Allium Medical (TA:ALMD) boasts a portfolio of products in diverse clinical areas such as urology and cardiovascular, with the majority of revenues derived from urology stents. Having achieved revenue CAGR of 19% in 2011-15, we expect Allium’s growth to accelerate in the medium term, driven by new markets, resulting in 2015-20e revenue CAGR of 41%. We initiate coverage of Allium with a DCF valuation of NIS1.95-2.08/share.
Growing revenues in key markets
Allium’s peripheral stents and EndoFast urogynecology devices generate the bulk of revenues (95% of NIS5.2m in 2015). The company has had a steady increase of revenues since 2011, which accelerated in the last year in key markets in Europe, Asia and other countries. Furthermore, new distribution agreements signed with regional partners worth NIS185m provide a revenue base of up to 10 years.
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