SPINEGUARD Morning Note - 7th January 2022
SPINEGUARD | France - Medtech | |||||||
A promising partnership in the US in pediatric surgery | BUY | |||||||
▪ Distribution agreement in the growing pediatric segment | Fair value (EUR) | 1.70 | ||||||
▪ | WishBone: a clear positioning and a growing reputation | Price (EUR) | 1.110 | |||||
▪ | Assets still undervalued | Upside/down side | +53.2% | |||||
A timely agreement
SpineGuard announced last night that it has signed an exclusive distribution agreement with WishBone Medical (a young American company - created in 2017) to distribute PediGuard in pediatric orthopedic centers in the United States. This commercial partnership in the world's largest market seems to us to be very timely, especially since it coincides with the launch of DSG Connect, the connected interface that provides comfort for the surgeon during surgery. Apart from a few cases of spinal trauma requiring spinal stabilization implants (accidents), the market addressed by PediGuard in children/adolescents is that of large deformities (disabling scoliosis) requiring correction of several vertebral levels with the installation of rods held in place by dozens of pedicle screws. Surgeons need to check the placement of the implants multiple times with x-rays. Young patients and caregivers are therefore exposed to particularly high doses of x-rays, which PediGuard helps to limit.
A motivated partner, a great efficiency in the field
If the legal entity WishBone Medical seems to be recent, the group benefits from a long-standing expertise in the development and validation of orthopedic devices dedicated to pediatrics (CEO Nick Deeter has been working on this "niche" for 20 years). The offer now covers various fields of bone and joint surgery with a strong focus on single-use devices. WishBone, whose positioning is very clear, has quickly become a reference player and has points of entry in nearly 90% of American pediatric hospitals. SpineGuard will benefit from a privileged and rapid access to a community of pediatric surgeons who are expected to adopt PediGuard.
Valuation and rating
The signing of this partnership is very good news. The impact on sales will remain to be assessed over the coming quarters, but we are confident in the ability of both partners to create value quickly. However, the period is still uncertain due to the pandemic whose waves of variants are still disrupting healthcare facilities (deprogramming of surgeries to free up capacity in resuscitation departments). That said, the value of SpineGuard is not solely dependent on sales of the PediGuard line. The potential also lies in the robotics projects for which we expect positive news in 2022. We therefore remain very positive on the dossier.
Next communication:FY revenues January 26th (after market)
Lionel Labourdette, PhD, MBA
lionel@biostrategic-research.com+33 617 965 019
Stock data (2022-01-06)
ISIN | FR0011464452 |
Ticker | ALSGD.PA |
Price (EUR) | 1.110 |
Market capitalisation (EURm) | 32.9 |
Free float (%) est. | 91.6 |
Floating capitalisation (EURm) | 30.1 |
Number of shares (,000) | 29,635 |
Average daily volume (3 m) | 317,426 |
12m performance
3,0 | |||||
2,5 | |||||
2,0 | |||||
1,5 | |||||
1,0 | |||||
0,5 | |||||
0,0 | 07/05/21 | 07/09/21 | 07/11/21 | ||
07/01/21 | 07/03/21 | 07/07/21 | |||
ALSGD | ALSGD rel to CAC Small & Mid 190 |
Change (%) | 1 m | 3 m | 12m |
Absolute | -1.8 | -14.6 | -11.2 |
Rel. to CAC SM190 | -4.3 | -19.6 | -25.6 |
Rel. to Next Biotech | -10.4 | -21.0 | -7.8 |
Financials (31/12)
EURm | 2020 | 2021E | 2022E | 2023E |
Sales | 4.9 | 5.6 | 6.7 | 8.1 |
EBITDA | -1.5 | -0.3 | 0.3 | 0.9 |
EBIT | -1.8 | -0.6 | 0.0 | 0.6 |
Net income | -2.7 | -1.2 | -0.4 | 0.4 |
EPS (EUR) | -0.10 | -0.04 | -0.01 | 0.01 |
Net debt | 4.4 | 3.2 | 1.5 | 0.1 |
Key ratios
2020 | 2021E | 2022E | 2023E | |
EV/Sales | 7.9x | 6.3x | 5.2x | 4.1x |
EV/EBITDA | na | na | 104.8x | 35.5x |
EV/EBIT | na | Na | 1384x | 53.2x |
PER | na | Na | na | 94.5x |
ROIC | na | Na | 1% | 16% |
ROE | na | Na | Na | 8% |
EV/IC | 9.4x | 8.2x | 8.3x | 8.3x |
Gearing | na | 220% | 49% | 2% |
The issuer and Biostrategic Partners have agreed that Biostrategic Partners will produce and disseminate investment research as a service
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Profit and Loss
As of 31/12 (EURm) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021E | 2022E | 2023E |
Sales | 7.46 | 8.17 | 7.58 | 6.83 | 4.85 | 5.55 | 6.71 | 8.14 |
Change n-1 | 17.6% | 9.5% | -7.3% | -9.9% | -29.0% | 14.4% | 20.9% | 21.3% |
Other revenues | - | - | - | - | - | - | - | 1.00 |
Total revenues | 7.46 | 8.17 | 7.58 | 6.83 | 4.85 | 5.55 | 6.71 | 9.14 |
Gross margin | 6.35 | 6.95 | 6.55 | 5.77 | 4.04 | 4.81 | 5.82 | 7.08 |
EBITDA | -3.31 | -2.66 | -0.86 | -0.14 | -1.49 | -0.33 | 0.33 | 0.94 |
Change n-1 | 11% | 20% | 68% | 84% | -993% | 78% | 202% | -183% |
Depreciation & amortisation | 0.33 | 0.31 | 0.26 | 0.30 | 0.35 | 0.30 | 0.31 | 0.32 |
Goodwill | - | - | - | - | - | - | - | - |
EBIT | -3.63 | -2.96 | -1.11 | -0.43 | -1.84 | -0.63 | 0.03 | 0.63 |
Change n-1 | 9% | 18% | 63% | 61% | -326% | 66% | 104% | -2393% |
Net financial income | -0.54 | -1.16 | -1.21 | -0.64 | -0.84 | -0.53 | -0.40 | -0.28 |
Minorities | - | - | - | - | - | - | - | - |
Other | - | - | - | - | - | - | - | - |
Net profit before tax | -4.18 | -4.13 | -2.32 | -1.07 | -2.68 | -1.16 | -0.38 | 0.35 |
Tax | - | - | -0.02 | 0.39 | -0.04 | - | - | - |
Net in come | -4.18 | -4.13 | -2.33 | -0.69 | -2.72 | -1.16 | -0.38 | 0.35 |
Change n-1 | -8% | 1% | 43% | 71% | -296% | 57% | 67% | 193% |
EPS | -0.82 | -0.72 | -0.34 | -0.05 | -0.12 | -0.04 | -0.01 | 0.01 |
EPS fully diluted | -0.75 | -0.65 | -0.31 | -0.05 | -0.10 | -0.04 | -0.01 | 0.01 |
Gross margin (% of sales) | 85.1% | 85.1% | 86.5% | 84.5% | 83.2% | 86.6% | 86.8% | 87.0% |
EBITDA (% of sales) | NA | NA | NA | NA | NA | NA | 5.0% | 11.6% |
EBIT (% of sales) | NA | NA | NA | NA | NA | NA | 0.4% | 7.7% |
Net margin (% of sales) | NA | NA | NA | NA | NA | NA | NA | 4.3% |
Cash Flow statement
Au 31/12 (MEUR) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021E | 2022E | 2023E |
Net income | -4.18 | -4.13 | -2.33 | -0.69 | -2.72 | -1.16 | -0.38 | 0.35 |
Depreciation and amortisation | 0.33 | 0.31 | 0.26 | 0.30 | 0.35 | 0.30 | 0.31 | 0.32 |
Goodwill | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Change in WCR | -1.01 | 0.26 | -0.08 | 0.27 | 0.64 | -0.51 | 0.34 | 0.29 |
Others | 0.83 | 1.05 | 1.49 | 0.71 | 1.04 | 0.88 | 0.75 | 0.68 |
Cash-flow from operations | -4.03 | -2.51 | -0.67 | 0.60 | -0.68 | -0.48 | 1.03 | 1.63 |
Capex | -0.06 | -0.05 | -0.05 | -0.08 | -0.05 | -0.08 | -0.08 | -0.08 |
Free cash flow | -4.09 | -2.56 | -0.72 | 0.52 | -0.73 | -0.56 | 0.95 | 1.55 |
Acquisitions | -0.09 | - | - | -0.15 | -0.15 | -0.15 | -0.15 | -0.15 |
Divestments | 0.01 | - | - | - | - | - | - | - |
Dividends | - | - | - | - | - | - | - | - |
Capital increase | 0.42 | 2.21 | 1.68 | 1.75 | 1.75 | 2.00 | 1.00 | - |
Financing (bank and others) | 2.87 | 0.01 | 4.64 | 0.22 | 0.01 | - | - | - |
Others | -0.54 | -0.26 | -5.73 | -1.54 | -0.99 | -1.25 | -1.19 | -1.13 |
Change in cash over the period | -1.42 | -0.61 | -0.13 | 0.80 | -0.12 | 0.03 | 0.61 | 0.28 |
Opening cash position | 3.23 | 1.80 | 1.19 | 1.05 | 2.01 | 2.03 | 2.22 | 2.97 |
Closing cash position | 1.80 | 1.19 | 1.06 | 1.85 | 1.89 | 2.07 | 2.82 | 3.25 |
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Balance sheet
Au 31/12 (MEUR) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021E | 2022E | 2023E |
Fixed assets | 0.18 | 0.14 | 0.12 | 0.63 | 0.50 | 0.43 | 0.35 | 0.26 |
Intangible assets | 1.11 | 0.90 | 0.72 | 0.72 | 0.69 | 0.55 | 0.40 | 0.25 |
Goodwill | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 |
Financial assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Inventories | 1.02 | 0.81 | 0.84 | 0.66 | 0.66 | 0.55 | 0.67 | 0.81 |
Account receivables | 1.41 | 1.38 | 1.32 | 0.95 | 0.71 | 0.93 | 1.13 | 1.37 |
Other receivables | 0.68 | 0.54 | 0.59 | 0.55 | 0.67 | 0.48 | 0.55 | 0.66 |
Cash and cash equivalents | 1.80 | 1.19 | 1.06 | 1.40 | 1.22 | 1.41 | 2.16 | 2.59 |
Prepaid expenses | - | - | - | - | - | - | - | - |
Other non-current assets | 0.13 | 0.12 | 0.13 | 0.50 | 0.51 | 0.51 | 0.51 | 0.51 |
Total assets | 9.41 | 8.15 | 7.86 | 8.50 | 8.06 | 7.94 | 8.85 | 9.53 |
Equity | 1.19 | -0.21 | -0.50 | 0.59 | -0.01 | 1.46 | 3.03 | 4.28 |
Others | - | - | - | - | - | - | - | - |
Provisions | 0.07 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
Financial debt | 6.00 | 6.23 | 6.07 | 6.08 | 5.64 | 4.63 | 3.65 | 2.66 |
Account payables | 1.19 | 1.04 | 1.16 | 1.04 | 1.34 | 0.70 | 0.85 | 1.03 |
Other debts | 0.96 | 0.98 | 0.81 | 0.62 | 0.88 | 0.93 | 1.12 | 1.36 |
Deferred income and other liabilities | - | 0.06 | 0.26 | 0.11 | 0.15 | 0.15 | 0.15 | 0.15 |
Total liabilities | 9.41 | 8.15 | 7.86 | 8.50 | 8.06 | 7.94 | 8.85 | 9.53 |
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Detection of potential conflicts of interest
Company | Potential conflicts of interest with Biostrategic Partners | ||||||||
SPINEGUARD | a) | b) | c) | d) | e) | f) | g) | ||
No | No | No | No | Yes | No | No | |||
The analyst has a familial relationship with a founding partner of IPF Partners who holds SpineGuard' bonds with warrants attached
- Biostrategic Partners has participated or is participating. either as lead manager or member of an investment or guarantee syndicate for a financial transaction. either as advisor of a public offering over the last twelve months or as Listing Sponsor of the company.
- Biostrategic Partners holds an investment stake greater than or equal to 5% in the capital of the company under analysis.
- The company who is the subject of this analysis holds an investment stake greater than or equal to 5% in Biostrategic Partners.
- Biostrategic Partners and/or one of its affiliates is/are liquidity provider(s) or market maker(s) for (one of) the company's financial instrument/s.
- Biostrategic Partners has agreed with the company to provide a service of production and distribution of analysis regarding the company.
- Biostrategic Partners has modified its conclusions after notifying the company before its distribution of this analysis.
- The person/s responsible for the analysis. a director or a member of the Board of Directors of Biostrategic Partners is a manager. director or member of the Board of Directors of the company.
Company | Potential conflicts of interest with SwissLifeBanquePrivée | ||||||||
SPINEGUARD | a) | b) | c) | d) | e) | f) | g) | ||
Yes | No | No | Yes | No | No | No | |||
- SwissLife Banque Privée has participated or is participating. either as lead manager or member of an investment or guarantee syndicate for a financial transaction. either as advisor of a public offering over the last twelve months or as Listing Sponsor of the company.
- SwissLife Banque Privée holds an investment stake greater than or equal to 5% in the capital of the company under analysis.
- The company who is the subject of this analysis holds an investment stake greater than or equal to 5% in SwissLife Banque Privée.
- SwissLife Banque Privée and/or one of its affiliates is/are liquidity provider(s) or market maker(s) for (one of) the company's financial instrument/s.
- SwissLife Banque Privée has agreed with the company to provide a service of production and distribution of analysis regarding the company.
- SwissLife Banque Privée has modified its conclusions after notifying the company before its distribution of this analysis.
- The person/s responsible for the analysis. a director or a member of the Board of Directors of SwissLife Banque Privée is a manager. director or member of the Board of Directors of the company.
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Swiss Life Banque Privée
Société Anonyme au capital de 37.092.080 €
Code établissement bancaire n°11 238
RCS Paris 382 490 001
7. place Vendôme - F 75041 Paris Cedex 01 - France Tél. : +33 1 53 29 14 14
BioStrategic Partners SAS
Société par Actions Simplifiée au capital de 30. 000 €
RCS Paris 530 430 487
140 bis. rue de Rennes - F 75006 Paris - France
Tél. : +33 6 17 96 50 19
BioStrategic Research est une marque déposée de BioStrategic Partners SAS
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Disclaimer
SpineGuard SA published this content on 06 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 January 2022 09:47:06 UTC.
