Allium Medical Solutions: Revenues Continue To Grow In Key Markets
Edison | Nov 24, 2016 03:29AM ET
Allium Medical’s (TA:ALMD) Q316 and 9M16 results are encouraging. Revenues in Q316 were NIS1.6m, up 46% vs Q315, while 9M16 revenues were NIS5.5m, up 54% vs 9M15. This increase has mainly been driven by Allium Stents in South Korea, which is a new and significant market for the company; and IBI Medical in Europe. These results reinforce our revenue CAGR forecast of 41% in 2015-20e. We reiterate our DCF valuation of NIS1.95-2.08/share.
Growth continues in current and new markets
Allium has announced Q3 and 9M results for 2016. Revenues increased 46% and 54% respectively vs the same periods in 2015. However, we note that on a quarter-on-quarter basis, revenues in Q3 decreased by 20% but this was mainly because sales tend to decline during the summer period. Revenue growth was generated in South Korea and existing markets, mainly Europe, Australia and South Africa, as well as its home market of Israel. As described in our initiation report, Allium has signed distribution agreements worth c NIS185m for its peripheral stents and IBI EndoFast urogynecology products. The main opportunity of c NIS132m is concentrated in China, Mexico and Russia. We believe it is important that the company continues to execute on its expansion strategy, which could generate a double-digit increase in revenues.
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Allium Medical Solutions - Revenues Continue To Grow In Key Markets
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