Sebastien Lemonnier of INOCAP Gestion presented his in-depth investment thesis on Dermapharm (Germany: DMP) at European Investing Summit 2018.
Dermapharm is a family-owned leading specialty pharma player in Germany. It focuses on branded products, offering a mix of originator and patent-free medicals in growing niche markets with low competition and high margins. Run by a strong management team for the past two decades, the high-single-digit expansion strategy is driven by a rich in-house development pipeline of new products, along with a proven “buy and build” track record and international expansion of its OTC hyperthermia medical device business. Combined with operational excellence and margin improvement, top-line growth should result in disproportionate operating profit growth, improving EBIT margin to more than 20%. Publicly traded since February 2018, Dermapharm remains a neglected stock while providing high-quality fundamentals, including strong results in the past two quarters. Management recently confirmed guidance for top-line growth of 20-25+% and EBITDA of 22-27+%. The shares recently traded at ~13x 2019E EBIT.
The full session is available exclusively to members of MOI Global.
Members, log in below to access the full session.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:
About the instructor:
Sebastien Lemonnier started his carreer in 2003 as financial analyst at Tocqueville Finance. He was promoted as european fund manager in 2006 running the UCIT fund Tocqueville Value Europe and pursued his carreer for Mansartis, a Paris based multi family-office in 2012. He joined INOCAP Gestion in 2017, managing Quadrige Europe Midcaps. Sebastien holds a Masters Degree in Financial Management from Panthéon-Sorbonne Paris. As a hobby, he played tennis in competition, but now enjoys playing rugby and english boxing.
About The Author: MOI Global Editorial Team
The MOI Global Editorial Team, led by John Mihaljevic, CFA, includes community builders, event organizers, writers, editors, research associates, security analysts, and fanatical member support advocates. Our sole purpose is to serve the members of MOI Global as well as we possibly can in order to help them learn, invest intelligently, and build lifelong friendships with like-minded people.
Who is MOI Global? In recent years, The Manual of Ideas has expanded to become more than simply “the very best investing newsletter on the planet” (Mohnish Pabrai). We are now a thriving global community of intelligent investors, connected through great ideas, thought-provoking interviews, online conferences, live member events, and much more.
Members of MOI Global enjoy complimentary access to a growing array of resources and content related to the art of intelligent investing. Members also enjoy preferential access to selected offline events as well as exclusive access to other events hosted by MOI Global, including the Zurich Project Summit, the Latticework Conference, and Ideaweek.
More posts by MOI Global Editorial Team