2024-02-23 10:45:00 ET
Summary
- Medical equipment and device manufacturer Baxter International was another Ozempic casualty.
- BAX slid 15% the day Novo Nordisk concluded trials showing Ozempic slowed the progression of chronic kidney disease.
- The multiple on BAX collapsed from the mid-20s towards the single digits.
- With shares trading at a trough multiple on depressed earnings, we see much room for upside surprises.
The following segment was excerpted from this fund letter.
Baxter International ( BAX )
Second only to AI last year was the rhetoric and enthusiasm around GLP-1 weight loss drugs. These drugs, which by some estimates will generate over $100 billion in sales by the end of this decade, were popping up on just about every earnings call last year, with analysts drilling management teams on the risks to their business and investors punishing their stocks....
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For further details see:
Broyhill - Baxter International: Renal Care Spin-Off And Recent Revamp Should Provide Catalysts