In today’s briefing:
- SpinTalk: The Bausch Corporate Overhaul Is More Illusory Than Substantive At Least for Now
- Takara Bio (4974 JP): FY23 Looks Uncertain as COVID-19 PCR Testing Number Decline Is Inevitable
- Pre-IPO Betters Medical Investment Holdings – The Industry, the Business and the Concerns
SpinTalk: The Bausch Corporate Overhaul Is More Illusory Than Substantive At Least for Now
- Bausch Health Companies (BHC US)‘s share price reversal over the past year has eliminated the substantial gains achieved after it announced plans for a major corporate overhaul in August 2020.
- No substantive change to BHC’s current holding company structure and leverage ratio will result from the imminent execution of the Bausch & Lomb IPO which is less transformational than expected.
- The potential for a more value-creating overhaul remains, but timing is uncertain. Until the relevant catalysts come into play, we expect the BHC share price to tread water at best.
Takara Bio (4974 JP): FY23 Looks Uncertain as COVID-19 PCR Testing Number Decline Is Inevitable
- Takara Bio Inc (4974 JP) reported 55% y/y growth in revenue during the first nine months of FY22, mainly driven by 129% y/y surge in COVID-19 PCR test reagent revenue.
- Although Takara Bio is likely to beat its FY22 guidance, uncertainty is prevailing for revenue earning potential beyond FY22, when the COVID-19 test demand will fade away.
- We would stay away from this idea for now and wait on the sideline for a clarity of growth potential and recovery in the base business in FY23 and beyond.
Pre-IPO Betters Medical Investment Holdings – The Industry, the Business and the Concerns
- The MWA market that Betters belongs to has showed rapid growth and large potential. Obviously, Betters would benefit from it based on its existing products and leading market position.
- However, the medical device industry in China is subject to strict policy supervision. It cannot rule out the possibility that the Company’s products would be included in the centralized procurement.
- In terms of valuation, Micro-Tech Nanjing Co Ltd (688029 CH) could be a comparable company, but Betters’ valuation should be lower than it.
Before it’s here, it’s on Smartkarma
