Bioventix

12 November 2020
By Maynard Paton

Results summary for Bioventix (BVXP):

• Very satisfactory FY 2020 figures, although H2 growth subsided to mid-single-digits after the pandemic reduced demand for routine blood tests.

• A 21% final-dividend lift plus a special payout for the fifth consecutive year underpinned a generally positive outlook.

• Revenue from vitamin D gained 10% and may finally have “plateaued”, while troponin sales quadrupling within the next two years is apparently “plausible“.   

• The books remain in excellent shape with record 79% margins, robust cash flow, a £5m cash buffer and no debt.

• The ace financials and predictable customer income leaves an understandably lofty P/E of 32. I continue to hold.

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01 May 2020
By Maynard Paton

Results summary for Bioventix (BVXP):

• Very satisfactory 26% first-half profit growth led by continued demand for the group’s vitamin D antibody.

• A 20% dividend lift alongside presentation references to broker forecasts were very reassuring given the current Covid-19 uncertainty.

• The fledgling troponin product seems to have gained momentum while an emerging pollution-biomonitoring project offers intriguing long-term potential.

• Despite a part-time FD and an accounting error, the books remain in excellent shape with terrific 80% margins, a notable cash buffer and no debt.

• The seemingly ‘pandemic-proof’ outlook leaves the valuation remaining understandably rich with an underlying P/E of 34. I continue to hold.

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17 December 2019
By Maynard Paton

Results summary for Bioventix (BVXP):

• Satisfactory double-digit growth spearheaded by notable demand for the group’s main antibody.

• Progress beyond 2020 now appears dependent entirely on the new troponin product, revenue from which remains low.

• An unsettling tweak to management’s outlook suggests the pipeline antibodies may require a further five years of development.

• The accounts remain in excellent shape with terrific margins, appealing equity returns and minimal reinvestment requirements that have prompted yet another special dividend. 

• The valuation remains rich with an underlying P/E of 28. I continue to hold.

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16 April 2019
By Maynard Paton

Results verdict on Bioventix (BVXP):

• Very satisfactory 24% growth led by ongoing “modest” demand for the group’s vitamin D antibody.

• Effect of terminated product licence may have obscured an underlying 28% revenue advance.  

• Fledgling troponin product plus various pipeline developments offer intriguing long-term potential.  

• First-class accounts continue to exhibit terrific margins, net cash and scope for further special dividends.

• Valuation remains understandably rich with an underlying P/E of 34. I continue to hold.

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12 October 2018
By Maynard Paton

Update on Bioventix (BVXP).

Event: Preliminary results for the year to 30 June 2018 published 08 October 2018.

Summary: The antibody specialist delivered yet another set of record results, with my number-crunching indicating underlying growth of 20%.  However, I was disappointed to discover early sales of the important new troponin product had been below expectations — and may have left the lofty P/E valuation open to debate (at least for now). Still, the business continues to exhibit magnificent accounts while a special dividend for the third consecutive year underpins the board’s confidence. I continue to hold.

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26 March 2018
By Maynard Paton

Update on Bioventix (BVXP).

Event: Interim results for the six months to 31 December 2017 published 26 March 2018

Summary: The antibody specialist delivered another set of impressive results. I had been concerned about a possible ‘revenue gap’ emerging this year following the termination of certain product income. However, these concerns have now diminished — BVXP’s other sales still seem to be growing fast (I estimate at 30%) while management has become more confident about the early contribution from the new troponin product. The group’s financials remain top class and could even be improved if all of the royalties were collected on time. The 25x multiple is understandable, and I continue to hold.

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16 October 2017
By Maynard Paton

Update on Bioventix (BVXP).

Event: Preliminary results for the year to 30 June 2017 published 16 October 2017

Summary: The antibody specialist delivered another outstanding set of results, as astonishing margins, robust cash production and magnificent equity returns once again underlined the group’s wonderful economics. However, matters were tempered somewhat by management remarks about the immediate revenue potential of a new product. It could mean progress during 2018 won’t be very impressive, which may leave the current 29x multiple rather exposed. I’m hoping things work out for the best, and continue to hold.

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27 March 2017
By Maynard Paton

Quick update on Bioventix (BVXP).

Event: Interim results for the six months to 31 December 2016 published 27 March 2017

Summary: The latest RNS from this antibody developer contained yet more bumper figures, and showcased impressive all-round growth and a record H1 operating margin of 79%. One startling achievement was that the extra £754k of revenue brought with it additional administrative expenses of only £1k. Progress may be interrupted later this year by the loss of certain product income, but the share price suggests there won’t be any problems with a new antibody about to launch. I have my fingers crossed everything works out, and continue to hold. 

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26 October 2016
By Maynard Paton

Quick update on Bioventix (BVXP).

Event: Preliminary results and shareholder presentation for the year to 30 June 2016 published 17 October 2016

Summary: The antibody developer had already said this statement would reveal bumper results, but the figures were still better than I had expected. Although progress was helped by post-Brexit currency movements, it was clear the underlying business delivered yet another robust performance. The financials remain extremely impressive, with the second-half operating margin hitting an incredible 80%. The icing on the cake was management underpinning its confidence with the declaration of a welcome £1m special dividend. I continue to hold.

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10 October 2016
By Maynard Paton

Today I’m reviewing another of my recent investments.

The company in question is Bioventix (BVXP), which you may recall I revealed as a fresh holding within this third-quarter portfolio update.

I purchased my BVXP shares at an average price of 1,133p (including all costs) during August 2016. The bid price is presently 1,250p and the position currently represents approximately 5% of my portfolio.

I have to admit, BVXP is somewhat racy in comparison to many of my existing holdings. In particular, I may have paid ‘a high price for a cheery consensus’ following the company’s impressive progress.

There are also drawbacks involving a limited customer base and certain product revenue about to cease. The business is not that straightforward either — it develops sheep monoclonal antibodies for use in blood tests.

Nonetheless, supporting the notion that BVXP has above-average investment potential is what seems to be a very respectable competitive position, the benefit of long-term royalty income, some impeccable financials and leadership through the group’s founder. 

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