In today’s briefing:
- Sumitomo Dainippon Pharma Co (4506 JP): New Launches Ensure Post-Latuda Growth Trajectory
- Pre-IPO ADICON Holdings Limited – Uncertain Growth and Outlook in Post-COVID Era
Sumitomo Dainippon Pharma Co (4506 JP): New Launches Ensure Post-Latuda Growth Trajectory
- Sumitomo Dainippon Pharma Co (4506 JP)‘s flagship drug Latuda will loss patent protection in the U.S. in 2023. Latuda is already seeing revenue erosion.
- Sumitomo is expected to reap the benefit of new products launched in the U.S. market in 2020 and 2021. These are expected to gradually become next growth drivers.
- The company has a rich pipeline and targets to launch at least two new drugs in the U.S. in next two years.
Pre-IPO ADICON Holdings Limited – Uncertain Growth and Outlook in Post-COVID Era
- The revenue generated from COVID-19 business would not be sustainable in the long term. The lower price of COVID-19 tests, DRGs, centralized procurement and fierce competition would drag down margins.
- ADICON hasn’t established enough advantage and moat to secure its leading position and could be overtaken by competitors.The weak R&D makes ADICON difficult to gain an edge in esoteric tests.
- Considering the fierce competition, lower margins, the decline of COVID-19 business revenue, and poor liquidity and IPO market sentiment in HKEX, the PE could be below 10.
Before it’s here, it’s on Smartkarma
