Sirtex Medical
Recommendation
Liver cancer treatment company Sirtex Medical last week announced its dose sales for the fourth quarter of 2012. Consistent with the strong growth reported in the third quarter, dose sales rose 26% in the fourth quarter. For the full year, dose sales were up 23% (compared with a 19% increase in the previous year).
US quarterly dose sales grew 31%—lower than the 47% increase reported in the third quarter, but still an excellent result. Europe reported 11% growth for the quarter, a decent recovery from the sluggish numbers of earlier in the year.
But the Asia Pacific region took out the mantle for strongest growth this quarter, with an increase of 48%. While this region accounts for only about 5% of Sirtex’s revenue, it’s likely to be a significant source of growth in future. There’s a much higher incidence of liver cancer in Asia, which explains why Sirtex opened a manufacturing facility in Singapore in 2011 (it’s preferable for manufacturing to take place near where the treatment is administered because the radioactive ingredient in SIR-Spheres decays quickly).
The share price of Sirtex has rise 3% since Sirtex in rude health from 13 Jun 12 (Hold – $6.23). Further confirmation of progress is always welcome, but the recommendation remains HOLD.