In today’s briefing:
- Autobio Diagnostics Co Ltd (603658.CH) – Logic Changes
- Santen Pharmaceutical (4536 JP): Future Is Uncertain Beyond Eylea
- M3 4Q Results: Underwhelming Earnings and More Room to Fall
Autobio Diagnostics Co Ltd (603658.CH) – Logic Changes
- The quit of the centralized procurement of chemiluminescence products in Anhui directly put Autobio Diagnostics (603658 CH) in a passive position. The implications could be deeper and more complex than expected.
- Autobio didn’t seize COVID-19 testing opportunities, leading to the doubts about the Company’s market sensitivity and team execution, thus losing the opportunity to generate substantial cash flow for future acquisitions.
- Together with weak internationalization business, Autobio’s future performance growth could be uncertain and may not be able to support the rapid valuation expansion as expected.
Santen Pharmaceutical (4536 JP): Future Is Uncertain Beyond Eylea
- Santen Pharmaceutical (4536 JP) is the market leader for prescription ophthalmic pharmaceuticals in Japan, with 52% market share. 68% of total revenue comes from domestic market.
- Santen’s key partnered drug, Eylea, which contributes 29% of total revenue, is set to lose patent protection in Japan this year.
- Eylea is expected to face competition from biosimilars as well as new biologic drugs launched. This will limit Santen’s near-term growth potential.
M3 4Q Results: Underwhelming Earnings and More Room to Fall
- M3 Inc (2413 JP) reported 4QFY03/2022 and full-year FY03/2022 results yesterday. Revenue grew 18.8% YoY to JPY54.0bn (vs consensus JPY51.9bn) while OP dropped 32.2% YoY to JPY10.5bn (vs consensus JPY17.4bn).
- OPM for the quarter declined to 19.5% vs 34.1% a year ago while core business, Medical Platform’s revenues declined 0.9% YoY for the first time since 2QFY03/2018.
- M3’s shares are down 26.5% YTD and we think there is further downside with weakening of the company’s core earnings.
Before it’s here, it’s on Smartkarma
