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>This is our first report on Cardinal Health, one of the largest wholesalers within the healthcare domain in the U.S.</li><li>The company delivered a mixed result in the last quarter surpassing revenue expectations of Wall Street but missing out on earnings.</li><li>Cardinal delivered higher than its expectations in its Pharma segment despite managing industry-wide inflationary headwinds.</li></ul>

This is our first report on Cardinal Health, one of the largest wholesalers within the healthcare domain in the U.S.The company delivered a mixed result in the last quarter surpassing revenue expectations of Wall Street but missing out on earnings.Cardinal delivered higher than its expectations in its Pharma segment despite managing industry-wide inflationary headwinds.

Cardinal Health Inc.: Initiation of Coverage – Positioning In An Oligopolistic Market & Key Drivers

Global Healthcare Analyst

Tina Banerjee

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<li>
<a href="https://www.smartkarma.com/entities/telix-pharmaceuticals-ltd" target="_blank" data-smartkarma-citation="entities:26052:1" rel="noopener">Telix Pharmaceuticals (TLX AU)</a> has launched its prostate cancer imaging product, Illuccix in the U.S. in April 2022. The U.S. total addressable market value is estimated at $750 million.    </li>
<li>The U.S. commercial launch of Illuccix is off to a strong start. Illuccix generated revenue of $13.6 million in the U.S. in the ten weeks following first commercial sales.</li>
<li>Telix is progressing marketing authorization applications for Illuccix in Europe and Canada. The company’s partners are advancing toward Illuccix launch in China and South Korea.</li>
</ul>



Telix Pharmaceuticals (TLX AU) has launched its prostate cancer imaging product, Illuccix in the U.S. in April 2022. The U.S. total addressable market value is estimated at $750 million.    
The U.S. commercial launch of Illuccix is off to a strong start. Illuccix generated revenue of $13.6 million in the U.S. in the ten weeks following first commercial sales.
Telix is progressing marketing authorization applications for Illuccix in Europe and Canada. The company’s partners are advancing toward Illuccix launch in China and South Korea.


Telix Pharmaceuticals (TLX AU): Illuccix Launched in US; Large Market Opportunity; Potential to Grow

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Guangzhou Baiyunshan Pharmaceutical / Equity Bottom-Up

Guangzhou Baiyunshan Pharmaceutical (874 HK)

The restructuring of China's drug distribution industry continues with <a href="https://www.smartkarma.com/entities/276" target="_blank" data-smartkarma-citation="entities:276:1">Baiyunshan Phrmcl Hldgs Co Ltd (874 HK)</a>'s pending buyout of <a href="https://www.smartkarma.com/entities/1118" target="_blank" data-smartkarma-citation="entities:1118:1">Walgreens Boots Alliance Inc (WBA US)</a>'s stake in the two companies' 50/50 JV. The transaction comes on the heels of <a href="https://www.smartkarma.com/entities/1533" target="_blank" data-smartkarma-citation="entities:1533:1">Cardinal Health Inc (CAH US)</a>'s sale of its China drug distribution business to <a href="https://www.smartkarma.com/entities/228" target="_blank" data-smartkarma-citation="entities:228:1">Shanghai Pharmaceuticals H (2607 HK)</a>. This Insight will discuss the transaction, industry backdrop, and implications. The transaction looks slightly accretive on Baiyunshan's 2016's pro forma results. Even though we think that the transaction is positive for Baiyunshan Pharmaceutical Holdings, we are not fans of the stock because of the company's plodding financial performance (as reflected in declining ROA and ROE).

The restructuring of China's drug distribution industry continues with Baiyunshan Phrmcl Hldgs Co Ltd (874 HK)'s pending buyout of Walgreens Boots Alliance Inc (WBA US)'s stake in the two companies' 50/50 JV. The transaction comes on the heels of Cardinal Health Inc (CAH US)'s sale of its China drug distribution business to Shanghai Pharmaceuticals H (2607 HK). This Insight will discuss the transaction, industry backdrop, and implications. The transaction looks slightly accretive on Baiyunshan's 2016's pro forma results. Even though we think that the transaction is positive for Baiyunshan Pharmaceutical Holdings, we are not fans of the stock because of the company's plodding financial performance (as reflected in declining ROA and ROE).

China Drug Distribution: More "Two Invoice" Changes

Shanghai Pharmaceuticals / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/228" target="_blank" data-smartkarma-citation="entities:228:1">Shanghai Pharmaceuticals H (2607 HK)</a> has agreed to acquire <a href="https://www.smartkarma.com/entities/1533" target="_blank" data-smartkarma-citation="entities:1533:1">Cardinal Health Inc (CAH US)</a> 's China distribution business for US$1.2 billion (subject to adjustments) -- a price that is in line with expectations. See <a href="https://www.smartkarma.com/insights/cardinal-to-depart-china-a-good-play-for-distributors" target="_blank" data-smartkarma-citation="insights:12295">Cardinal to Depart China: A Good Play for Distributors</a> for background information.The most significant variation from our prior estimates is the profitability of the business (and the earnings multiples). The trailing EBITDA of US$83 million (2.2% EBITDA margin) is less than half of the…

Shanghai Pharmaceuticals H (2607 HK) has agreed to acquire Cardinal Health Inc (CAH US) 's China distribution business for US$1.2 billion (subject to adjustments) -- a price that is in line with expectations. See Cardinal to Depart China: A Good Play for Distributors for background information.The most significant variation from our prior estimates is the profitability of the business (and the earnings multiples). The trailing EBITDA of US$83 million (2.2% EBITDA margin) is less than half of the…

Shanghai Pharma Gets Cardinal Health Deal

One of the questions posed during the discussion of <a href="https://www.smartkarma.com/entities/1533" target="_blank" data-smartkarma-citation="entities:1533:1">Cardinal Health Inc (CAH US)</a> 's plan to sell its China drug distribution business was the undemanding valuation of US$1.2-1.5 billion (estimated 6.0-7.5x trailing EBITDA). We now have several quarters' results from the leading distributors which reflect the impact of the introduction of the "two invoice" policy and elimination of the 15% markup on drugs for hospitals. As shown below, industry growth is decelerating. The impact varies by company…

One of the questions posed during the discussion of Cardinal Health Inc (CAH US) 's plan to sell its China drug distribution business was the undemanding valuation of US$1.2-1.5 billion (estimated 6.0-7.5x trailing EBITDA). We now have several quarters' results from the leading distributors which reflect the impact of the introduction of the "two invoice" policy and elimination of the 15% markup on drugs for hospitals. As shown below, industry growth is decelerating. The impact varies by company…

Deceleration Likely Driving Cardinal Valuation

United States

Cardinal Health, Inc. provides complementary products and services to healthcare providers and manufacturers.  The Company's services include pharmaceutical distribution, health-care product manufacturing, distribution and consulting services, drug delivery systems development, pharmaceutical packaging, automated dispensing systems manufacturing, and retail pharmacy franchising.

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Cardinal Health (CAH US)

Cardinal Health Inc.: Initiation of Coverage – Positioning In An Oligopolistic Market & Key Drivers

This is our first report on Cardinal Health, one of the largest wholesalers within the healthcare domain in the U.S. The company delivered a mixed...

Baptista Research

Telix Pharmaceuticals (TLX AU): Illuccix Launched in US; Large Market Opportunity; Potential to Grow

Telix has launched Illuccix in the U.S., having a billion-dollar market opportunity. The company is progressing toward launch of the product in...

Tina Banerjee

China Drug Distribution: More "Two Invoice" Changes

The restructuring of China's drug distribution industry continues with Baiyunshan Phrmcl Hldgs Co Ltd (874 HK)'s pending buyout of Walgreens Boots...

Kemp Dolliver, CFA

Shanghai Pharma Gets Cardinal Health Deal

Shanghai Pharmaceuticals H (2607 HK) has agreed to acquire Cardinal Health Inc (CAH US) 's China distribution business for US$1.2 billion (subject...

Kemp Dolliver, CFA

Deceleration Likely Driving Cardinal Valuation

One of the questions posed during the discussion of Cardinal Health Inc (CAH US) 's plan to sell its China drug distribution business was the...

Kemp Dolliver, CFA

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