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Showing posts with label NASDAQ. Show all posts
Showing posts with label NASDAQ. Show all posts

Wednesday, September 25, 2024

Why we like and own shares of, Royalty Pharma plc (NASDAQ: RPRX)

                                     


Investment Analysis Report: Royalty Pharma plc (NASDAQ: RPRX)

Date: September 25, 2024


Executive Summary

Royalty Pharma plc (RPRX) stands out in the pharmaceutical sector with its unique business model of acquiring pharmaceutical royalties. This approach provides diversified exposure to a broad range of therapies and mitigates risks associated with drug development. Given the company's strong financial performance up to October 2023, solid portfolio of royalty interests, and the continuous growth in the pharmaceutical industry, RPRX presents a compelling investment opportunity for investors seeking exposure to the healthcare sector.

Company Overview

Royalty Pharma plc is a leading buyer of biopharmaceutical royalties and a funder of innovation across the healthcare industry. The company collaborates with innovators from academic institutions, research hospitals, and biotechnology and pharmaceutical companies. By acquiring existing royalties and funding late-stage clinical trials and new product launches, Royalty Pharma provides capital that supports innovation in the biopharmaceutical industry.

Unique Business Model

  • Diversification of Revenue Streams: Royalty Pharma's income is derived from a diversified portfolio of royalties on over 45 marketed therapies and four development-stage product candidates. This diversification reduces reliance on any single product or partner.

  • Reduced Operational Risks: Unlike traditional pharmaceutical companies, Royalty Pharma does not engage in drug development, manufacturing, or commercialization, thereby avoiding associated operational risks and costs.

  • Strategic Partnerships: The company has established relationships with leading pharmaceutical and biotechnology companies, enhancing its ability to acquire high-quality royalty streams.

Financial Performance (Up to October 2023)

  • Revenue Growth: Royalty Pharma demonstrated consistent revenue growth, driven by strong performance of key products in its royalty portfolio.

  • Strong Cash Flow: The company's business model generates robust cash flows, supporting dividend payments and reinvestment in additional royalty acquisitions.

  • Healthy Balance Sheet: With prudent financial management, Royalty Pharma maintained a solid balance sheet, providing flexibility for future investments and acquisitions.

Key Royalty Assets

  • Blockbuster Drugs: The portfolio includes royalties on high-performing drugs such as Imbruvica, Tysabri, and Trulicity, which have shown strong sales and growth trajectories.

  • Emerging Therapies: Investments in royalties of development-stage products position the company to benefit from potential future blockbusters.

Growth Prospects

  • Pipeline Expansion: Ongoing investments in new royalties and partnerships are expected to enhance future revenue streams.

  • Industry Innovation: The continuous advancement in biotechnology and pharmaceuticals presents opportunities for Royalty Pharma to acquire royalties on innovative therapies.

  • Strategic Acquisitions: The company’s expertise and financial strength position it well to capitalize on acquisition opportunities in the royalty market.


Industry Outlook

  • Growing Healthcare Demand: An aging global population and increased prevalence of chronic diseases drive demand for innovative therapies.

  • Biopharmaceutical Innovation: Significant investments in R&D across the industry are leading to new drug discoveries, expanding the potential for royalty acquisitions.

  • Favorable Regulatory Environment: Regulatory support for accelerated drug approvals can shorten time to market for new therapies, benefiting royalty holders.

  • Royalty Pharma is dominant and very successful. Over the past 4 years,  the company has invested $13 billion acquiring royalties on 34 unique therapies, half of which are either currently or will be blockbusters.

    The royalties generate very high profit margins. Last year, for example, they produced a margin of 89%. On an earnings-per-share basis, the company posted net income of $1.88 billion last year. The stock is also yielding 2.8%.

    Going forward sales and profits should continue to grow as the development-stage drugs in its portfolio gain approval. Currently, the company holds a total of 49 royalties, 35 of which are for approved drugs and 14 for development-stage drugs.

Risk Factors

  • Dependence on Product Success: Royalty revenues are tied to the performance of underlying products; any decline in sales due to competition or patent expirations can impact income.

  • Regulatory Changes: Changes in healthcare policies, drug pricing regulations, or patent laws could affect royalty revenues.

  • Market Competition: Increased competition in acquiring royalty interests may lead to higher acquisition costs and affect future returns.

Conclusion

Royalty Pharma plc offers a unique investment proposition with its diversified and growing portfolio of pharmaceutical royalties. The company's strong financial position, combined with industry growth drivers, supports the potential for continued revenue growth and shareholder value creation. Investors seeking exposure to the healthcare sector with a focus on stable income and growth may find RPRX an attractive addition to their portfolios.


Disclaimer: This report is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consider their financial situation and investment objectives before making investment decisions.

Medtronic plc stands as a formidable entity in the medical technology industry, underpinned by a rich history of innovation, strategic partnerships, and solid financial performance

Wednesday, July 31, 2024

While Palantir stock is on our watch list, with a 200+ current multiple, we're in no hurry to rush in before their August 5th report!

 


Palantir's stock is trading at a high multiple, over 200 times its earnings, primarily due to several key factors driving investor optimism and market dynamics.

  1. AI and Technology Hype: The ongoing excitement around artificial intelligence and its applications has significantly boosted Palantir's valuation. The company has been at the forefront of integrating AI into its platforms, which has captivated investors looking to capitalize on the AI boom​ (Nasdaq)​.

  2. Strong Financial Performance: Palantir has shown consistent financial growth, particularly in its government and commercial segments. In recent quarters, the company has reported impressive revenue increases and profitability. For instance, its Q1 2024 revenue rose 21% year-over-year, with substantial growth in its U.S. commercial business​ (Nasdaq)​​ (MarketBeat)​.

  3. Strategic Contracts and Partnerships: Palantir's ability to secure significant contracts, such as a $178.4 million deal with the U.S. Army, underscores its robust position in the defense and intelligence sectors. Such contracts not only provide immediate revenue but also enhance the company's long-term growth prospects​ (Nasdaq)​.

  4. Market Sentiment and Speculation: The broader market sentiment towards tech and AI stocks has been highly favorable, often leading to elevated valuations. This speculative enthusiasm has contributed to Palantir's high trading multiple, despite some analysts expressing concerns over its sustainability and long-term valuation​ (MarketBeat)​.

While these factors have driven the stock's high valuation, it's important to note that such elevated multiples can also introduce higher volatility and risk, especially if the company's growth does not meet market expectations in the future.

Palantir's upcoming Q2 2024 earnings report, scheduled for August 5th, is highly anticipated by investors and analysts alike. Expectations are centered around several key areas:

  1. Earnings and Revenue: Analysts predict an average earnings per share (EPS) of $0.04 and revenue of approximately $652.47 million for the quarter. For the full fiscal year 2024, the projected EPS is $0.16, indicating a significant year-over-year growth​ (MarketBeat)​​ (TradingView)​.

  2. AI and Commercial Growth: Palantir's AI initiatives, particularly its Artificial Intelligence Platform (AIP), have driven substantial growth in the commercial sector. The company's U.S. commercial revenue surged 40% year-over-year in Q1 2024, and its customer base increased by 69%​ (InvestorPlace)​​ (Finbold)​. The continued adoption and success of these AI tools will be closely watched.

  3. Government Contracts: Palantir's robust portfolio of government contracts remains a strong revenue driver. Recent notable contracts include a $178 million project with the U.S. Army and a potential $480 million contract with the Department of Defense's Chief Digital and Artificial Intelligence Office (CDAO)​ (Finbold)​​ (InvestorPlace)​.

  4. Market Sentiment and Stock Performance: Palantir's stock has risen significantly in 2024, reflecting strong investor confidence in its growth potential. However, concerns over its high valuation and limited earnings visibility persist. Analysts hold mixed views, with some suggesting caution due to the high multiple at which the stock trades​ (TradingView)​​ (MarketBeat)​.

The Q2 earnings report will be crucial in determining Palantir's near-term trajectory

Investors are looking for signs of continued revenue growth, successful AI deployment, and strong performance in both government and commercial sectors. Positive results could propel the stock higher, while any shortfalls might lead to a decline, given the current lofty valuation.

Why we recently bought shares of Global Foundries Ltd!

Wednesday, July 17, 2024

From promising cancer treatments to new and improved imaging, ultrasould and diagnosis, Ai is enhancing these microcaps!

 Promising Microcap stocks in Healthcare, Quantum computing, Ai, Lidar, Nanotech, imaging & more!



Wednesday, July 10, 2024

Two years ago! That was the last time you could buy shares of Recursion Pharmaceuticals (NASDAQ: RXRX) at today's price! Here's why!

 


Recursion Pharmaceuticals (NASDAQ: RXRX) 

recently raised approximately $200 million through a public offering of 30,769,230 shares of its Class A common stock at a price of $6.50 per share.

The lead book-running managers for this offering were Goldman Sachs & Co. LLC and J.P. Morgan, with Allen & Company LLC also acting as a book-running manager​ (Recursion Pharmaceuticals, Inc.)​​ (Market Wire News)​.

The specific buyers of these shares include institutional investors, as is typical in such offerings.

 Recursion's institutional ownership is notably high, with major investors including firms like Kinnevik AB, which holds a significant portion of shares. 

Other institutional investors involved over the last year include DNB Asset Management AS, Teachers Retirement System of the State of Kentucky, and California State Teachers Retirement System​ (Stock Market News Live | Stock Titan)​​ (MarketBeat)​.

These funds are expected to support Recursion's ongoing research and development efforts, leveraging their platform for drug discovery. This move is a strategic effort to secure additional capital necessary for advancing their clinical programs and expanding their operational capabilities​ (Recursion Pharmaceuticals, Inc.)​​ (Market Wire News)​​ (Stock Market News Live | Stock Titan)​.

also...

Nvidia owns shares in Recursion Pharmaceuticals (RXRX)

Nvidia made a significant investment of $50 million in Recursion in July 2023, purchasing shares through a private investment in public equity (PIPE). 

As part of this investment, Nvidia acquired approximately 7.7 million shares of Recursion, which at the time was valued at $75.9 million​ (MarketBeat)​​ (Recursion Pharmaceuticals, Inc.)​​ (Ground News)​. 

This investment underscores Nvidia's confidence in Recursion's AI-driven drug discovery platform and represents a strategic partnership to leverage Nvidia's computing capabilities in the biotech field.

Financials

Recursion Pharmaceuticals is currently in a strong financial position with $296.3 million in cash and cash equivalents as of March 31, 2024 and with this recent infusion of cash, they have basically doubled their financial position.

 The company reported a revenue of $13.8 million for Q1 2024, primarily due to its partnership with Roche. However, they also posted a net loss of $91.4 million for the quarter due to significant investments in research and development and general administrative expenses. 

Technologically

Recursion continues to enhance its platform, focusing on advanced computational biology, machine learning, and transcriptomics to drive drug discovery​ (Recursion Pharmaceuticals, Inc.)​.

Discl: Long $RXRX and accumulating!


In Bio Science, there is a race for better Gene sequencing and genomics technology!




Monday, August 29, 2011

Ballard Power to lease space to Daimler for Fuel Cell vehicle development!

Ballard Completes Optimization of Production Space and Commences Sub-Lease with Daimler
 Aug , 2011 by CNW Group
 Ballard Power Systems (TSX: BLD) (NASDAQ: BLDP) confirmed today that it has completed consolidation and optimization of product development and production space in its specialized fuel cell manufacturing facilities located in Burnaby, British Columbia. Ballard has also commenced the previously announced sub-lease of space, representing approximately 38% of the facility, to Daimler AG (Daimler) for use in manufacturing fuel cells for its fuel cell car programs.

Surplus space was created as a result of Ballard's progress over the past several years in implementing automated and continuous manufacturing processes for the Company's fuel cell products. A key driver in this context has been the introduction of continuous lamination equipment, which cuts and assembles components of Ballard's proprietary technology, resulting in a 10-fold increase in production while using about 10% of the physical floor space previously required.

Paul Cass, Ballard's Vice-President of Operations said, "We completed this work on-time, which also enabled the sub-lease of space to Daimler to proceed as scheduled. With the evolution of automated and continuous manufacturing we will be able to produce one-hundred megawatts of fuel cell product annually in this smaller footprint, seeing us through 2013 with no further investment in manufacturing capacity."
With the Daimler sub-lease, Ballard expects annual savings of approximately $1 million in real estate and related overhead costs. This lower cost manufacturing model is a further enabler on the Company's path to profitability.

Ballard will continue supplying its FCvelocity(TM )products for Daimler's fuel cell car and bus programs until the end of the current supply agreement. In addition, Ballard will continue supplying Automotive Fuel Cell Cooperation (AFCC), a private company majority-owned by Daimler, with contract manufacturing and technical engineering services.

About Ballard Power Systems Ballard Power Systems (TSX: BLD) (NASDAQ: BLDP) provides clean energy fuel cell products enabling optimized power systems for a range of applications. Products are based on proprietary esenciaTM technology, ensuring incomparable performance, durability and versatility. To learn more about Ballard, please visit www.ballard.com.

This release contains forward-looking statements, including anticipated manufacturing capacity, cost savings and operational plans, which are provided to enable external stakeholders to understand Ballard's expectationsas at the date of this release and may not be appropriate for other purposes. These forward-looking statements are based on the beliefs and assumptions of Ballard's management and reflect Ballard's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such assumptions relate to Ballard's financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand, and include matters such as generating new sales, producing, delivering and selling the expected number of units, and controlling its costs.

These statements involve risks and uncertainties that may cause Ballard's actual results to be materially different, including, without limitation, the condition of the global economy, the rate of mass adoption of its products, product development delays, changing environmental regulations, its ability to attract and retain business partners and customers, its access to funding, increased competition, its ability to protect its intellectual property, changes in its customers' requirements, foreign exchange impacts on its net monetary assets and its ability to provide the capital required for product development, operations and marketing. For a detailed discussion of these risk factors and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form.

Readers should not place undue reliance on Ballard's forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward looking statements, other than as required under applicable legislation.

Further Information Public Relations: Guy McAree, +1.604.412.7919,media@ballard.com Investor Relations: Lori Rozali, +1.604.412.3195,investors@ballard.com
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/24/c6053.html
SOURCE: Ballard Power Systems Inc.
Public Relations: Guy McAree, +1.604.412.7919,media@ballard.com Investor Relations:
Lori Rozali, +1.604.412.3195,investors@ballard.com
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