Sirtex goes from strength to strength
Sirtex Medical (ASX: SRX) has just reported its FY16 results, and they were pleasing on every metric. We recently commented on the firm’s sales growth which the market took the news badly and subsequently the price of the firm’s shares fell.
In our last piece on Sirtex Medical, we noted issues in the firm’s dosage sales growth in the EMEA & APAC regions. This was seen as bad news and subsequently the price of the shares fell from over $30 to below $26 in the following weeks.
Such occasions are a gift to the value investor and, after some due diligence, we acquired a stake in the firm (I’ll add in here, with the share price hovering below $35 the opportunity to buy with a cushion of safety – we think – is largely gone).
The firm reported its FY16 results yesterday (having pre-announced dosage sales growth back in July). We’d like to highlight the following:
- Revenue growth of 32 per cent (35 per cent growth from the Americas).
- Dosage sales growth of 16.4 per cent (19.0 per cent from the Americas).
- NPAT up 33 per cent.
- Trials recruitment is largely completed.
- Results of the SARAH trial have been delayed, reportedly due to patients living longer than the researchers had expected (this may possibly be a good sign but we’ll reserve judgement until the results are published in the first half of 2017).
In the coming weeks, we’ll publish a piece which provides a deep dive into the prospects for Sirtex.
Montgomery owns shares in Sirtex.
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