VIFN SW

Vifor Pharma AG

Healthcare


Presented:08/13/2020
Price:CHF132.35
Cap:$8.92B
Current Price:CHF166.15
Cap:$11.20B

Presented

Date08/13/2020
PriceCHF132.35
Market Cap$8.92B
Ent Value$10.40B
P/E Ratio53.07x
Book ValueCHF50.75
Div Yield1.51%
Shares O/S64.89M
Ave Daily Vol229,131
Short IntN/A

Current

PriceCHF166.15
Market Cap$11.20B
Vifor Pharma AG is a pharmaceutical company, which engages in the research, development, production, and marketing of therapeutic products. It offers products for iron deficiency, nephrology, and cardio-renal therapies. It operates through the following geographical segments: Switzerland, Europe, USA, Rest of World, and Group. The company was founded in 1927 and is headquartered in St. Gallen, Switzerland.

Publicly traded companies mentioned herein: AstraZeneca PLC (AZN), Vifor Pharma AG (VIFN SW) 

Highlights

The presenter is short shares Vifor Pharma (VIFN), a Swiss-based $8.5B global specialty pharmaceuticals company. Over the near to medium term, he expects a favorable risk/reward setup for bears due to these three catalysts: flat to declining sales of its key products, flat EPS growth for the next 3 years, and competition on its iron products from AZN’s roxadustat. The stock is currently trading at 25X PE or 14X EV/EBITDA, multiples which reflect high growth expectations. However, the presenter notes that this growth expectation may be misguided and is skewed to one product (Veltassa) which has missed on consensus growth estimates. As a result, he expects earnings estimates to be adjusted lower, and multiple contraction to follow in the relatively short term. 

A long standing global leader in the iron deficiency and iron deficiency anaemia market, VIFN has since expanded into nephrology and cardio-renal therapies. Its nephrology business unit has been a strong grower for the last few years.

Since the rest of the company's products (Venofer and Maltofer IV iron replacement) are flat to declining, its nephrology business has been the primary growth driver. Nephrology has been a fast grower, with EPS growth at 18% per annum and top line growth estimates of 10% per year for 2020-2023.

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