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>Despite the healthcare disruptions in several key geographies, Edwards Lifesciences delivered a good result surpassing the analyst consensus estimates in terms of revenues as well as earnings.</li><li>In the quarter Edwards made a series of some external investments in several promising early-stage technologies.</li><li>We provide the stock of Edwards Lifesciences with a ‘Hold’ rating and a revision in the target price.</li></ul>

Despite the healthcare disruptions in several key geographies, Edwards Lifesciences delivered a good result surpassing the analyst consensus estimates in terms of revenues as well as earnings.In the quarter Edwards made a series of some external investments in several promising early-stage technologies.We provide the stock of Edwards Lifesciences with a ‘Hold’ rating and a revision in the target price.

Edwards Lifesciences: Sapien-3 Ultra Resilia Valve Launch & Other Developments

<ul><li>This is our first report on Edwards Lifesciences, a market leading manufacturer of heart valve systems and repair products.</li><li>The last quarter was highly disappointing as Edwards failed to meet Wall Street expectations in terms of revenues as well as earnings.</li><li>Besides, their market-leading SAPIEN 3 Ultra transcatheter aortic heart valve combines Edwards' ground-breaking RESILIA technology.</li></ul>

This is our first report on Edwards Lifesciences, a market leading manufacturer of heart valve systems and repair products.The last quarter was highly disappointing as Edwards failed to meet Wall Street expectations in terms of revenues as well as earnings.Besides, their market-leading SAPIEN 3 Ultra transcatheter aortic heart valve combines Edwards' ground-breaking RESILIA technology.

Edwards Lifesciences Corporation: Initiation of Coverage – Recent Approvals & Other Drivers

Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

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<a href="https://www.smartkarma.com/entities/orbusneich-medical-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:34918:1" rel="noopener">OrbusNeich Medical Group (NEICHZ HK)</a> is among the top six players in PCI balloon markets in terms of sales volume in multiple countries including China, Japan, the U.S., and Europe.</li>
<li>OrbusNeich earns ~60% of revenue from Europe, Japan, and the U.S. The company’s high exposure to international markets safeguards it from the low prices commanded by China’s centralized procurement system.</li>
<li>With diversified product portfolio, robust inhouse production facilities, established global sales network, rich pipeline enabling continuous launching of new products, and growing market demand, OrbusNeich is well-positioned for strong growth.</li>
</ul>



OrbusNeich Medical Group (NEICHZ HK) is among the top six players in PCI balloon markets in terms of sales volume in multiple countries including China, Japan, the U.S., and Europe.
OrbusNeich earns ~60% of revenue from Europe, Japan, and the U.S. The company’s high exposure to international markets safeguards it from the low prices commanded by China’s centralized procurement system.
With diversified product portfolio, robust inhouse production facilities, established global sales network, rich pipeline enabling continuous launching of new products, and growing market demand, OrbusNeich is well-positioned for strong growth.


Pre-IPO OrbusNeich Medical Group: Large Global Exposure Protects from Negative Price Effect in China

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<a href="https://www.smartkarma.com/entities/shockwave-medical-inc" target="_blank" data-smartkarma-citation="entities:28730:1" rel="noopener">Shockwave Medical Inc (SWAV US)</a>, with its differentiated local delivery of sonic pressure waves for the treatment of calcified plaque, seeks to establish a new standard of care through IVL.  </li>
<li>The company is advancing IVL system for multiple large addressable markets totaling over $8.5B. Shockwave’s revenue has five-year CAGR of 244%, with continued improvement in gross margins.</li>
<li>Ongoing clinical programs to expand geographies and indications should further accelerate growth. Recently, the company obtained marketing approval in China and Japan.</li>
</ul>



Shockwave Medical Inc (SWAV US), with its differentiated local delivery of sonic pressure waves for the treatment of calcified plaque, seeks to establish a new standard of care through IVL.  
The company is advancing IVL system for multiple large addressable markets totaling over $8.5B. Shockwave’s revenue has five-year CAGR of 244%, with continued improvement in gross margins.
Ongoing clinical programs to expand geographies and indications should further accelerate growth. Recently, the company obtained marketing approval in China and Japan.


Shockwave Medical Inc (SWAV US): An Emerging High-Quality Cardiovascular Devices Idea

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

United States

Edwards Lifesciences Corporation designs, develops, manufactures, and markets products and services to treat late-stage cardiovascular disease.  The Company's products include tissue replacement heart valves, heart valve repair products, hemodynamic monitoring devices, angioscopy equipment, oxygenators, and pharmaceuticals.  Edwards supplies its products to customers located worldwide.

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Edwards Lifesciences (EW US)

Edwards Lifesciences: Sapien-3 Ultra Resilia Valve Launch & Other Developments

Despite the healthcare disruptions in several key geographies, Edwards Lifesciences delivered a good result surpassing the analyst consensus...

Baptista Research

Edwards Lifesciences Corporation: Initiation of Coverage – Recent Approvals & Other Drivers

This is our first report on Edwards Lifesciences, a market leading manufacturer of heart valve systems and repair products. The last quarter was...

Baptista Research

Pre-IPO OrbusNeich Medical Group: Large Global Exposure Protects from Negative Price Effect in China

OrbusNeich is expected to price its IPO on Dec 16 and debut on HK market before Christmas. The company intends to use IPO proceeds to develop and...

Tina Banerjee

Shockwave Medical Inc (SWAV US): An Emerging High-Quality Cardiovascular Devices Idea

Shockwave is seeing increasing adoption of its differentiated IVL systems for the treatment of calcified cardiovascular disease. Indication and...

Tina Banerjee

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

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