SRX Details
 
Removed from S&P /ASX 100 Index: Sirtex Medical Ltd (ASX: SRX) recently announced for the issuance of 3,250 performance rights with vesting occurring on June 30, 2019. On the other hand, the stock has been removed from the S&P /ASX 100 Index effective at the open on March 20, 2017, as a result of the March quarterly review. Despite this, the stock surged 4.5% on March 10, 2017.
 
Decent global sales growth in 1H 17: The group cited for difficult trading conditions experienced in the 1H 17 and reported for 19.8% drop in net profit after tax while the operating cash flow dropped 3.4%. On the other hand, the global dose sales growth of 5.6% was within the revised guidance of 4-6%. Americas’ dose sales of 4,248 were up 5.5% while Europe, Middle East & Africa’s dose sales were up 4.1%. Asia Pacific dose sales surged 10.2%. Further, cash on hand moved up by 34.2% in 1H 17. Dose sales five year CAGR was 17.5% while sales revenue five year CAGR was 25.1%. Owing to higher COGS, gross margin was down 70 bps. SRX aims to present SARAH results at EASL/ILC meeting during 19-23 April 2017, while SIRveNIB results are expected to be presented at ASCO meeting during 2-6 June 2017. The group has reconfirmed the FY17 dose sales guidance of 5-11% and FY17 constant currency EBITDA guidance of $65-74 million. 

1H16 - 1H17 reported NPAT reconciliation (Source: Company Reports)
 
The group is still positive of having a long-term growth potential. We maintain a “Hold” recommendation on the stock at the current price of $ 17.55
 

SRX Daily Chart (Source: Thomson Reuters)

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