Craig Hallum Note
Below is from Wednesday morning 8/14
Purchased stock more aggressively yesterday andtoday $6.70-$6.50. Selling is indefatigable for now.
Craig-Hallum Morning Call:
KRMD* – CSL Behring outlined its view for FY21. CSL’s view on the plasma collection market was somewhat mixed: disruption persists, but the market is steadily recovering week on week (although still down y/y).
For FY21, CSL expects +6-10% y/y growth, vs. Street’s 20% growth. While a diversified company, the guide must include weakness within their largest brand: immunoglobulin which includes Hizentra.
Alex Nowak notes this mixed message on Hizentra (KRMD’s underlying drug for its pump) is likely already reflected into KRMD’s stock weakness. He reminds investors that plasma can be manufactured into an IV or subQ formulation, and subQ is the growth engine and more profitable for CSL.
As a result, he questions how big of an impact this will ultimately have to KRMD and reminds investors his view that KRMD’s current estimates are too low and numerous items serve as material upside to the model: indication expansion, new Ig drugs, new non-Ig drugs and OUS expansion. Alex rates KRMD shares a Buy.
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