Medica Share Discussion Threads

[p1nkfish] 18/9/2017 08:47

Looking like a rounding top forming, already?

[scooper72] 18/9/2017 08:30

Anyone got an opinion on the negative reaction by the markets?

[scooper72] 18/9/2017 08:27

Chizgreen, looks like your wish has come true. Personally would have preferred it opening up on the results.

[chizgreen68] 18/9/2017 07:20

I'm hoping it drops on open so I can top up

[soundbuy] 18/9/2017 07:14

Aye

'Strong recruitment since 30 June 2017, adding a further 24 radiologists, increasing the number of contracted radiologists to 291 as at 18 September 2017'

That's some growth from the 214 in June 2016......

[ayl30] 18/9/2017 07:07

Good results and interesting growth in contracted consultants. Huge reduction in debt, looks good for 2nd half

[thebigshortfella] 15/9/2017 16:40

Mmm...interesting how the price hit 211 and then bounced up again. Let's see what Monday brings...

[yertiz] 08/9/2017 11:38

Still not convinced then, ayesha4? FWIW I think this is an intriguing prospect and Medica are at the forefront of necessary changes within the NHS. Sure, outsourcing has gone on for years in one way, shape or form, but never always successfully - Mitie bite off more than they can chew, Serco the same and both so often fail to deliver because of the commitments they take on. They aren't always given the whole picture by the Trust employers with their tender processes either. BUPA and Nuffield employ NHS consultants, specialists and scientists to cover their workload - that is one success, certainly for the employees and patients (customers!), and are run in a well managed and business-like way - SMART, Lean and efficient, something the NHS can't boast about. NHS is composed of too many managers in Ivory towers with no business acumen and no will to succeed.

[ayesha4] 08/9/2017 10:30

You pays your money and takes your chance.

[lomax99] 07/9/2017 16:10

Shares magazine

Medica is a premium growth story


The NHS does not have enough radiologists to interpret potentially life-saving scans

Teleradiology firm Medica (MGP) is expected to enjoy rapid growth thanks to a surge in demand and a lack of radiologists in the UK.

Medica helps to provide early diagnosis of various diseases through its consultant radiologists who interpret computerised tomography (CT) and magnetic resonance imaging (MRI) scans. If these scans identify diseases earlier, it can improve treatment options and outcomes.


Strong performance since IPO

Berenberg says earnings before interest, tax, depreciation and amortisation and earnings per share are expected to grow at a compound annual growth rate of 16% and 20% respectively between 2017 and 2020.

Medica has enjoyed a strong share price performance since its IPO on 21 March 2017 when it raised £121m to pay down borrowings. Since 22 March, the stock has rallied 16.9% to 219.2p.

The company currently trades on a forecast 29.8 times earnings per share in the year to 31 December 2018, but Berenberg analyst Charles Weston thinks this premium valuation is ‘justifiedR17; in light of rapid growth.

The analyst projects 8% growth per annum in the volume of CT and MRI scans handled by the company, which will be supported by a deficit of radiologists in the UK.

There are 4.7 radiologists per 100,000 of the UK general population. This is materially below the Royal College of Radiologists’ target of 8 per 100,000, and is pushing up waiting lists.

Outsourcing trends and pricing power

One of the ways to tackle this issue is by outsourcing services. Weston says approximately 7% of CT/MRI scans are outsourced. Medica has a dominant position in the UK teleradiology market (50%) and this allows it to charge 5% to 10% more than its rivals.

The analyst also highlights that 80% of all clinical decisions are underpinned by imaging and new clinical guidelines for quicker diagnosis of diseases such as cancer and dementia call for scans.

Medica provides services to over 100 NHS trusts, as well as private hospitals and diagnostics imaging firms, and intends to expand its services to tackles conditions such as strokes.

There are risks associated with the business. Medica needs to ensure it continues to recruit radiologists to meet demand as otherwise growth could be constrained.

We were initially cautious on Medica’s dependence on the NHS and Weston also highlights the NHS exposure as a reason for some caution as 99% of sales are derived from NHS Trusts.

Despite this nagging concern we are convinced high demand and low supply will drive Medica forward.

[ali47fish] 07/9/2017 08:21

an update is due in spt - does anyone knows the date please

[thebigshortfella] 05/9/2017 14:05

Ayesha4 - are you still there?! Or are you buried under a mountain of radiology reports back at Medica HQ?! ;-)

[lomax99] 01/9/2017 13:42

‘Buy’ Medica on strong demand
Berenberg has initiated coverage of Medica (MGPM) with a ‘buy’ rating, pointing to the company’s 50% share of the growing teleradiology market.

Analyst Charles Weston placed a 260p price target on the shares, which jumped 6.4% to 224p yesterday.

‘With [approximately] 50% of the UK teleradiology market and a reputation as the premium quality provider, Medica is able to charge 5% to 10% more than its peers,’ he said.

He added there was strong demand for its services, with the National Health Service in particular struggling with capacity constraints.

‘The UK has fewer radiologists than other developed nations, resulting in increasing diagnostic waiting lists – 99% of NHS radiology departments were unable to meet their reporting requirements in 2015.’


hxxp://citywire.co.uk/money/the-expert-view-associated-british-foods-hss-and-ifg/a1045159?

[tlgo] 31/8/2017 08:42

Ayesha - I am also genuinely interested. I'm not saying you are wrong, that's not why I asked. I am always intrigued on where information like that is found. For me I couldn't care less who is right or wrong on a message board. Care to expand?

[thebigshortfella] 30/8/2017 22:05

steve3sandal - mmmmm...thanks for highlighting.

Ayesha4 - of course you don't have to, but can you back up anything that you are saying other than with a flimsy "come back to me if I am wrong"?

[steve3sandal] 30/8/2017 21:09

Thebigshortfella.....see what Ayesha4 flagged in post 49.

[ayesha4] 30/8/2017 20:15

Come back to me if I am wrong.

[thebigshortfella] 30/8/2017 19:35

ayesha4 - I am curious if you have insider insight?

[ayesha4] 30/8/2017 19:10

Might well go to 250p.

[tlgo] 30/8/2017 14:30

Ayesha - Where did you find that information? Just curious.

[albanyvillas] 30/8/2017 13:12

250p next rung