Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Boston Scientific's innovation portfolio, commercial execution, clinical data, and strategic tuck-in M&A supported its solid second-quarter results where the company delivered an all-around beat.</li><li>Furthermore, their Diagnostics business performed well during the quarter because of the Preventice portfolio and implantable cardiac LUX-Dx.</li><li>Despite the macroeconomic difficulties Boston continues to be well-positioned for a decent 2022 ahead given their category leadership strategy, commercial execution, and robust portfolio.</li></ul>

Boston Scientific's innovation portfolio, commercial execution, clinical data, and strategic tuck-in M&A supported its solid second-quarter results where the company delivered an all-around beat.Furthermore, their Diagnostics business performed well during the quarter because of the Preventice portfolio and implantable cardiac LUX-Dx.Despite the macroeconomic difficulties Boston continues to be well-positioned for a decent 2022 ahead given their category leadership strategy, commercial execution, and robust portfolio.

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/terumo-corp" target="_blank" data-smartkarma-citation="entities:6708:1" rel="noopener">Terumo Corp (4543 JP)</a> earns 56% revenue from cardiac and vascular segment, which is the fastest growing segment of the company. The segment is seeing continued recovery from COVID impact.</li>
<li>For FY23, Terumo guided for cardiac and vascular segment revenue of ¥445.5B (+12% y/y) and adjusted operating profit of ¥113.4B (+22% y/y), leading to operating margin of 25.5% (+200bps y/y).</li>
<li>Over the next five years, Terumo aims for high single-digit revenue growth from the segment, through new product launches and expanding adoption of existing products across disease areas.</li>
</ul>



Terumo Corp (4543 JP) earns 56% revenue from cardiac and vascular segment, which is the fastest growing segment of the company. The segment is seeing continued recovery from COVID impact.
For FY23, Terumo guided for cardiac and vascular segment revenue of ¥445.5B (+12% y/y) and adjusted operating profit of ¥113.4B (+22% y/y), leading to operating margin of 25.5% (+200bps y/y).
Over the next five years, Terumo aims for high single-digit revenue growth from the segment, through new product launches and expanding adoption of existing products across disease areas.


Terumo Corp (4543 JP): A COVID Recovery Play; Cardiac & Vascular Business to Drive Multi-Year Growth

Equity Capital Markets

Boston Scientific / Equity Capital Markets

<ul><li>Despite the ongoing pandemic and macroeconomic headwinds, Boston delivered a reasonably good first-quarter performance driven by improved procedure volume, an innovative portfolio, and strong execution.</li><li>The total operational sales of the company increased 13% year over year in the first quarter of 2022, while organic sales increased 10% above the high end of their guidance range.</li><li>This performance was consistent across all regions, and the management expects most of their businesses to outperform their respective markets.</li></ul>

Despite the ongoing pandemic and macroeconomic headwinds, Boston delivered a reasonably good first-quarter performance driven by improved procedure volume, an innovative portfolio, and strong execution.The total operational sales of the company increased 13% year over year in the first quarter of 2022, while organic sales increased 10% above the high end of their guidance range.This performance was consistent across all regions, and the management expects most of their businesses to outperform their respective markets.

Boston Scientific Corp: Acquisition-Led Growth & Other Drivers

Venus Medtech (Hangzhou) / Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/venus-medtech-hangzhou-inc" target="_blank" data-smartkarma-citation="entities:28257:1" rel="noopener">Venus MedTech (2500 HK)</a> is facing competition in China TAVR market and its market share has deteriorated to 70% in 2021 from 79.3% in 2018.</li>
<li>Due to declining ASP and low pricing power, the company’s gross profit margin has declined to 78% in 2021 from 86% in 2018.</li>
<li>During 2021, the company’s loss expanded 103% y/y to RMB372 million, mainly due to elevated selling and distribution expenses and R&amp;D costs.</li>
</ul>



Venus MedTech (2500 HK) is facing competition in China TAVR market and its market share has deteriorated to 70% in 2021 from 79.3% in 2018.
Due to declining ASP and low pricing power, the company’s gross profit margin has declined to 78% in 2021 from 86% in 2018.
During 2021, the company’s loss expanded 103% y/y to RMB372 million, mainly due to elevated selling and distribution expenses and R&amp;D costs.


Venus MedTech (2500 HK): Overcrowded Market, Margin Pressure, Expanding Loss

<ul><li>Boston Scientific's third-quarter results were impacted by the coronavirus more than anticipated as the new variants surged globally and some electric procedures were deferred.</li><li>The company’s third-quarter operational revenues increased by 10% compared to 2020, while organic sales increased by 11% compared to 2020 and 4% compared to 2019.</li><li>Despite the short-term impact of procedure volumes, Boston Scientific witnessed momentum in new product launches, generated strong clinical evidence, and performed broadly across the portfolio.</li></ul>

Boston Scientific's third-quarter results were impacted by the coronavirus more than anticipated as the new variants surged globally and some electric procedures were deferred.The company’s third-quarter operational revenues increased by 10% compared to 2020, while organic sales increased by 11% compared to 2020 and 4% compared to 2019.Despite the short-term impact of procedure volumes, Boston Scientific witnessed momentum in new product launches, generated strong clinical evidence, and performed broadly across the portfolio.

Boston Scientific Corporation - Investment Thesis

United States

Boston Scientific Corporation develops, manufactures, and markets minimally invasive medical devices. The Company's products are used in interventional cardiology, cardiac rhythm management, peripheral interventions, electrophysiology, neurovascular intervention, endoscopy, urology, gynecology and neuromodulation.

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Boston Scientific (BSX US)

Boston Scientific: Major Drivers

Boston Scientific's innovation portfolio, commercial execution, clinical data, and strategic tuck-in M&A supported its solid second-quarter...

Baptista Research

Terumo Corp (4543 JP): A COVID Recovery Play; Cardiac & Vascular Business to Drive Multi-Year Growth

Driven by continued recovery from the impact of COVID and new product launches, Terumo is well-positioned for consistent revenue growth. Cardiac...

Tina Banerjee

Boston Scientific Corp: Acquisition-Led Growth & Other Drivers

Despite the ongoing pandemic and macroeconomic headwinds, Boston delivered a reasonably good first-quarter performance driven by improved...

Baptista Research

Venus MedTech (2500 HK): Overcrowded Market, Margin Pressure, Expanding Loss

Despite shares plunged 82% from highs, Venus MedTech is not a bottom-fishing idea, as unfavorable competitive landscape in its operating market...

Tina Banerjee

Boston Scientific Corporation - Investment Thesis

Boston Scientific's third-quarter results were impacted by the coronavirus more than anticipated as the new variants surged globally and some...

Baptista Research

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