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Sirtex Medical Limited (ASX:SRX) dose sales fall, takeover nears conclusion

Credit: Sirtex Medical

Biotechnology medical device group Sirtex Medical Limited (ASX: SRX) has seen it share price zoom up almost 100% in the 2018 calendar year as a result of its imminent takeover, following two lucrative takeover proposals in January and May.

Sirtex yesterday reported NPAT of $41.5 million, underlying EBITDA growth of 23.4% to $75.9 million and marginal improvement in cash flow, although product revenue dropped 6.6% with dose sales also falling 5.7%.

The CDH-CGP offer for Sirtex follows on from a $1.6 billion offer by US company Varian which led to Sirtex paying out a $15.8 million break fee to Varian in July, which was reimbursed by CDH-CGP.

Sirtex’s CEO said the previous Varian scheme and the ongoing CDH-CGP scheme had caused “uncertainty and distraction” with a shareholder meeting to vote on the CDH-CGP scheme on September 10.

Sirtex is among several other emerging shares who have doubled their value in 2018, with Nearmap Ltd (ASX: NEA) and Speciality Fashion Group (ASX: SFH) also on the list.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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