Scott Power

Senior Analyst at Morgans covering healthcare, life science, telecommunications, technology and media. I've spent the last twenty years investing in and researching emerging companies and have developed a wide network of contacts across these...

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Four emerging healthcare stories with near-term catalysts

Scott Power

I thought I'd look at a couple of the emerging healthcare names with near-term catalysts, specifically some quarterly sales that are going to be reported in January. They're not formally covered, but Derek Jellinek and I have had the opportunity to meet with management over the last month, and we've... Show More

ASX:AXP ASX:OSP ASX:ELX ASX:VTI

Healthcare sector update

Scott Power

The healthcare sector has been very strong this year, and here we touch on eight players within it. There have also been a couple of laggards in that space too, and they are the IVF players. So we've been sitting with neutral recommendations on the space the last two years.... Show More

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Healthcare Update: Mayne Pharma & IDT

Scott Power

Mayne Pharma has come under a fair bit of selling pressure following further investigations into price fixing for some of their generic drugs. The company reported that impact on their earnings would be minimal and the share price recovered a little bit on the back of that, but at one... Show More

ASX:SRX ASX:NAN ASX:MYX ASX:IDT

Sirtex: upgraded from ‘Reduce’ to ‘Hold’

Scott Power

Sirtex is still trading 33% below its level prior to last week’s trading update. Issues such as competition, reimbursement, complex work-up, short sales cycle, and the first admission that SIRFLOX survival data is needed to drive front-line use were cited as causes for the weakness. While these issues are nothing... Show More

morgans sirtex ASX:SRX

Healthscope: Near-term uncertain, but drivers intact

Scott Power

Increased 1Q variability in Hospital volumes/case mix has seen HSO warn of soft divisional revenue growth and flat divisional growth if the trend continues through FY17. Negative publicity around affordability and consumer confidence were cited as the main cause of weakness, with October looking likely to improve and no fundamental... Show More

ASX:HSO

Agreement with Pathologists provides greater certainty for Sonic and Primary

Scott Power

Over the week-end the Prime Minister commented that an agreement had been reached with the pathologists (and Pathology Australia). The Federal Government will keep its proposed cuts to bulk-billing incentives and the pathologist will wear the extra costs, so as to maintain the existing bulk billing rates. In return, the... Show More

ASX:PRY ASX:SHL

Healthcare – Navigating a currency headwind

Scott Power

The Australian dollar (AUD) has rallied c7% against the US dollar since the start of 2016 on a combination of uncertainty about global growth and US Federal Reserve’s about-face on targeted interest rate rises amid lower growth and inflation, helping to support the currencies of commodity-exporting nations such as Australia.... Show More

Impressive results from Blackmores

Scott Power

Blackmores results are in, and it’s a huge jump in profit, up 160% to $48m. Despite the strong result, the shares were sold off slightly as the market was expecting the profit surge. The result couldn’t be faulted, with sales up 65%. Sales directly to China have been strong, now... Show More

reporting season ASX:BKL

Sonic Healthcare

Scott Power

Sonic 1H16 results were in line with our expectations, with solid underlying earnings growth driven by ex-Australia ops, somewhat overcoming well-flagged government policies that negatively impacted domestic businesses. Importantly, strong organic laboratory growth, profit enhancements across the domestic front, and gains from recent acquisitions and FX tailwinds, reiterate the outlook... Show More

sonic healthcare reporting season ASX:SHL

Healthcare sector overview

Scott Power

The healthcare sector has been one of the most consistent performers over the past 10 years, underperforming the ASX200 only 2 times over the past decade. However, increased regulatory scrutiny and soft industry data have taken some gloss off the domestic service providers (SHL, PRY, RHC, HSO, CAJ, IDX), with... Show More

ASX:PRY ASX:SRX ASX:SHL ASX:HSO ASX:CAJ ASX:IDX

Blackmores - Chinese regulatory concerns and high PE stock de-rating

Scott Power

Blackmores share price has fallen over 10% which follows on the weakness from last week (down over 20%). We have made several enquiries to our industry sources and although we can't find anything concrete - anecdotal evidence suggests there is some concern over the regulatory situation in China (it's more... Show More

blackmores ASX:BKL

CSL annual R&D day overview

Scott Power

CSL hosted its annual R&D day yesterday. Overall, we came away with a better appreciation of the company’s protein therapeutics technical platform, underpinned by a core focus on plasma fractionation and recombinant technology across four key verticals (ie Immunoglobulins (43% of total sales), Specially Products (17% of total sales), Haemophilia... Show More

healthcare ASX:CSL

Top five emerging healthcare companies

Scott Power

“The Morgans Healthcare team has today released its top 5 emerging healthcare names with some near term milestones. Companies that we’re looking at that we think over the next 1-2 months will produce some catalysts that if positive will drive the share prices.” For the list of 5 stocks and... Show More

healthcare biotechnology ASX:AHZ ASX:RNO ASX:IPD ASX:NEU ASX:VLA

Resmed 1QFY15 earnings summary

Scott Power

Resmed 1QFY15 underlying earnings were in line with expectations, with another quarter of double-digit sales growth, underpinned by strong US flow generator uptake and continued strength in masks beating market growth rates. While ROW sales continue to be impacted by disappointing SERVE-HF trial results, the impact remains ring-fenced and failed... Show More

ASX:RMD

Lowering earnings expectations for Ansell

Scott Power

Weaker than expected 3Q earnings from a handful of US industrial companies and softening economic data on the back of falling commodity prices and stagnant global demand, suggest the industrial economy is losing momentum. ANN has flagged lower than expected Q1 sales, a US economy not traveling as well as... Show More

ansell ASX:ANN

Emerging Healthcare: Key inflection points in an uncertain world

Scott Power

Investing in small/micro-cap healthcare is challenging due to a lengthy and binary driven product cycle, which is punctuated with bouts of excessive share volatility. While a pure momentum strategy that rides on investor enthusiasm, knowledge of the timing and share impact of different catalysts (eg regulatory events, clinical trial readouts,... Show More

healthcare

Sleep well at night - overviewing the large Healthcare stocks

Scott Power

FY15 earnings season was mixed and some outlook statements were soft, but the sector still managed to outperform and fundamentals remain intact. We see no point in worrying about the looming US Federal Reserve decision on rates, slowing global growth, falling commodity prices and an uncertain domestic macro outlook, as... Show More

ASX:CSL ASX:SHL ASX:HSO ASX:REG

Healthscope positioned for continued momentum

Scott Power

TPG and The Carlyle Group have sold A$810m, or 53% of their A$1.8bn stake in HSO (will retain a 17.8% holding). Our Investment view is the company has a solid track record of strong earnings growth of 13% over the last 4 years, along with stable, high CF generation and... Show More

healthscope ASX:HSO

Blackmores: Growth to continue

Scott Power

Blackmores produced an exceptional FY15 result, beating our and consensus forecasts. Management commentary, although vague in terms of details, implies growth will continue in FY16. We have made upgrades to our forecasts and valuation, but are still struggling from a fundamental view with the current share price. Hold recommendation maintained.... Show More

ASX:BKL

Nanosonics: A clean story

Scott Power

Although the FY15 results were slightly behind our forecasts, the result had been well flagged to the market. With a direct sales force in the US now fully established we expect to see a substantially stronger FY16. A growing global need/requirement for high level disinfection will support long term growth.... Show More

nanosonics ASX:NAN

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