Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1
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Omero
Forumer storico
grazie , cosi' cambia la musica
ps mi posteresti il link dell'elenco ?
finanzen.ch: Realtimekurse | Aktien | Börsenkurse | Börse
fedro10
è la somma che fa il totale...
US516545AC45 Lantheus Medical
dopo : US91359PAJ93 Universal Hospital Services Inc. New Anleihe: 7,625% bis 15.08.2020
c'e anche questo ancge se un po caro:
Achieve Over 10% Short Term Yields With Lantheus Medical Imaging Bonds, Matures May 2017
This week, we look at a healthcare company that has achieved a commanding market share with two of its top selling products. Lantheus Medical Imaging is a developer and distributor of imaging agents used in medical diagnostic procedures. Its two top selling products, DEFINITY and Technelite, have dominant market shares of 78% and 40% respectively when measured against their competitors. While these bonds were rated Caa1/B- by Moody’s (on 6/26/14) and S&P (on 11/4/13), Lantheus had a breakout year in 2014, registering a whopping 84% increase in adjusted EBITDA. In addition, for Q4 2014, it more than doubled its operating margin from the same time period in 2013, growing from 6.8% to 16.9%. Furthermore, the company has the option to call this debt at par in May 2016, and its IPO plans, if revived, could result in the company redeeming these bonds early.
Unlike many industries, healthcare most often does not decline during a recession or economic downturn. Additionally, in the United States, a key driver for growth in radiopharmaceuticals, of which imaging agents are included, is the aging and increasingly obese population. Both of these factors strongly favor continued growth for Lantheus Medical. Therefore, we see this very short 25 month US dollar bonds, couponed at 9.75%, being very attractively priced at near or below par, and have marked them for addition to ourFX1 andFX2 high yield global income portfolios.
Growth in Radiopharmaceuticals
Radiopharmaceuticals play a vital and crucial role in the medical, pharmaceutical and diagnostic industries. A radiopharmaceutical is a radioactive drug used in diagnostics as well as the treatment of certain medical problems or diseases. The global market for radiopharmaceuticals continues to grow, driven by the increase in the number of nuclear imaging procedures, primarily in the fields of cardiology, neurology, and oncology.
In 2014, the global market was nearly USD $4.4 billion and is forecast to expand through 2019 at a projected compound annual growth rate of 8%, approaching USD $6.4 billion. As the healthcare markets in China and Japan mature, those markets are demanding higher quality healthcare. Imagining procedures are part of that improved care. Not surprisingly, the projected growth rate for the Asia-Pacific market between now and 2019 is forecast to be the fastest growing market for radiopharmaceuticals, with a CAGR of 10.4%
The North American market is expected to grow from USD $2.4 billion in 2014 to approximately USD $3.8 billion in 2019 at an estimated compound annual growth rate of 9.2%. The US population is aging and increasingly obese. Currently, one in three adults has some form of cardiac disease. From this population, there are 15.5 million people who undergo nuclear scans related to that disease. Lantheus’ top-selling product, DEFINITY, is used specifically to help physicians assess the heart’s main pumping chamber. Considering this growing market along with DEFINITY’s current market share of 78%, it would not be surprising to continue to see rapid growth in DEFINITY’s annual sales.
About the Issuer:
Lantheus Medical Imaging is a global leader in developing, manufacturing and distributing innovative diagnostic medical imaging agents and products that assist clinicians in the diagnosis of cardiovascular diseases and other diseases. Its current marketed products are used by nuclear physicians, cardiologists, and radiologists working in a variety of clinical settings. In addition to its marketed products, it has three candidates in clinical and preclinical development. The company’s expertise in developing innovative medical imaging agents provides a strong platform to further develop breakthrough tools for the diagnosis and management of disease.
With roots dating back to 1956, Lantheus Medical was previously owned by Dupont Pharmaceuticals and Bristol Myers Squibb. In 2008, Avista Capital Partners acquired the company from Bristol Myers and re-launched the company under its current name of Lantheus Medical Imaging. Based in Massachusetts, the company employs more than 500 people worldwide, with operations in the United States, Puerto Rico, Canada and Australia and distribution relationships in Europe, Asia Pacific and Latin America.
In July 2014, Lantheus announced plans for its initial public offering (IPO). The offering was estimated to raise approximately $125 million. However, due to poor market conditions, the IPO was withdrawn. Then, in November 2014, the company revived its plans for an IPO, but did not set any terms. If the IPO proceeds, Lantheus plans to use the proceeds to pay down a portion of these outstanding 2017 bonds, pay down its revolving credit facility and use the balance for general corporate purposes.
Lantheus Medical Products
Lantheus has two products that account for a majority of its annual revenues, DEFINITY and TechneLite. Lantheus’ leading product is called DEFINITY. DEFINITY is an injectable contrast agent used in patients with suboptimal echocardiograms, allowing physicians to assess the heart’s main pumping chamber. Currently, there are more than 30 million echocardiograms performed in the United States each year. DEFINITY is presently the most frequently used echocardiographic contrast agent in the US of any of the approved agents. As of December 2014, Lantheus estimated that it had approximately 78% share of the market for contrast agents in the United States.
DEFINITY’s revenues have shown outstanding growth. Starting in 2012, revenues registered at $51.4 million USD. In 2013, revenues grew to $78.1 million. Finally, in 2014, revenues came in at $95.8 million, nearly doubling in just a few years time. As Lantheus’ fastest growing and highest margin commercial product, it represented 31.7% of the company’s total revenue for 2014.
The second product, TechneLite, generates technetium which is used to prepare radiolabeled imaging agents for uses in brain imaging, thyroid imaging and blood pool imaging, among others. Technetium has a half-life of only six hours, which warrants repeated TechneLite generator purchases for radiopharmacies. As of December 2014, Latheus estimated it had approximately a 40% share of generator sales in the United States. For 2014, TechneLite accounted for 31% of total revenue. One other noteworthy product is Xenon 133. Xenon 133 is an inhaled radiopharmaceutical imaging agent used for the evaluation of pulmonary function, lung imaging and the assessment of cerebral blood flow. Currently, Lantheus is the only US manufacturer of this imaging agent.
Financials
Lantheus has made excellent progress in increasing its cash flow through its product mix and by controlling costs. The effect of these measures can be seen in its most recently released results for 2014. For 2014, the company increased its adjusted EBITDA by 84% over the previous year, growing from USD $38.4 million in 2013 to USD $70.8 million in 2014.
For the past few years, Lantheus Medical Imaging has also sought to increase its profitability. Most recently, this was evidenced by its increasing operating margin. In Q4 of 2013, the company’s operating margin was 6.8%. By Q4 of 2014, the company’s operating margin had more than doubled to 16.9%.
Lantheus has also made progress increasing its revenue. For 2014, worldwide revenue totaled USD $301.6 million, up from $283.7 million in 2013, an increase of 8%. In an effort the streamline costs, the company recently consolidated its corporate campus, relocating personnel from two of its buildings. These buildings will receive accelerated depreciation on the balance sheet and will be prepared for sale in 2015.
As of December 2014, the company had total liquidity of USD $51 million, which includes $17.8 million in cash and $33.2 million in a revolving line of credit. This level provides ample liquidity to support operating needs and / or upcoming debt service requirements.
Risks
The default risk is Lantheus Medical’s ability to perform. The company has commanding market shares, 78% and 40%, for its top two selling products, and is increasing its profitability as evidenced by its increasing operating margin. Also, adjusted EBITDA grew by 84% in 2014 over the previous year, a good indication for bondholders.
One of the key ingredients in Lantheus’ TechneLite product is Molybdenum-99 (Moly). (Moly-99 decays into technetium, which is the imaging agent).The majority of Lantheus’ Moly has historically been supplied by Noridon, a company which relies on NRU reactor owned by the Canadian government. Canada has stated it will exit the medical isotope business when the NRU reactor’s license transitions in 2016, and will provide only emergency isotope supply through March 2018. Lantheus can secure Moly from other, alternate, international sources, but at a higher cost. In order to address this issue, Lantheus recently signed an agreement with Shine Medical Technologies that will begin providing Moly in early 2018. This is the first agreement with a supplier that does not involve a government-run nuclear reactor.
Lantheus competes with a number of other firms that also provide diagnostic imaging agents. Many of these companies, like GE Healthcare and Bayer Schering, are significantly larger than Lantheus, with access to greater financial and marketing resources. Lantheus has addressed this through specialization in a few key areas of the imaging industry, where it holds significant market shares.
Lantheus Medical Imaging 2017 bonds may have similar risks, yields and/or durations to other US dollar bonds previously reviewed on our Bond-Yields.com blog, such as 9.6% Copeinca, 9.58% Rolta, or 10.2% MNC Investama.
Summary and Conclusion
Lantheus Medical Imaging had significant increases in adjusted EBITDA and operating margin in 2014. One of its two flagship products, DEFINITY, continues to have outstanding performance, with sales increasing 23% in 2014 over 2013 levels. Therefore, we think this issue offers sound diversification into the healthcare industry. This short 25 month bond offer excellent cash flow with its high 9.75% coupon, as well as a very attractive yield of about 10% when priced slightly over par. In light of these factors, we are adding these bonds to ourFixed Income-1 andFixed Income-2 global high yield income portfolios.
Issuer: Lantheus Medical Imaging, Inc
Coupon: 9.75%
Maturity: 5/15/2017
Ratings: Caa1/B-
Pays: Semi-annually
Price: 99.5
Yield to Worst Call: ~10.1% (May 2016)
dopo : US91359PAJ93 Universal Hospital Services Inc. New Anleihe: 7,625% bis 15.08.2020
c'e anche questo ancge se un po caro:
Achieve Over 10% Short Term Yields With Lantheus Medical Imaging Bonds, Matures May 2017
This week, we look at a healthcare company that has achieved a commanding market share with two of its top selling products. Lantheus Medical Imaging is a developer and distributor of imaging agents used in medical diagnostic procedures. Its two top selling products, DEFINITY and Technelite, have dominant market shares of 78% and 40% respectively when measured against their competitors. While these bonds were rated Caa1/B- by Moody’s (on 6/26/14) and S&P (on 11/4/13), Lantheus had a breakout year in 2014, registering a whopping 84% increase in adjusted EBITDA. In addition, for Q4 2014, it more than doubled its operating margin from the same time period in 2013, growing from 6.8% to 16.9%. Furthermore, the company has the option to call this debt at par in May 2016, and its IPO plans, if revived, could result in the company redeeming these bonds early.
Unlike many industries, healthcare most often does not decline during a recession or economic downturn. Additionally, in the United States, a key driver for growth in radiopharmaceuticals, of which imaging agents are included, is the aging and increasingly obese population. Both of these factors strongly favor continued growth for Lantheus Medical. Therefore, we see this very short 25 month US dollar bonds, couponed at 9.75%, being very attractively priced at near or below par, and have marked them for addition to ourFX1 andFX2 high yield global income portfolios.
Growth in Radiopharmaceuticals
Radiopharmaceuticals play a vital and crucial role in the medical, pharmaceutical and diagnostic industries. A radiopharmaceutical is a radioactive drug used in diagnostics as well as the treatment of certain medical problems or diseases. The global market for radiopharmaceuticals continues to grow, driven by the increase in the number of nuclear imaging procedures, primarily in the fields of cardiology, neurology, and oncology.
In 2014, the global market was nearly USD $4.4 billion and is forecast to expand through 2019 at a projected compound annual growth rate of 8%, approaching USD $6.4 billion. As the healthcare markets in China and Japan mature, those markets are demanding higher quality healthcare. Imagining procedures are part of that improved care. Not surprisingly, the projected growth rate for the Asia-Pacific market between now and 2019 is forecast to be the fastest growing market for radiopharmaceuticals, with a CAGR of 10.4%
The North American market is expected to grow from USD $2.4 billion in 2014 to approximately USD $3.8 billion in 2019 at an estimated compound annual growth rate of 9.2%. The US population is aging and increasingly obese. Currently, one in three adults has some form of cardiac disease. From this population, there are 15.5 million people who undergo nuclear scans related to that disease. Lantheus’ top-selling product, DEFINITY, is used specifically to help physicians assess the heart’s main pumping chamber. Considering this growing market along with DEFINITY’s current market share of 78%, it would not be surprising to continue to see rapid growth in DEFINITY’s annual sales.
About the Issuer:
Lantheus Medical Imaging is a global leader in developing, manufacturing and distributing innovative diagnostic medical imaging agents and products that assist clinicians in the diagnosis of cardiovascular diseases and other diseases. Its current marketed products are used by nuclear physicians, cardiologists, and radiologists working in a variety of clinical settings. In addition to its marketed products, it has three candidates in clinical and preclinical development. The company’s expertise in developing innovative medical imaging agents provides a strong platform to further develop breakthrough tools for the diagnosis and management of disease.
With roots dating back to 1956, Lantheus Medical was previously owned by Dupont Pharmaceuticals and Bristol Myers Squibb. In 2008, Avista Capital Partners acquired the company from Bristol Myers and re-launched the company under its current name of Lantheus Medical Imaging. Based in Massachusetts, the company employs more than 500 people worldwide, with operations in the United States, Puerto Rico, Canada and Australia and distribution relationships in Europe, Asia Pacific and Latin America.
In July 2014, Lantheus announced plans for its initial public offering (IPO). The offering was estimated to raise approximately $125 million. However, due to poor market conditions, the IPO was withdrawn. Then, in November 2014, the company revived its plans for an IPO, but did not set any terms. If the IPO proceeds, Lantheus plans to use the proceeds to pay down a portion of these outstanding 2017 bonds, pay down its revolving credit facility and use the balance for general corporate purposes.
Lantheus Medical Products
Lantheus has two products that account for a majority of its annual revenues, DEFINITY and TechneLite. Lantheus’ leading product is called DEFINITY. DEFINITY is an injectable contrast agent used in patients with suboptimal echocardiograms, allowing physicians to assess the heart’s main pumping chamber. Currently, there are more than 30 million echocardiograms performed in the United States each year. DEFINITY is presently the most frequently used echocardiographic contrast agent in the US of any of the approved agents. As of December 2014, Lantheus estimated that it had approximately 78% share of the market for contrast agents in the United States.
DEFINITY’s revenues have shown outstanding growth. Starting in 2012, revenues registered at $51.4 million USD. In 2013, revenues grew to $78.1 million. Finally, in 2014, revenues came in at $95.8 million, nearly doubling in just a few years time. As Lantheus’ fastest growing and highest margin commercial product, it represented 31.7% of the company’s total revenue for 2014.
The second product, TechneLite, generates technetium which is used to prepare radiolabeled imaging agents for uses in brain imaging, thyroid imaging and blood pool imaging, among others. Technetium has a half-life of only six hours, which warrants repeated TechneLite generator purchases for radiopharmacies. As of December 2014, Latheus estimated it had approximately a 40% share of generator sales in the United States. For 2014, TechneLite accounted for 31% of total revenue. One other noteworthy product is Xenon 133. Xenon 133 is an inhaled radiopharmaceutical imaging agent used for the evaluation of pulmonary function, lung imaging and the assessment of cerebral blood flow. Currently, Lantheus is the only US manufacturer of this imaging agent.
Financials
Lantheus has made excellent progress in increasing its cash flow through its product mix and by controlling costs. The effect of these measures can be seen in its most recently released results for 2014. For 2014, the company increased its adjusted EBITDA by 84% over the previous year, growing from USD $38.4 million in 2013 to USD $70.8 million in 2014.
For the past few years, Lantheus Medical Imaging has also sought to increase its profitability. Most recently, this was evidenced by its increasing operating margin. In Q4 of 2013, the company’s operating margin was 6.8%. By Q4 of 2014, the company’s operating margin had more than doubled to 16.9%.
Lantheus has also made progress increasing its revenue. For 2014, worldwide revenue totaled USD $301.6 million, up from $283.7 million in 2013, an increase of 8%. In an effort the streamline costs, the company recently consolidated its corporate campus, relocating personnel from two of its buildings. These buildings will receive accelerated depreciation on the balance sheet and will be prepared for sale in 2015.
As of December 2014, the company had total liquidity of USD $51 million, which includes $17.8 million in cash and $33.2 million in a revolving line of credit. This level provides ample liquidity to support operating needs and / or upcoming debt service requirements.
Risks
The default risk is Lantheus Medical’s ability to perform. The company has commanding market shares, 78% and 40%, for its top two selling products, and is increasing its profitability as evidenced by its increasing operating margin. Also, adjusted EBITDA grew by 84% in 2014 over the previous year, a good indication for bondholders.
One of the key ingredients in Lantheus’ TechneLite product is Molybdenum-99 (Moly). (Moly-99 decays into technetium, which is the imaging agent).The majority of Lantheus’ Moly has historically been supplied by Noridon, a company which relies on NRU reactor owned by the Canadian government. Canada has stated it will exit the medical isotope business when the NRU reactor’s license transitions in 2016, and will provide only emergency isotope supply through March 2018. Lantheus can secure Moly from other, alternate, international sources, but at a higher cost. In order to address this issue, Lantheus recently signed an agreement with Shine Medical Technologies that will begin providing Moly in early 2018. This is the first agreement with a supplier that does not involve a government-run nuclear reactor.
Lantheus competes with a number of other firms that also provide diagnostic imaging agents. Many of these companies, like GE Healthcare and Bayer Schering, are significantly larger than Lantheus, with access to greater financial and marketing resources. Lantheus has addressed this through specialization in a few key areas of the imaging industry, where it holds significant market shares.
Lantheus Medical Imaging 2017 bonds may have similar risks, yields and/or durations to other US dollar bonds previously reviewed on our Bond-Yields.com blog, such as 9.6% Copeinca, 9.58% Rolta, or 10.2% MNC Investama.
Summary and Conclusion
Lantheus Medical Imaging had significant increases in adjusted EBITDA and operating margin in 2014. One of its two flagship products, DEFINITY, continues to have outstanding performance, with sales increasing 23% in 2014 over 2013 levels. Therefore, we think this issue offers sound diversification into the healthcare industry. This short 25 month bond offer excellent cash flow with its high 9.75% coupon, as well as a very attractive yield of about 10% when priced slightly over par. In light of these factors, we are adding these bonds to ourFixed Income-1 andFixed Income-2 global high yield income portfolios.
Issuer: Lantheus Medical Imaging, Inc
Coupon: 9.75%
Maturity: 5/15/2017
Ratings: Caa1/B-
Pays: Semi-annually
Price: 99.5
Yield to Worst Call: ~10.1% (May 2016)
Ultima modifica:
londonwhale
Forumer storico
anche se te la facessero fare non sarebbe una bella idea: avresti pochissime controparti, con bid-offer molto ampi
gualberto
Charlie don't Surf
hai ragione...ormai se ne parla domani
arkymede74
Forumer storico
mamm amia.. io aspetto ancora che mi spieghino l adifferenza del rimborso rispetto a quanto dato da solarworld..
- Stato
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HIGH YIELD e oltre, verso frontiere inesplorate, vol.3
