicative IPO price range of HK$36-43.20 per share. At the midpoint of the IPO price range of HK$39.60 per share, MicroPort will raise net proceeds of HK$1,332.3m (US$171.4m) at a market capitalisation of HK$37.7bn and a post-money EV of HK$35.2bn. MicroPort was initially planning to raise about US$0.7-1.0bn through the IPO, however, the offer was significantly downsized to around US$200m.</p><p>MicroPort plans to use about 35.0% of the net IPO proceeds for the development of its core product Toumai and another 21.0% on the company’s orthopedic surgical robots. The company also plans to use 19.0% of the net proceeds on other product candidates and 5.0% on enhancing its manufacturing capacities and supply chain management capabilities. MicroPort also plans to strengthen its product portfolio through in-licensing, acquisition, equity investments and joint ventures and plans to use about 10.0% of the net IPO proceeds for this purpose.</p><p>The company also has entered into cornerstone investment agreements with a number of investors for an aggregate of US$95.0m that will account for 51.6% of the offer shares at the midpoint of the IPO price. These cornerstone investors include Aspex (US$20m), Hillhouse Funds (US$15m), LAV (US$15m), Snow Lake Funds and Accounts (US$15m), Yorkool (US$15m), Cloud Alpha (US$10m) and Artisan (US$5m).</p><p>MicroPort’s product line-up includes three flagship products Toumai (Laparoscopic Surgical Robot), DFVision (3D Electronic Laparoscope) and Honghu (orthopedic surgical robot) and all three are admitted to the NMPA’s innovative medical device special review and approval procedure (known as Green Path). Toumai and Honghu are currently at the registration approval stage while Honghu has received the NMPA approval recently, suggesting that these three products should offer immediate revenue opportunity.</p>

Shanghai MicroPort MedBot Group (MMG HK) is a surgical robot company which designs, develops and commercialises surgical robots to assist in performing complex surgical procedures. The company has announced the terms for its IPO where it plans to issue 36.2m shares (approx. 4.0% of the total outstanding shares post-IPO) at an indicative IPO price range of HK$36-43.20 per share. At the midpoint of the IPO price range of HK$39.60 per share, MicroPort will raise net proceeds of HK$1,332.3m (US$171.4m) at a market capitalisation of HK$37.7bn and a post-money EV of HK$35.2bn. MicroPort was initially planning to raise about US$0.7-1.0bn through the IPO, however, the offer was significantly downsized to around US$200m.MicroPort plans to use about 35.0% of the net IPO proceeds for the development of its core product Toumai and another 21.0% on the company’s orthopedic surgical robots. The company also plans to use 19.0% of the net proceeds on other product candidates and 5.0% on enhancing its manufacturing capacities and supply chain management capabilities. MicroPort also plans to strengthen its product portfolio through in-licensing, acquisition, equity investments and joint ventures and plans to use about 10.0% of the net IPO proceeds for this purpose.The company also has entered into cornerstone investment agreements with a number of investors for an aggregate of US$95.0m that will account for 51.6% of the offer shares at the midpoint of the IPO price. These cornerstone investors include Aspex (US$20m), Hillhouse Funds (US$15m), LAV (US$15m), Snow Lake Funds and Accounts (US$15m), Yorkool (US$15m), Cloud Alpha (US$10m) and Artisan (US$5m).MicroPort’s product line-up includes three flagship products Toumai (Laparoscopic Surgical Robot), DFVision (3D Electronic Laparoscope) and Honghu (orthopedic surgical robot) and all three are admitted to the NMPA’s innovative medical device special review and approval procedure (known as Green Path). Toumai and Honghu are currently at the registration approval stage while Honghu has received the NMPA approval recently, suggesting that these three products should offer immediate revenue opportunity.

MicroPort MedBot IPO: Forecasts, Peer Comparison and Valuation

United States

Intuitive Surgical, Inc. design, manufactures, and markets surgical systems. The Company offers endoscopes, endoscopic retractors and disectors, scissors, scalpels, forceps, needle holders, electrocautery, ultrasonic cutters, and accessories during surgical procedures. Intuitive Surgical operates worldwide.

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Intuitive Surgical (ISRG US)