SIEN

Sientra Inc

Healthcare


Presented:10/06/2016
Price:$9.21
Cap:$0.17B
Current Price:$0.17
Cap:$0.00B

Presented

Date10/06/2016
Price$9.21
Market Cap$0.17B
Ent Value$0.03B
P/E RatioN/A
Book Value$5.47
Div Yield0%
Shares O/S18.08M
Ave Daily Vol145,303
Short Int11.58%

Current

Price$0.17
Market Cap$0.00B
Sientra, Inc. is a medical aesthetics company, which develops and commercializes plastic surgery implantable devices. Its products include breast implants, tissue expanders, and body contouring implants, facial implants and specialty products. The company's implants are available in a variety of shapes and sizes, with either a smooth or textured surface. Sientra was founded in 2006 by Hani M. Zeini and is headquartered in Santa Barbara, CA.

Publicly traded companies mentioned herein: Allergan PLC (AGN), Johnson & Johnson (JNJ), Sientra Inc (SIEN)

Highlights

Sientra (SIEN) is a manufacturer of breast implants that ran into issues with its Brazilian production facility in late 2015. This sent shares tumbling from the low-$20s to a low in the high-$2s. The stock is presently trading ~$9 and the presenter is long. SIEN’s HSC (High-Strength Cohesive) silicone gel implants may be better than the implants manufactured by its two main competitors: Johnson & Johnson and Allergan; however, SIEN is at a substantial size/ scale disadvantage and needs to reestablish itself in the market. SIEN has a new CEO - Jeffrey Nugent - and a good product, so a turnaround should be feasible (but it is not without risk). If SEIN can execute, and the presenter assumes its $70 million of net cash is sufficient to self-fund operations over the investment horizon - the stock should trade back up to at least $15/ share over the next 2-3 years. In addition, there is optionality around M&A.

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Idea Discussion

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