In today’s briefing:
- Akums Drugs and Pharmaceuticals IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
- Pullback Underway; Getting Defensive; Long-Term RS Bottoms for Defensives Is a Reason for Caution
- Akums Drugs and Pharmaceuticals IPO: Subscribe on Favorable Industry Tailwind and Reasonable Pricing
- Intuitive Surgical Inc.: Expansion of da Vinci 5 (dV5) Products & Services & Other Major Drivers
- Novartis AG (NVS): Acquisition of Mariana Oncology for Expansion of Oncology Portfolio
Akums Drugs and Pharmaceuticals IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
- Akums Drugs and Pharmaceuticals (0200361D IN) is looking to raise up to US$222m in its upcoming India IPO.
- Akums Drugs and Pharmaceuticals (ADP) is a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas.
- In our previous note, we talked about the company’s historical performance. In this note, we talk about its RHP updates and share our quick thoughts on peer comparison and valuation.
Pullback Underway; Getting Defensive; Long-Term RS Bottoms for Defensives Is a Reason for Caution
- Our long-term bullish outlook (since early-November 2023) remains intact. With that said, we believe a 1-3-month pullback has likely begun.
- Supports to watch are at $110 on MSCI ACWI (ACWI-US) and $41-42 on MSCI EM (EEM-US), and whether these levels hold or not will determine the severity of the pullback.
- The S&P 500 is violating its 20-day MA, Europe’s EURO STOXX 50 is breaking below 4884, and Japan’s TOPIX appears to be staging a false breakout at the 2800-2815 level
Akums Drugs and Pharmaceuticals IPO: Subscribe on Favorable Industry Tailwind and Reasonable Pricing
- Akums Drugs and Pharmaceuticals, the largest India-focused CDMO, has set price band of Rs 646–679/share for its upcoming IPO. The company has blue chip and sticky clientele.
- The Indian domestic CDMO market is forecasted to grow at a CAGR of 14.3% during FY24–28, nearly doubling its historical growth rate.
- Akums seeks a P/E valuation of 28.7–30.2x, which seems to be reasonable compared with listed peers.
Intuitive Surgical Inc.: Expansion of da Vinci 5 (dV5) Products & Services & Other Major Drivers
- Intuitive Surgical experienced healthy performance in the second quarter of 2024, with strong capital placements and solid procedure growth.
- Several advancements were made, with the rollout of da Vinci 5, stability of Ion supply, and expanding da Vinci SP installs in Europe among the highlights.
- The company also faced some headwinds related to multiport procedures.
Novartis AG (NVS): Acquisition of Mariana Oncology for Expansion of Oncology Portfolio
- Novartis’s second quarter 2024 earnings were decent and revealed a company strongly positioned and confident of its continued growth trajectory.
- From a financial standpoint, the Swiss multinational pharmaceutical firm posted a solid performance with 11% quarter-on-quarter growth in sales, profits expanding 19%, and a core margin of 39.6%.
- The robustness in financials was driven by commendable productivity as well as sustained sales growth.
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