GALN VX
Galenica AG
Healthcare
01/27/2015
Presented
| Date | 01/23/2015 |
| Price | CHF716.00 |
| Market Cap | $4.64B |
| Ent Value | $5.33B |
| P/E Ratio | 17.67x |
| Book Value | CHF268.53 |
| Div Yield | 1.9% |
| Shares O/S | 6.48M |
| Ave Daily Vol | 30,000 |
| Short Int | N/A |
Current
| Price | CHF1,185.00 |
| Market Cap | $79.81B |
| Galenica Ltd. develops, manufactures, and markets pharmaceutical products in Switzerland and internationally. Its Pharma segment offers iron replacement products, including Ferinject/Injectafer, Venofer, and Maltofer; immuno-stimulant products, such as Broncho-Vaxom and Uro-Vaxom; infectious diseases/OTX products, over-the-counter products, and herbal remedies; and synthetic and biotech drugs for use in immunology and the treatment of infectious diseases. This segment also provides products for patients suffering from chronic kidney disease; develops and markets CellCept for various applications involving autoimmune diseases; and markets products manufactured by third parties. The company’s Logistics segment offers pre-wholesale logistics services, including storage and distribution of products, and debt collection services to pharmaceutical and healthcare companies; supplies healthcare products to pharmacies, physicians, drug stores, care homes, and hospitals; and handles and coordinates the purchase, sale, warehousing, and distribution of products for third parties. Its Retail segment operates 483 pharmacies, including 312 own pharmacies and 171 partner pharmacies under the Amavita and Sun Store brands in Switzerland. This segment also operates a chain of 55 own pharmacies in partnership under the Coop Vitality brand; MediService specialty pharmacy that offers medication for the treatment of patients in their own homes; and 160 Winconcept partner pharmacies. The company’s HealthCare Information segment provides master data systems for the healthcare market; and publishes printed and electronic technical information on pharmaceutical products. This segment also maintains databases; offers management solutions under the Triamun brand name; TriaPharm total management software solution for pharmacies; TriaMed software for physicians; and TriaOne non-sector specific ERP solution for retail. Galenica Ltd. was founded in 1927 and is headquartered in Bern, Switzerland. |
Publicly traded companies mentioned herein: AMAG Pharmaceuticals, Inc. (AMAG), Fresenius Medical Care AG & Co KGaA (FMS), Galenica AG (GALN VX), Roche Holding AG (ROG VX), Teva Pharmaceutical Industries Limited (TEVA)
Highlights
Over the past year, shares of Galenica AG (GALN) have declined from over 900 CHF to just over 700. The presenter is short the stock and sees the potential for further declines (perhaps to the 300-400 CHF range) if his assessment of the headwinds the company faces, namely the loss of the payments GALN receives from Fresenius and declining CellCept royalties, proves to be accurate. “There is downside everywhere in the model,” and he outlined the basis for his bearish position as follows:
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