Randlab founder wanted ANCR as new parent. Good sign. |
 Hi p1nk,
Was interesting to hear about the P.E. houses trying to buy Randlab and the founder going with ANCR.
Panmure - 23/1/25:
"...structured the deal in such a way that Randlab will still benefit from the founder’s input, particularly around new product development."
Good sign of innovation:
Ecuphar on LinkedIn - 6/2/25:
Ecuphar launches ENVIRA: The app that will revolutionize veterinary anaesthesia!
Are you veterinarian looking for a tool to help you assess your patients' anaesthetic risk quickly and accurately?
We have the solution! From the hand of its creator, Gaspar Soler, we present ENVIRA (Numerical Scale of Individual Assessment of Anesthetic Risk), the new free app developed by ECUPHAR that will allow you to:
📌Assess the anaesthetic risk of each patient individually.
📌Access to a numerical scale that is easy to use and understand.
📌Make informed and personalized decisions for each case.
📌Improve the safety of your patients during anesthesia.
ENVIRA has been designed by veterinarians who are experts in anaesthesia and based on the most current scientific evidence. It's the perfect tool to take your veterinary practice to the next level! |
Lines up with my take on the ANCR situation. Equine tend to be well heeled etc. Just have to be patient. |
Some good insights from fundie Stephen English:
Vox Markets - 4/2/25
-ANCR: 19.48 |
Hi Gopher,
Hopefully, the CFO has undercooked the 25 forecast and they can start to beat and enter an earnings upgrade cycle.
Got the ingredients, whether they've got the momentum is an open question. |
Thanks SimonThis is a very interesting acquisition and as I have said in the past the Company remains somewhat under the radar with its potential not baked into share price.Looking forward to Jenny Winters next update on investors meet platform, of course execution is everything. |
Panmure - 23/1/25:
Randlab sells a range of equine generic pharmaceuticals as well as some over-the-counter (OTC) products, primarily in Australia but also in New Zealand, Japan and the UAE.
It serves all equine markets (recreational, sports, farm) but is primarily focused on the sports market, covering racehorses and polo ponies. Randlab has four sales reps in Australia, one in New Zealand and a sales office in the UAE and is well known in the sports equine market. Products are primarily shipped to customers via a range of wholesalers, although there is some direct business. The portfolio consists of 58 brands, of which 47 are veterinary pharmaceutical brands owed by Randlab. The balance are third-party pharmaceuticals and OTC brands, but these only accounted for 5% of revenue in the year to June 2024, with 95% of revenue coming from owned brands. This means that Randlab shouldn’t face any headwinds from brand owners shifting priorities.
Given that Animalcare doesn’t have a presence in Australia, integration will be relatively straightforward. The Randlab founder, Angelis Vasili, will be stepping down post-acquisition and his role will be taken over by Bruce Bell, who has been with Randlab since 2020 and who has a broad-based background in animal health. In addition, Brad Saunders will be joining as Finance & Operations Director for ANZ. There is always some risk when a founder steps down, but we take comfort from the fact that the new General Manager has been in place for a while. Angelis will also be retained on a consulting contract and he and the other shareholders have all signed five-year non-competes, which provides an additional level of protection.
The equine market is the fastest-growing veterinary pharmaceutical market, travelling at an 8% CAGR and growth in Asia Pac is even higher. Post the acquisition, Animalcare will generate around 23% of revenue from equine and 14% from Asia Pac. Randlab should be able to boost revenue growth through product launches, with two approaching launches, while there are also opportunities to register Randlab’s products in Europe and vice versa. Lastly, Randlab gives Animalcare a beachhead in Asia Pac from which to expand into companion animals and, with a number of potential deals in the pipeline, we may get news on this front sooner rather than later.
Our forecasts for Randlab are cautious, assuming revenue growth of 5%, below market growth and a steady EBITDA margin. We’ve assumed that the change of ownership slows growth in the short term and have not taken into account any of the potential revenue opportunities or future product launches. Our model suggests that the acquisition is 20% accretive in FY25E and 21% accretive in FY26E. We expect cash generation to remain strong, and not only does Animalcare still have around £20m of acquisitions / licensing deal firepower, but the balance sheet should be largely de-geared by FY27E. In short, the financials are compelling. |
I don't have proof but am of the opinion the Equine side is fairly recession proof looking at the type of people owning and taking care of and spending on horses in the developed world and Mid-East.
If so, the Randlab acquisition may have also helped de-risk Animalcare exposure to the wider economic winds. |
Ahead of 85-90%.
Beautiful. |
Excellent.
"There was continued improvement in cash generation through the year with cash conversion at a rate well above that of the prior year and ahead of prior guidance of 85-90%." |
Panmure - 23/1/25:
2025
-EPS: 14.1p
2026
-EPS: 16p
Valuation remains attractive – While the share price reaction to the acquisition has been relatively muted, we think it has moved the valuation on from one based on the potential from acquisitions, to one based on reality. We remain of the view that Animalcare’s growth trajectory warrants a premium rating, and we value the shares at 330p based on 13x FY25E EV / EBITDA. This is supported by our DCF and sum of the parts valuations. The recent trading update was encouraging, with the numbers in line with expectations. In terms of risk, while acquisitions are never riskfree, we take comfort that the management team has learnt from the Ecuphar experience and structured the deal in such a way that Randlab will still benefit from the founder’s input, particularly around new product development. |
TU due usually by end of January. |
Yes, will relook at 260 and 359.
Yes, could fly, in no rush. Sensible management building for the long term.
Was surprised the price they achieved for the tagging side of the business, was an excellent move.
A bit overweight ANCR but see no reason to trim it, one to ride to see what happens.
It also has something the likes of Zoetis need, decent growth potential with margins to be proud of along with increased geographic spread after recent acquisition. ZTS are OK geographically but a bit stale. Held them a few years back, Decent run 2018 for 3 years. They are also very active in Equine but ANCR would currently be noise to them as an acquisition. That may change in a few years, at a much higher price. |
p1nk,
Your target price of 359p looks doable in 25 and 400p+ in 26.
The unpredictable factor remains the equine nanobody news. Should the updates be positive, the stock could potentially double. Chris Mills anticipates an eventual five-fold increase in value if the nanobody's effectiveness is confirmed. |
EI,
ANCR now has the rights to sell Plaqtiv throughout Europe all channels, Amazon and the likes of Viovet should see some good growth. 36%+ in H1, and it sounds like they are going to put marketing spend behind it.
I see Scott Galloway has Shein down as the IPO of the year - 7.15 minute mark:
Raspberry Pi has rocked hard since flotation. |
Thanks Simon, it was a very nasty shock, however more than 10 years ago now.
The vet initially tried sedation but the issue was too extensive for that too be viable. |
It looks like a great product that will hopefully prevent many premature deaths. I'm sorry to hear of your loss! Will you get some for the cats you have now? |
Thanks.
I lost a beautiful cat sometime ago to a stoke, while recovering from a GA which the vet administered to deep clean his teeth. An issue that arose because of plaque causing gum problems. |
EI,
Latest data is in the fundraise RNS - 3/12/24: |
Do the BOD hold in quantity?, any recent significant BOD transactions.. Thanks |
Some good reviews for Plaqtiv on Amazon:
Amazing Water Liquid
Unbelievable. Cat was likely to have teeth removed due to plaque and build up. 3 months after using liquid, not only drinking more and crunching more but at vet follow up they were amazed at this product. Have shared name of brand with many pet friends. Thank you. |
Now Randlab has closed, maybe a broker note in the coming days? |
c3,
Cheers! |
post 91 above should read concizumab approved 21/12/24 |
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