Healthcare 845

The Healthcare sector is showing strength, gaining an average 20.6% this year.

*Amneal Pharmaceuticals, Inc. (AMRX)
Amneal Pharmaceuticals Inc. is gaining traction after the company announced positive top-line results from a pivotal Phase 3 Parkinson’s disease trial.

According to a company press release, “clinical trial that evaluated the novel formulation, IPX203, in patients with Parkinson’s disease (PD) who have motor fluctuations. The trial met its primary endpoint, demonstrating superior ‘Good On’ time from baseline in hours per day at the end of the 13-week double-blind treatment period with IPX-203 CD/LD extended-release capsules compared with immediate-release CD/LD. Based on these topline results plus other supportive data, Amneal plans to submit a New Drug Application (NDA) for IPX-203 with the U.S. Food and Drug Administration (FDA) in mid-2022.”

Analysts at RBC Capital also raised their price target on AMRX to $6, with a sector perform rating. If the company can continue to produce solid numbers, it could double, if not triple with a good deal of patience. Buy and hold, long-term.
Ian Cooper, The Cheap Investor,, September 2021

*Intuitive Surgical, Inc. (ISRG)
Intuitive Surgical’s stock price topped $1000 recently, so it was clearly a split candidate. Talk of a split has been in the air for months. I was only mildly interested because 1) I don’t usually take a look at a stock until after a split is actually announced; and 2), this stock’s fundamentals are way off from what I would consider a good 2 for 1 Index candidate.

With a PE of 76, no dividend, and being a “popular” name, ISRG definitely does not fit the ideal 2 for 1 Index profile. But then, last week, there was a 3 for 1 split announcement and, here’s the thing. This is an incredibly successful company. It has no debt on the books, it is twice as profitable as the average medical device company, with an operating margin of 31%, and it has been growing sales at almost 13%/year for the last five years.
Neil Macneale, 2 for 1 Stock Split Newsletter,, 408-210-6881, August 13, 2021

*Globus Medical, Inc. (GMED)
Better-than-expected robotic sales, strong uptake from Globus Medical’s new products like the 3D printed spacers, and continued momentum in trauma bode well for the rest of 2021.

We continue to view the underlying opportunity in spine positively and see the next 18 months as having the potential to be a breakthrough period for GMED as it emerges into a “diversified ortho” player and drives meaningful growth in trauma, total joints, and capex (robots/imaging), on top of the core spine business.

GMED posted impressive Q2/21 results highlighted by +64% growth Y/Y in US spine and +281% growth in enabling technologies. Q2 revenues came in at a blistering $251.0M, +68.6% Y/Y, vs CG/consensus estimates of $227.6M/$225.5M.

At this point, it’s obvious that GMED is taking material share in the U.S. market and given management’s continued commentary regarding strong competitive rep hiring in 2020 and through the 1H/21, we’re inclined to believe this is only the beginning.

GMED raised full-year 2021 guidance for revenue to $925M-$950M (vs $880-$925M previously). We view both revenue and EPS guidance as conservative and not reflective of the fundamental strength in the business.

We raise our price target to $90 from $80, based on an average of a P/E, EV/EBITDA, and EV/Sales multiple analysis and our updated 2022 estimates. Our P/E analysis applies a 30.7x multiple to our 2022E EPS of $2.28.
Kyle Rose, Canaccord Genuity Research,, August 5, 2021


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