Q: I note that you have trimmed WELL and are adding CPH. Can you provide a bit more color on CPH. There are few questions in your database and the most recent mention by you has it well down in a long list of companies with growth potential so it is curious to me how it made it to your most recent add list. Many thanks. I too have grown weary of WELL so the might be a good time to move on, to CPH? Thank you
5i Research Answer:
CPH has had some issues in the past, and its share price declined for almost five straight years between 2015 to 2020, all while a broader bull market took place. As a result, there is some general caution due to its past, but we also note that management has turned things around and momentum has been solid since 2021. In 2021 they made a deal with ANI Pharmaceuticals for Lipofen in the US, and struck better supply agreements with Sun Pharma. It improved its margins, acquired Natroba, and it has been conducting share buybacks. With a 1.5% position in the growth model portfolio, we want to see how management continues to execute, and we are willing to adjust our tune on the name despite its historical setbacks.