First Read Galenica: Takeaway from a roadshow with CEO & CFO

研报英文原文证据摘录

First Read Galenica: Takeaway from a roadshow with CEO & CFO

EPS (UBS, diluted) (CHF)

into areas which were less affected. Moreover, we see the company’s diagnostic UBS Cons.

operations to be highly automated, hence allowing for more volume throughput, if 12/26E 3.93 3.94

needed. This available capacity should be also helpful, in case inorganic growth 12/27E 4.16 4.20

opportunities would become available in the industry, in our view. 12/28E 4.46 4.47

Additional snippets Sebastian Vogel, CFA

Analyst

(1) We expect Galenica to plan, in the meantime, for an earlier liberalization of the local sebastian.vogel@ubs.com

regulation of OTC drug delivery regime and hence anticipate the company to focus now +41-44 239 90 45

on 2029. However, we also anticipate that the company sees itself prepared for such a

Joern Iffert, CFA

scenario though its further developed omnichannel approach; (2) We anticipate that the

company plans for an overall capex of around CHF80-90m; (3) For its Products & Brands joern.iffert@ubs.com

subsegment, we anticipate that destocking in the international channel should come to +41-44-239 88 00

an end by 2026. Moreover, we see its Switzerland-focussed portfolio to have been

negatively impacted the flu exposed product offering. However, we also see the overall

market growth to be increasingly rather undynamic in recent years.

DCF-based PT of CHF85/conclusion

We derive our PT of CHF85 using a DCF valuation approach using a terminal sales

growth rate/WACC of 2.5%/6.4%. In our view, the roadshow underscored Galenica's

well diversified business setup and the large number of individual demand drivers for its

respective subsegments. However, this setup also somewhat limits the individual effects

of some growth oriented operational and strategic initiatives.