Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cochlear-ltd" target="_blank" data-smartkarma-citation="entities:918:1" rel="noopener">Cochlear Ltd (COH AU)</a> shares rallied 30%+ over the last six months. Shares are trading at NTM P/E of 51.3x, versus other Australia-listed medical devices companies’ P/E of 23–32x.</li>
<li>The underlying business strength depicted by strong financial performance and guidance raise, and superior product offerings justify the pricey valuation.</li>
<li>Cochlear lifted FY24 net profit guidance to A$385–400M (+26–31% YoY) from A$355–375M. The company expects FY24 cochlear implant volume growth of 10–15% YoY.</li>
</ul>



Cochlear Ltd (COH AU) shares rallied 30%+ over the last six months. Shares are trading at NTM P/E of 51.3x, versus other Australia-listed medical devices companies’ P/E of 23–32x.
The underlying business strength depicted by strong financial performance and guidance raise, and superior product offerings justify the pricey valuation.
Cochlear lifted FY24 net profit guidance to A$385–400M (+26–31% YoY) from A$355–375M. The company expects FY24 cochlear implant volume growth of 10–15% YoY.


Cochlear Ltd (COH AU): Underlying Business Strength Justifies Superior Valuation

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.

<ul><li>This is our first report on Moderna, Inc., a renowned biotechnology company utilizing mRNA technology in the development of therapeutics and vaccines.</li><li>The company entered 2024 optimistic despite challenging 2023 results.</li><li>The company's revenue for 2023 stood at $6.1 billion, with a net loss of $4.7 billion.</li></ul>

This is our first report on Moderna, Inc., a renowned biotechnology company utilizing mRNA technology in the development of therapeutics and vaccines.The company entered 2024 optimistic despite challenging 2023 results.The company's revenue for 2023 stood at $6.1 billion, with a net loss of $4.7 billion.

Moderna Inc: Initiation Of Coverage - Product Pipeline

Thematic (Sector/Industry)

<ul>
<li>A new COVID variant JN.1 is spreading fast. WHO has classified JN.1 as “variant of interest” due to its “rapidly increasing spread.” Thus far, JN.1 has not caused severe infection.</li>
<li>Symptoms of JN.1 may not be as mild as Omicron variants. If JN.1 becomes deadlier and more infectious, diagnostics and vaccine players are going to be benefitted primarily.</li>
<li>In this insight we have discussed two Asian vaccine companies and one diagnostic company, which should be kept in the watchlist.</li>
</ul>


A new COVID variant JN.1 is spreading fast. WHO has classified JN.1 as “variant of interest” due to its “rapidly increasing spread.” Thus far, JN.1 has not caused severe infection.
Symptoms of JN.1 may not be as mild as Omicron variants. If JN.1 becomes deadlier and more infectious, diagnostics and vaccine players are going to be benefitted primarily.
In this insight we have discussed two Asian vaccine companies and one diagnostic company, which should be kept in the watchlist.


New COVID Variant Is Emerging; Testing and Vaccine Euphoria May Be Back; Keep Your Watchlist Ready

<ul>
<li>In 1H23, biologics division of <a href="https://www.smartkarma.com/entities/lonza-group-ag-d59a4527-e054-4770-89f0-a1dd71a12aa5" target="_blank" data-smartkarma-citation="entities:27917:1" rel="noopener">Lonza Group (LONN SW)</a> reported revenue decline of 1% YoY to CHF1.6B, due to low mRNA sales dragged by lower demand for the COVID-19 vaccines.</li>
<li>Reflecting slower-than-expected growth in early-stage services and continued weak demand for nutraceutical capsules, Lonza has reduced 2023 sales growth expectation and cut core EBITDA margin guidance to 28–29%.   </li>
<li>Growth in 2024 will be impacted by high base, the subsequent mRNA revenue loss, and trial setback faced by small biotech client. Lonza anticipates 2024 margin in the high twenties.</li>
</ul>


In 1H23, biologics division of Lonza Group (LONN SW) reported revenue decline of 1% YoY to CHF1.6B, due to low mRNA sales dragged by lower demand for the COVID-19 vaccines.
Reflecting slower-than-expected growth in early-stage services and continued weak demand for nutraceutical capsules, Lonza has reduced 2023 sales growth expectation and cut core EBITDA margin guidance to 28–29%.   
Growth in 2024 will be impacted by high base, the subsequent mRNA revenue loss, and trial setback faced by small biotech client. Lonza anticipates 2024 margin in the high twenties.


Lonza Group (LONN SW): Customer Driven Events Are Impacting Near-Term Performance

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Shenzhen Kangtai Biological Pr / Equity Bottom-Up

<ul>
<li>The National Health Commission and The People's Daily made "mild" statements about anti-corruption in China healthcare, bringing investors “new hope”. However, there could be a “misconception” regarding the anti-corruption movement. </li>
<li>There was news that some type 2 vaccines could be converted to type 1 vaccines. Even though some vaccines will be affected by this policy, others will not.</li>
<li>Kangtai’s had strong 23H1 net profit, but it has little investment value due to lack of core R&amp;D strength.Kangtai's vaccines face the risk of being included in national immunization program.</li>
</ul>


The National Health Commission and The People's Daily made "mild" statements about anti-corruption in China healthcare, bringing investors “new hope”. However, there could be a “misconception” regarding the anti-corruption movement. 
There was news that some type 2 vaccines could be converted to type 1 vaccines. Even though some vaccines will be affected by this policy, others will not.
Kangtai’s had strong 23H1 net profit, but it has little investment value due to lack of core R&amp;D strength.Kangtai's vaccines face the risk of being included in national immunization program.


China Healthcare Weekly (Sep.15) - Anti-Corruption Turnaround? Vaccine Policy Changes, Kangtai Bio

United States

Moderna, Inc. operates as a biotechnology company. The Company focuses on the discovery and development of messenger RNA therapeutics and vaccines. Moderna develops mRNA medicines for infectious, immuno-oncology, and cardiovascular diseases.

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Moderna (MRNA US)

Cochlear Ltd (COH AU): Underlying Business Strength Justifies Superior Valuation

Cochlear lifted FY24 net profit guidance 8% to A$385–400M (+26–31% YoY). The company expects FY24 cochlear implant volume growth of 10–15% YoY from...

Tina Banerjee

Moderna Inc: Initiation Of Coverage - Product Pipeline

This is our first report on Moderna, Inc., a renowned biotechnology company utilizing mRNA technology in the development of therapeutics and...

Baptista Research

New COVID Variant Is Emerging; Testing and Vaccine Euphoria May Be Back; Keep Your Watchlist Ready

A new COVID variant, JN.1, is spreading rapidly and has been classified as a "variant of interest" by WHO. If it becomes deadlier, vaccine and...

Tina Banerjee

Lonza Group (LONN SW): Customer Driven Events Are Impacting Near-Term Performance

Lonza's biologics division saw 1% decline in revenue in 1H23 due to lower demand for COVID-19 vaccines, leading to reduced sales growth...

Tina Banerjee

China Healthcare Weekly (Sep.15) - Anti-Corruption Turnaround? Vaccine Policy Changes, Kangtai Bio

Investors have renewed hope in China healthcare due to potential turnaround in anti-corruption. China may change vaccine policy, which will affect...

Xinyao (Criss) Wang

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52-week Range

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Cochlear Ltd (COH AU): Underlying Business Strength Justifies Superior Valuation

Cochlear lifted FY24 net profit guidance 8% to A$385–400M (+26–31% YoY). The company expects FY24 cochlear implant volume growth of 10–15% YoY from...

Tina Banerjee

Moderna Inc: Initiation Of Coverage - Product Pipeline

This is our first report on Moderna, Inc., a renowned biotechnology company utilizing mRNA technology in the development of therapeutics and...

Baptista Research

New COVID Variant Is Emerging; Testing and Vaccine Euphoria May Be Back; Keep Your Watchlist Ready

​A new COVID variant, JN.1, is spreading rapidly and has been classified as a "variant of interest" by WHO. If it becomes deadlier, vaccine and...

Tina Banerjee

Lonza Group (LONN SW): Customer Driven Events Are Impacting Near-Term Performance

​Lonza's biologics division saw 1% decline in revenue in 1H23 due to lower demand for COVID-19 vaccines, leading to reduced sales growth...

Tina Banerjee

China Healthcare Weekly (Sep.15) - Anti-Corruption Turnaround? Vaccine Policy Changes, Kangtai Bio

Investors have renewed hope in China healthcare due to potential turnaround in anti-corruption. China may change vaccine policy, which will affect...

Xinyao (Criss) Wang

A new COVID variant, JN.1, is spreading rapidly and has been classified as a "variant of interest" by WHO. If it becomes deadlier, vaccine and...

Lonza's biologics division saw 1% decline in revenue in 1H23 due to lower demand for COVID-19 vaccines, leading to reduced sales growth...