Edison Investment Research - Creo Medical Group (CREO) Creo Medical - Consumables business divested in strategic move

Report

Edison Investment Research

Sean Conroy

Creo Medical - Consumables business divested in strategic move

Creo Medical has announced the sale of a majority (51%) stake in its European consumable business to Chinese medical-device manufacturer Micro‐Tech for an enterprise value of €72m (2.3x EV/sales; 20x EV/EBIT). The deal is expected to complete in Q125 and will net the company c €30m (£25m) in dry powder. We see the sale of this mature business as a strategic move, providing liquidity as Creo accelerates its effort to launch its core suite of electrosurgical devices and partner its proprietary Kamaptive technology, both areas of higher growth potential. The European consumables business, which primarily includes Albyn Medical (acquired by Creo in July 2020), will likely be accounted as an investment in associates, requiring adjustments to our forecasts, following deal closure. We keep our estimates unchanged for now.

19/09/2024 1 EN

Underlying

Creo Medical Group

Creo Medical Group is a medical device company focused on the field of surgical endoscopy, a recent development in minimally invasive surgery. Co. is focused on developing and commercializing a suite of medical devices based on its CROMA electrosurgery platform.

See profile

GB00BZ1BLL44 London Stock Exchange United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

See profile

Analysts

Sean Conroy

Other Reports on these Companies

Edison Investment Research

Creo Medical - Intuitive deal expansion is a notable milestone

Creo Medical has expanded its collaborative agreement with leading robotics manufacturer Intuitive Surgical, to include additional sites in the UK and Europe testing MicroBlate Flex in combination with Intuitive’s Ion surgical system for combined lung cancer diagnostics and treatment. The first such successful procedure under a clinical trial setting was announced in March 2024 by Professor Shah at Royal Brompton Hospital and the addition of new centres could potentially drive accelerated adoption of the MicroBlate Flex (commercial roll-out is planned over the next 12 months, with first proced...

July 5, 2024 July 5, 2024 1 EN

Edison Investment Research

Creo Medical - Setting the stage for pivotal growth

Creo Medical’s FY23 results recapped strategic, regulatory and operational wins for its core electrosurgical device suite, including Speedboat’s approval for upper gastrointestinal (GI) procedures in Europe and launch of Speedboat UltraSlim. With MicroBlate and SpydrBlade nearing commercial launch and increased traction with partners Intuitive Surgical and CMR Surgical, we anticipate the product uptake curve to steepen in the medium term. FY23 was a solid year with 13.4% y-o-y revenue growth and Creo’s core portfolio more than doubled to £2.3m, with a c 120% increase of its user base. Q124 cor...

May 20, 2024 May 20, 2024 1 EN

IP Group - Management sees positive portfolio momentum

IP Group reported broadly stable private portfolio values in H124, assisted by the positive revaluation of Featurespace, an AI-powered fraud and financial crime detection business, which delivered strong top-line growth of 46.5% in 2023 to £50.4m. This helped offset a further carrying value reduction of First Light Fusion and a partial write-down of Ultraleap Holdings, a human-machine interface business. The de-rating of listed Oxford Nanopore (ONT) was therefore the major driver behind IP Group’s 9% NAV fall in total return (TR) terms in H124. Roughly half of ONT’s share price decline has rev...

10h / 21m 10h / 21m 1 EN

Pedro Fonseca

Pedro Fonseca

Utilico Emerging Markets Trust - Market not reflecting very strong fundamentals

Utilico Emerging Markets Trust (UEM) is managed by Charles Jillings, at specialist value-based investor ICM. He reports that, operationally, the trust’s investee companies are performing extraordinarily well, although this is not being reflected in the market. The manager suggests that investors have multiple distractions including concerns about a US recession, the US presidential election and wars in Ukraine and the Middle East. UEM’s investments in infrastructure and utility assets ensure the fund has a consistently low beta. The use of gearing has resumed following the arrangement of a new...

September 18, 2024 September 18, 2024 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Creo Medical - Consumables business divested in strategic move

Creo Medical - Intuitive deal expansion is a notable milestone

Creo Medical - Setting the stage for pivotal growth

IP Group - Management sees positive portfolio momentum

Utilico Emerging Markets Trust - Market not reflecting very strong fundamentals

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe