Clinuvel

A net margin of 39.25 makes any crocodile happy to strike.

$CUV (-1.86%)
#stockanalysis
#portfoliofeedback

what do you think of this share? get in early and then go high? or hands off?

https://www.mallorcamagazin.com/nachrichten/wirtschaft/2023/07/22/113591/schweizer-biopharma-unternehmer-will-bis-2024-standort-auf-mallorca-schaffen.html

Hello dear GQ community,

I saw a great post the other day that this post ties into. (https://getqu.in/DPSDrc/). The post is about the actual country distribution in the depot, because as the author correctly described, an American company is not the same as the American market - Maybe the company generates most of its revenue in emerging markets and has the headquarters in the US only to be legally safe, and because of low taxation. You can read the rest in the original post.

My Single Stock Portfolio (Not yet complete, some stocks are still on the WL) consists of:

- Microsoft $MSFT (+0.34%)

- UnitedHealth $UNH (+0.91%)

- Clinuvel $CUV (-1.86%)

- German Post $DPW (+0.61%)

- UPS $UPS (+0.73%)

Now let's look at the distribution of sales in relation to the world:

- Microsoft (USA: 50% / Other Countries: 50%)

- UnitedHealth (USA: 97% / Other Countries: 3%)

- Clinuvel (Europe: 50% / USA: 40% / Switzerland: 10%)

- German Post (Europe: 29% / USA: 21% / Germany: 26% / Asia: 23%)

- UPS (USA: 76% / Europe: 12% / Other Countries: 12%)

Combined:

- 1st place: USA with 56.8%

- 2nd place: Europe with 18.2%

- 3rd place: Other countries with 13

- Place 4: Rest: 12%

You can see that the USA makes up the largest part of my investments. The USA is the largest economy on this planet with China and has a gigantic economy. But besides this flourishing economy, the country accumulates schools every year, which also have to be serviced at some point.

Conclusion: I will invest more in other markets: India and China are almost not represented in my portfolio - In this regard, I will certainly give an update.

Investment philosophy, "diversification" and dividends

Hi all, as this is my first slightly larger post I would generally appreciate some constructive feedback.

First something About Me

I'll be 22 in a month and I've been active in the stock market for about 2 years now. After a lot of back and forth, I can almost say that I have tried every strategy - but I never really felt comfortable. One learns from mistakes, and I have made many of them.

But what I have also done is to spend countless hours, days and weeks with books, videos, shareholder letters and internet research. I was particularly fascinated by the investment approaches of Terry Smith and the way of Joseph Carlson on Youtube.

My goal quickly became clear, I don't want to have thousands of companies in my portfolio that I don't know, understand or fully support. So an ETF focus was off the table.

Thereupon I built my own investment philosophy, which I would like to present to you in the following.

If you want to know more about me and my goals, there might be another article with a portfolio presentation soon :-)

First I would like to explain to you why I do not believe in diversification hold:

A quote from Warren Buffet is well known: "Diversification is protection against ignorance. It makes little sense if you know what you are doing."

However, a quote from one of the world's best investors alone is unlikely to convince everyone. Studies also support Buffet's view. The advantages of diversification decrease very fast and the gap between market risk and total portfolio becomes minimal from a portfolio size of 20-25 companies - 25 companies give you all the advantages of diversification, more positions only worsen your performance and overview. (Figure 1)

Because concentration delivers better performance. Fund managers who concentrate their knowledge in a few companies deliver better results than more diversified managers. (Figure 2)

Investment philosophy

I want to outperform the market, so I look for the best companies. What makes good companies?

Companies with competitive advantages (moats) outperform the market (Figure 3), and they do so because they have high returns on capital. My first metric for evaluating quality of a company and with a high value in my company analysis is ROIC (Return on Capital Invested). I look for companies with at least 10% ROIC. (Figure 4) Furthermore I want high ROCE (Return on capital employed) and high ROA (Return on Assets) figures.

This directly eliminates some companies and also whole sectors, namely exactly those in which it is not worth to invest anyway. Why is this so?

There are sectors that historically outperform the market (Software, Consumer, Healthcare) - on which my focus is -, and sectors that consistently underperform and are not considered in my investment approach (Banking, Energy, Insurance, Mining, Utilities, Airlines) - just compare the sectors with the main index ;-)

Consumer goods, healthcare and software companies perform better because they generate sustained profits, so they remain profitable even during economic downturns. This allows for consistently high returns on capital.

Next, a look at the margin here I would like to see high Gross Margins >60%, which are also a good indicator of a competitive advantage, and a high Profit Margin, which is an indicator of the efficiency of a company's value creation. However, the most important margin for assessing profitability is the FCF margin.

A company's focus should be maximally on Free Cash Flow, we should invest in companies that are as profitable as possible. In the long run, the share price follows the Fcf/Share.

Beyond that I don't want any debt, any company with Debt/EBITDA > 3 flies right out, preferably anything less than 2.

In terms of growth, I look for stable and good EPS and revenue growth, but FCF growth has the highest priority.

The higher the better, the more important the key performance indicators are.

My minimum benchmarks for the most important metrics:

• ROIC > 15%, ROCE > 15-0%
• Gross Margin > 60%
• Profit Margin > 20%
• FCF Margin > 20%
• Debt / EBITDA < 3, preferably < 1
• FCF 5Y CAGR > 10-15%

(Not all of my companies always meet every metric, but I have built my own score where a minimum score must be met and by score I set the "Conviction" to a company).

Buy & Hold and long-term investing outperforms

As long as a company continues to reinvest its capital at high returns there is no reason to sell. (Figure 5)

What about dividends?

Some of my companies pay a dividend, others don't - I don't put much emphasis on dividends, and will definitely not put bad companies in my portfolio just to get a payout in a given month ;) Dividends should be minimized if capital can be reinvested at high rates of return. At my young age and with a long term investment horizon the focus should be on yield, in old age I will also shift to dividends ;)

The most important thing to conclude: Invest in profitable companies that you UNDERSTAND

A few final tips:

• Don't chase trends, they fade away
• Do not be blinded by dividends
• Don't care about macroeconomics, invest in companies - not cycles
• Market timing is impossible
• Look for established companies, not one-hit wonders
• BUY GOOD COMPANIES - DON'T OVERPAY - DO NOTHING (Terry Smith)

My current investable universe:

$ADBE (+0.58%)
$NVO (+1.33%)
$CUV (-1.86%)
$CDNS (+0.1%)
$ASML (+0.07%)
$VRTX (+0.6%)
$V (+0.52%)
$MA (+1.09%)
$MSFT (+0.34%)
$QLYS (+0.33%)
$MKTX (+0.26%)
$KLAC (+0.44%)
$GOOGL (+0.37%)
$REG1V (-1.83%)
$TNE (+3.79%)
$ENX (+0%)
$EW (+0.42%)
$VRSN (+0.31%)
$FICO (+0.99%)
$FTNT (+0.59%)
$NEM (+1.24%)
$MONC (-0.15%)
$CSU (+2.05%)
$6861 (+0.07%)
$ENGH (+0%)
$MC (+0.86%)
$AAPL (+0.63%)
$6857 (+1.8%)
$7741 (-0.23%)
$PAYX (+1.05%)
$MTD (+1.44%)
$TXN (+0.49%)
$OR (+1.11%)
$ZTS (+0.47%) (Companies I watch, in my portfolio I have only 8 of them).

That's it from me for now. Please leave me some feedback and share the post if you like it :-)

What would you like to hear from me next? More about free cash flow? Portfolio presentation? Company presentation? My slightly different valuation approach, far away from P/E?

Some of the illustrations are from a slightly smaller fund ("Long Equity Investing" on Twitter - can only recommend you) or from Terry Smith's Shareholder Letter.

No investment advice

++News at Clinuvel: Why 30% return in one month?!++ $CUV (-1.86%)

Servus dear GQ-Community, from my side came no longer longer posts, because the Abitur is slowly approaching...

Those who follow my posts regularly know that I am a shareholder of Clinuvel Pharmaceutical, and have already written a share presentation about the Australian smallcap. Authored. Here it is again for your perusal:

https://app.getquin.com/activity/aHswuVFNaJ?lang=de&utm_source=sharing

https://app.getquin.com/activity/aHswuVFNaJ?lang=de&utm_source=sharing

I was asked if I could write an update on the position, as quite a bit has happened around the stock. Below are two factors that have had a possible effect on the price of the stock:

Insider selling at Clinuvel:

As written earlier, Clinuvel is a small cap. When investing in such a "small" company, what matters most to me, besides the balance sheet, is the management. If the management holds large stakes in the company in addition to a good balance sheet, I am interested.

From the point where the management sells the shares in large volumes, one should be vigilant with small companies, because no one knows the company as well as the bosses. But you can't let bad news destroy your investment case, because you never know all the information. So that you are all informed, I will now give you an overview:

Shareholder structure: (If the table is not displayed, please check the charts)

Willem A. Blijdorp

Chairman

70

2019

Brenda Mary Shanahan

Independent Non-Executive Director

-

2007

Karen Agersborg, Dr.

Independent Non-Executive Director

-

2018

Philippe Jacques Wolgen, Dr.

Chief Executive Officer, MD &amp; Director

59

2005

Susan Smith

Vice Chairman

-

-

Jeffrey Rosenfeld

Non-Executive Director

-

2019

John Andrew Likierman, Dr.

Non-Executive Director

79

2022

Those involved in insider transactions in the last 24 months were: Brenda Shanahan, Jeffrey Rosenfeld and Philippe Wolgen.

Transaction totals are as follows:

Insider sales: Jeffrey Rosenfeld (A$20,730.12) and Philippe Wolgen (A$16,143.00). Total 5,161,659.65 shares

Insider buying: Brenda Shanahan (A$628,250.00) and Philippe Wolgen (A$4,259,344.65). Total: 198,306 shares

Why the insiders sold shares, only they know. As an outsider, I would not like to speculate. What is unmistakable is the high amount of sales compared to purchases. My approach: I will follow the transactions closely and then weigh them. If more insiders sell large amounts of shares, I may sell part of my position at a good profit.

Agreement on drug distribution with health insurers:

2022 has already been written:

"Clinuvel Pharmaceuticals Limited announced that it has entered into a second agreement with the GKV-Spitzenverband (GKV-SV) for the ongoing treatment and reimbursement of SCENESSE® (afamelanotide 16mg) in adult patients with erythropoietic protoporphyria (EPP). SCENESSE® is the only approved treatment for adult EPP patients in Europe."

This was a dispute between German health insurers and CUV. After an initial losing round for Clinuvel, an agreement has now been reached between the German health insurers and CUV. The settlement was already agreed last year, and has little relevance to the current share price. Some speculate that Clinuvel may be negotiating with other health insurers on the distribution of the drugs. However, I have no credible information not found.

Sources:

Insider sales at CUV:

1. https://simplywall.st/stocks/au/pharmaceuticals-biotech/asx-cuv/clinuvel-pharmaceuticals-shares/news/possible-signal-as-clinuvel-pharmaceuticals-insiders-sell-au

2. https://www.marketbeat.com/stocks/ASX/CUV/insider-trades/

Agreement on drug sales with health insurers:

1. https://de.marketscreener.com/kurs/aktie/CLINUVEL-PHARMACEUTICALS-6492603/news/Clinuvel-Pharmaceuticals-Limited-schlie-t-zweiten-Vertrag-mit-dem-Spitzenverband-der-Gesetzlichen-Kr-37623951/

@mariechristines

#update
#health
#clinuvel
#aktien
#getquin
#geld

So, after half a year I would like to introduce myself. (Based on the template of @DonkeyInvestor )

First of all, who am I?

I'm Phil, 18 years old and I traded on the stock market for the first time in the summer of 2022 with my 18th birthday. In the run-up I have dealt a lot with ETFs and the associated savings plans. In the meantime I also find individual stocks very interesting and have already started to analyze and evaluate some companies (thanks for that to @TheAccountant89 ).

I am currently still at high school, but will start a shortened apprenticeship as a mechatronics engineer in September.

Investment horizon and goals:

I don't really have a goal, I just want to put my money away now so that I have something in my pocket at the latest when I retire. Possibly, I will then switch to dividend ETFs.

My strategy:

I try to follow the "Core Satelite". In my core I have an MSCI World (act. 53%, target 60%), MSCI EM (act. 20%, target 25) and an MSCI Europe Small Caps (act. 23, target 15%).

The Europe Small Cap is currently weighted so high because I expect continued growth in Europe and thus can hopefully make more returns.

I would like to keep my satellites at 20-30% relative to the core. What do you guys think? What ratio would be appropriate?

To my individual stocksI follow value investing:

Apple, Microsoft, Alphabet, Carl Zeiss ($AFX (+1.56%) ), Tesla, Amazon, HIMS &amp; HERS ($HIMS (+0.22%) ), Clinuvel ($CUV (-1.86%) ), Shoprite ($SRGHY ) and Disney

plus: Berkshire, Paypal, Alfen ($ALFEN (-1.14%) ) and Allianz

The goal here is to weight them all equally. The first 6 are a fixed part of my portfolio and the market. Disney is currently a shaky candidate, but as long as it runs well they remain in it. $HIMS (+0.22%) , $CUV (-1.86%) and $SRGHY are my growth stocks and will be followed further.

I also have a few silver coins at home rumliegen🤷🏽‍♂️

As long as everything goes pretty well fits es👍🏼

expansion:

As already written above, 4 more stocks are to be added. For new titles I am always open as long as it is in my Circle of Competence. Possibly P&amp;G or LMVH will be added.

Absolute values:

Currently I have 13k invested ( -6.6%) and of that 75% in core and 25% in individual stocks.

Hope you liked my introduction. Looking forward to a long time at getquin. Will give some more thought to my contributions in the future.$

+++ Stock analysis of Clinuvel Pharmaceutical: +++

$CUV (-1.86%)
Pharmacy of the future?

Outline of the article:

1. introduction

2. how did I come across the share?

3. company analysis including company history

4. financial ratios

5. who is invested?

6. current problems/opportunities

7. dividend

8. moat analysis

9. my opinion on the share

1. introduction

Today there is again a small stock analysis as a Getquin contribution. Today's analysis is dedicated to a very exciting pharmaceutical company that might just be at the beginning of its career.

First of all: Out of bias I disclose that I am invested in Clinuvel. This article is only meant to give you a closer look at this (still) small company.

As it has always been the case with my stock analyses so far, I introduce the analysis with a little joke.

Doctor: "So, Mr. Meier, you are drunk again, didn't I tell you only one bottle of beer per day?"

Meier: "Yes, do you actually think you are the only doctor I go to!

Source: https://witze.net/arzt-witze

(Since I did not use any pictures/graphs in the last stock analysis (Deutsche Post), I would like to use them in this post).

2. how did I come across the share?

Very few people know that I am a fan of Florian Homm. I like to read his books, as I am fascinated by his career and appreciate his analytical skills. (I am aware that Florian Homm is a bit of a crash prophet :)). Through his biography "Head Money Hunting", I first came in contact with the stock market, I was then a 16-year-old boy who dreamed of getting rich quick, and doing little for it. Today I am smarter. Already in his biography Homm mentioned his success with the then penny stock Clinuvel, which has increased more than tenfold due to him as an activist hedge fund manager. (Not verified). Homm also devotes special consideration to Clinuvel in other books, and special YouTube videos. If a legendary hedge fund manager thinks so highly of a small Australian company, there must be something to it - right? That's an easy question to answer at the end of this post.

Sources: Book:

- The Principles of Wealth; Moritz Hessel and Florian Homm; Finanzbuchverlag.

- Book: Head Money Hunting; Florian Homm

3. company analysis including company history

Clinuvel Pharmaceutical is a specialized pharmaceutical company that develops drugs for genetic, metabolic (metabolic), life-threatening and common diseases. The drugs are mainly marketed to industrialized countries. The geographic distribution of sales is dominated by Europe and the USA (89%). 11% of sales come from Switzerland and other countries. The company was founded in 1987 by specialist researchers who set out to find a drug for EPP (skin disease). Then, in 2006, the first studies were conducted until Europe (2014) and the U.S. (2019) gave their permission to market the drug. In 2020, Clinuvel announced that a new drug (Prenumbra) was in development.

On the company's website, it is written that Clinuvel is a specialty pharmaceutical company whose goal is to serve the open needs of patients. It is further written that Clinuvel is particularly interested in diseases for which there are currently no alternatives. For investors, this strategy is worth its weight in gold, because health insurance companies/individuals are forced to pay high prices for medicines without substitutes. Because health is important to everyone. (No valuation of this strategy from my side).

Sources:

- https://www.worldofvalue.de/beitrag/clinuvel-pharmaceuticals-211210

- CLINUVEL PHARMACEUTICALS LIMITED : Aktionäre Vorstände Geschäftsführer und Unternehmensprofil | A0JEGY | AU000000CUV3 | MarketScreener

4. financial ratios

As I mentioned earlier, I am invested in Clinuvel. The decision to buy the stock was influenced by the company's very strong financials. Why I am so convinced about the company, you can see now:

Before I put a company in my portfolio, I first look at the financial stability, so especially the debt, etc., to make sure that my investment will not go bust. Clinuvel's debt is low, as the company has a debt-to-equity ratio of 14%. For comparison, the pharmaceutical giant John Sohn and John Sohn has a debt to equity ratio of 145%.

Source: Own representation: Calculated with data from www.yahoo.finance.com

Clinuvel also shines when it comes to gearing. The definition of gearing is as follows: "Das Gearing is a measure of the financial Hebelwirkung of the company , showing the degree to which a company's activities are financed by shareholders' funds compared to creditors' funds." A good gearing is close to zero or tends to negative. In the case of Clinuvel Pharmaceuticals, gearing has been consistently between -70 to -85 for the past 4 years, showing that the company is liquid even in the current times, and is not in danger of filing for bankruptcy. Most people have noticed that key interest rates around the world are being raised in order to fight inflation. Accordingly, interest coverage is important for a company. By calculating interest coverage, you can see whether a company can easily or heavily repay its debts. Clinuvel has no problems here either. The interest cover in 2022 is 141 times. By comparison, Deutsche Post has "only" an interest cover of 13.8 (2022).

Sources:

- https://www.investopedia.com/terms/g/gearingratio.asp

- Calculation: Own presentation

In addition to financial stability, the profitability of a company is of course also important. Based on gross profit margin and operating profit margin, one can quickly see whether a company is doing well or poorly. Both key figures are excellent at Clinuvel. The gross profit margin varies between 90% and 84% (surveyed period: 2020-2022). The operating profit margin is also convincing with a solid value of 55% (2021). The fact that Clinuvel has such high margins can be attributed to its business model. This is because Clinuvel, as a pharmaceutical company, only has to raise large sums for research and approval. After the drugs have been approved by the EFSA and the FDA, the sale of the drugs generates "passive income." This is because Clinuvel only needs to have the drugs mass produced and distributed. By producing drugs for rare diseases for which there is no second cure on the market, Clinuvel leaves health insurers no choice but to pay whatever price CUV deems appropriate.

The return on invested equity is also noteworthy. This describes the return one receives on one's invested capital. (Roe). The Roe was 35% in 2021 and 28% in 2022.

In order to buy a company as cheaply as possible, one must pay attention to a wide variety of valuation ratios. These help to understand, based on historical data, whether a company is currently cheap to buy.

Three important ratios are enterprise value/EBIT; EV/EBITDA and EV/Sales. If these ratios are low and the company has no fundamental reasons to depreciate in value, a low value may indicate a buying opportunity.

The above valuation ratios have been falling for the past three years at Clinuvel. It is important to note that Clinuvel was a hype stock that traded too high. At its all-time high, Clinuvel was a popular stock for short-sellers who made a lot of money by penalizing the stock. Due to the fact that the ratios are now at a fair value, I decided to buy the stock.

According to forecasts, the share's price-to-book value and cash flow should increase steadily in the coming years. This suggests that the stock is now growing steadily and slowly as CUV increases its sales of existing drugs and as new drugs come to market.

5. who is invested?

Control is good, trust is better! This proverb can also be applied well to the stock market. CEOs have control over the companies you invest in and accordingly have more accurate insights into what is going on with the companies. Therefore, I like to see the CEO speak positively about the future about a company. However, it is better when the boss underlines the vote of confidence with an insider buy. This is the case with Clinuvel, because the main shareholders are:

1. Dr. Wolgen (CEO; 6.3%)

2. Ender 1 GmbH (5.2%)

3. Dr. Bljord (Chairman of Clinuvel; 3.5%)

4. Bedcock (2.4%)

5. Vanguard (2%)

Based on the major shareholder structure, you can see that the CEO and Chairman of the company have invested a lot of money in the company. To me, this is an extremely positive signal for the future. Moreover, Dr. Wolgen writes in the annual report to the shareholders that they are very important to him and he is positive about the future of the company. He also notes that short-sellers will only be interested in CUV in the short term, and that's why you shouldn't sell your shares.

Source:

- CLINUVEL PHARMACEUTICALS LIMITED : Aktionäre Vorstandsmitglieder Manager und Unternehmensprofil | AU000000CUV3 | MarketScreener

- www.DATAROMA.com

- Annual report (2021)

6. current problems & opportunities

To understand risks and opportunities at Clinuvel, one must take a closer look at the company's business. I will now take a closer look at the drugs and their processes. Since I myself am not a medical specialist, and I do not want to do that to you, I will try to explain everything simply.

All mentioned information can be found on Willkommen bei CLINUVEL - Clinuvel findable.

1. The DNA repair program

The program targets skin cancer caused by ultraviolet radiation by causing DNA damage. The target group of the drug SCENESEE, are people suffering from Xeronderma pigmentosum. This is a congenital disease that prevents DNA repair. As a result, those affected must avoid the sun, as the UV radiation will otherwise lead to aggressive skin cancer. The mortality rate of the disease is high, and the life expectancy is 30 years. It is estimated that 1 person in 450,000 people in Europe suffers from the disease.

The solution:

Clinuvel's drug aims to increase DNA repair capacity and alleviate the consequences of regular tumor removal. Currently, the drug has been successfully tested and approved in phase 1,2,3. The latest news was that it is now being tested on adolescents for efficacy. If this trial is successful, the lives of affected children will improve significantly.

"SCENESSE (afamelanotide 16mg) is approved in the European Union as an orphan drug for the prevention of phototoxicity in adult patients with erythropoietic protoporphyria (EPP). SCENESSE is approved in the United States to increase "pain-free" light exposure in adult EPP patients with a history of phototoxicity. Information about the product can be found on CLINUVEL's website at. www.clinuvel.com"

2. Arterial Ischemic Stroke

A stroke occurs when important blood vessels (carry oxygen and nutrients) become blocked by clots. As a result, the brain suffers from a lack of oxygen and is damaged. Current methods involve chemically dissolving the clot or physically removing it. Nevertheless, these methods are quite ineffective because treatment must happen quickly after the stroke. Because treatment is often not given quickly enough, the stroke is usually fatal or ends in permanent disability. Every year, about 15 million people suffer a stroke. 5.5 million do not survive it. 50% of the survivors suffer from a permanent disability afterwards. Dementia is also often a consequence of strokes.

Solution:

Clinuvel is currently researching a drug that will restore a stroke patient's neurological and muscular functions. This happens by improving blood flow to the brain. Clinuvel focuses primarily on patients who cannot be treated by conventional methods because the affected area of the brain cannot be reached. Dr. Bilbao of Clinuvel states the goal is that 70-80% of stroke patients who are not helped by conventional treatments will benefit from the New Method.

The new drug is called afamelanotide, and has the advantage of acting as a powerful antioxidant hormone. So the patient's brain is protected by reduced fluid formation and restoration of the blood-brain barrier.

Personally, I am extremely grateful about the research of doctors on this subject, and hope that this method will be used in the future, and many lives will be saved.

3. Light protection through pigmentation

Everyone should know that the contact between skin and the sun's UV rays is not good. This is because this contact causes sunburns, DNA damage (skin cancer) and photoaging. People with lighter skin (Europeans, etc.) are generally more affected by these consequences.

Solution:

Clinuvel is developing melatonin medication, is responsible for tanning the skin, to reduce these consequences. Implanted melatonin makes it possible to tan without UV rays. As a result, the skin does not react so violently to the UV rays. Side effect: people with white spots on their skin are enabled to balance their skin color.

Now to the evaluation of chances and risks:

The opportunities for the pharmaceutical company are obvious. Through the successful approval of the drugs, new sources of money are gained, which incidentally can save millions of people. Personally, I find all the tested methods and drugs more than sensible and almost revolutionary. With the approval of the health authorities, a global expansion can then take place, which can make the company and the shareholders rich.

The risks, on the other hand, are that the company will not get the approvals and the funds spent will have been "wasted". There is also the risk that Clinuvel will be acquired by a larger pharmaceutical company. The company has a current market capitalization of 600 million.

Sources: Pharmazeutische Technologie - Clinuvel

For me personally, the opportunities outweigh the risks, which is why I am a shareholder in the company.

7. the dividend

The company's current dividend yield is 0.22% ($0.04). Based on the last dividends, you can see that the company has increased the dividend every year. On average, 60-70% per year. The financial situation suggests that the company can easily sustain the dividend and there is clearly room for increase. But I feel comfortable with the low dividend, as the funds should rather be spent on future drugs and research.

Source: https://www.marketscreener.com/quote/stock/CLINUVEL-PHARMACEUTICALS

8th Moat Analysis

A company without a strong moat is weak against its competitors. Therefore, a company's moat must be examined.

1. intangible assets

Clinuvel has strong patents in addition to real estate (research laboratories). These patents are unique and the drugs have no serious competitors: PRICING POWER. Licenses and registrations also belong to Clinuvel

2. switching costs

As Clinuvel is mainly active in the USA/Europe and Switzerland, the company earns "strong" currencies. Exchange costs are therefore rather low. (May come with expansion into third countries).

3. network effect

Pharmaceutical companies like Clinuvel have a strong network effect, because the value of the products increases with demand. With pricing power and a high chance of scaling, there is a high chance that Clinuvel can benefit from a network effect.

4. cost advantages

Based on the high profit margins, one can see that the company is very profitable. These profit margins are easily scalable and grow with production. The chance that many pharmaceutical companies will invest in the same methods to produce their own product in the future is low, otherwise the profit margins of both sides will be very reduced.

5. good management

The point: who is invested clearly shows that the company management is very competent, and have strong confidence in the company. In addition, the CEO continues to strive to expand the company's drug portfolio. In my opinion, the management is very good!

6. geographical differences

Australian companies have no disadvantages compared to European/ American companies.

7. minimum efficient size

This is where top dog Clinuvel scores, as there are few competitors in the segment: melatonin, stroke drugs and DNA repair program. People depend on these drugs, and they don't care where it comes from - it has to work.

8. dependence on suppliers

Clinuvel has companies manufacture the drugs for them. If one supplier can't deliver/produce, another is found (time lost). But no direct dependence. Secured products through patents.

Lastly, a classification from me. I am fundamentally and ethically convinced of Clinuvel. The company produces helpful medicine and can market it profitably. I am invested, and will continue to invest if progress is good. There is also a chance that larger funds can list the stock. The current problem is that large funds like BlackRock or Vanguard are only allowed to invest minimally in Clinuvel, otherwise price manipulation could occur. I don't know the exact market capitalization at which large asset managers will be allowed to invest in large amounts, but I suspect it to be more than 1.5 billion.

I see Clinuvel in good hands in the future and I am a happy shareholder :)

And as always:

IMPORTANT: As with the last analysis, PLEASE give me some constructive feedback. Info you are missing or suggestions for improvement will be greatly appreciated. And another big thank you for all the positive feedback on the Deutsche Post analysis. Feel free to suggest a company in the comments that I should analyze next.

In this sense, have a relaxing weekend.

Image sources: www.clinuvel.com

Deposit transfer

Where are all the $CUV (-1.86%) -buys after Helmut wrote about it today?