J&J Kenvue IPO: KVUE starts trading on NYSE

GAAP Loss Per Share attributable to Bausch Health was ($0.11) for the fourth quarter and ($1.62) for the full year of 2023, compared with ($1.13) for the fourth quarter and ($0.62) for the full year of 2022. Although standards in the EU are generally more stringent, that doesn’t necessarily mean adherence to North American regulations such as the US Food and Drug Administration is easy. itrader review Regulatory compliance is often incredibly complex and in many cases a medical startup might not have the resources to manage it in multiple regions. It also helps that the Nordic countries consistently rank among the happiest places in the world. In other words, a happier and more educated population means more innovation — and more innovation means more ground-breaking technology.

Adjusted net income attributable to Bausch Health (non-GAAP) is Adjusted net income (non-GAAP) further adjusted to exclude the Adjusted net income attributable to noncontrolling interest (non-GAAP). Adjusted net income attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most hotforex broker review directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest. Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP).

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Thibaut Mongon, J&J’s executive vice president and worldwide chair of consumer health, will serve as CEO of the newly public company. One thing investors will like about the stock is that Kenvue stated in its prospectus that it expects to pay a quarterly cash dividend of $0.20 per share later this year. Assuming that is the case and the company pays every quarter, that would result in a yield of around 3.1% based on a share price of $26, which would be higher than the S&P 500 average of 1.7%.

In fact, Kenvue’s return on invested capital (ROIC) ranks nearly last among its competition. Kenvue (KVUE), the consumer health spin-off from Johnson & Johnson JNJ , is expected to start trading May 4, 2023 at a ~$40 billion valuation. We’ve always prioritized science as the core of how we provide care, and this will never change. From gently cleaning tiny fingers during a baby’s first bath to protecting the vitality of your skin to soothing aches and pains — our products deliver safe, effective, everyday care at every stage of life.

And Kenvue Is Geographically Diversified

At its expected valuation, KVUE looks fully valued and does not provide investors with much upside potential, as I’ll illustrate with my reverse discounted cash flow (DCF) model below. The one risk that concerns me the most is that investors still face potential liability related to talc-based products the company sold. That has been a big risk for Johnson & Johnson, and while the healthcare giant will be responsible for litigation related to products sold in Canada and the U.S., Kenvue will be on the hook for any such liabilities and litigation from other parts of the world. In 2022, sales of those products brought in $15 billion, and there isn’t much reason to believe that sales will increase significantly in the near term.

However, these measures and ratios are not prepared in accordance with GAAP nor do they have any standardized meaning under GAAP. In addition, other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently from the way we calculate such measures and ratios. Accordingly, our non-GAAP financial measures and ratios may not be comparable to such similarly titled non-GAAP financial measures and ratios used by other companies. We caution investors not to place undue reliance on such non-GAAP measures and ratios, but instead to consider them with the most directly comparable GAAP measures and ratios.

NON-GAAP FINANCIAL MEASURES This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered “non-GAAP” financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2023. Total reported revenues were $8.76 billion for the full year of 2023, compared with $8.12 billion in the full year of 2022, an increase of $633 million, or 8%. Excluding the unfavorable impact of foreign exchange of $45 million and the impact of acquisitions of $141 million, revenue increased organically 1 by 7% compared with the full year of 2022. In its prospectus, Kenvue says it holds “leadership positions” in the consumer health market, owning top brands in pain management (Tylenol), facial care (Neutrogena), mouthwash (Listerine), and many other categories.

1. In this scenario, Kenvue’s revenue would still grow to $19.7 billion in 2029, or 4% compounded annually.
2. We’ve always prioritized science as the core of how we provide care, and this will never change.
3. Management strongly encourages investors to review the company’s consolidated financial statements and publicly filed reports in their entirety.
4. This press release is neither an offer to sell nor a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
5. Segment revenues increased organically 1 by 2% for the fourth quarter and decreased 3% for the full year, compared with the fourth quarter and the full year of 2022.

Kenvue, however, doesn’t enjoy that same luxury — its cash and cash equivalents as of the end of 2022 total $1.2 billion. Plus, there are many more lawsuits that could arise in the future, so that’s a big unknown to be hanging over the business right from the start. In May 2023, Kenvue made our debut as a public company on the New York Stock Exchange, trading under the KVUE ticker symbol.

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With that in mind, a portfolio of disruptive technologies with very clear applications for patients and physicians is also a must. A savvy investor can take full advantage of this situation, and that’s precisely what Principal Technologies is doing. It plans to acquire proven healthcare investments in the lower-cost EU market, then bring them to North America. Lastly, although some investment firms have begun directing their attention to Europe, many startups in the region still lack the capital to take their technology to North America. While they would undeniably benefit from access to a new crop of potential investors, it’s generally more cost-effective to continue developing their technology. One of the most significant differences between the European and North American healthcare tech markets involves valuation.

Iconic brands, extraordinary teams

While it’s true that the company has decades of decent performance as a unit of Johnson & Johnson, part of the reason for the spinoff was to grant Kenvue more organizational leeway to focus on growth, as well as return capital to shareholders. Though there’s little reason to believe that it would fail to continue to do that now that it’s separate from J&J, management’s promises simply haven’t had enough time to be fulfilled. And, considering that J&J still owns 90% of the company, it’s questionable how much new organizational leeway it’ll actually have.

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The company’s commitment to innovation drives continuous improvement and advancement in its technology offerings. In 2023, Abbott Labs achieved a significant milestone with FDA approval for its leadless pacemaker system and announced the strategic acquisition of Bigfoot Biomedical, further bolstering its position as an industry leader. Key highlights from the report include strong growth across segments, with MedSurg witnessing an 11.1% year-over-year increase and cardiovascular sales climbing by 13.9%. Additionally, Boston Scientific provided optimistic guidance for the full year 2024, forecasting net sales growth of approximately 8.5% to 9.5% on a reported basis, along with adjusted earnings per share in the range of $2.23 to $2.27. Looking ahead, Medtronic shows promising potential for maintaining robust revenue growth while concurrently focusing on improving profitability. This dual approach underscores the company’s commitment to long-term shareholder value creation.

Despite a slight decrease in total sales in the third quarter of the year, Abbott Labs’ core operations exhibited robust performance, with organic sales excluding COVID-19 products recording a substantial year-over-year increase of 13.8%. In its most recent financial report released on January 31st, Boston Scientific demonstrated impressive performance, surpassing Wall Street estimates and driving a significant increase in its stock price. The company reported adjusted earnings per share of $0.55 on net sales of $3.725 billion, representing a robust 14.9% year-over-year growth.

Reliable fundamental data to provide unconflicted insights into the fundamentals and valuation of private and public businesses. When I use my reverse discounted cash flow (DCF) model to analyze the future cash flow expectations baked into KVUE, I find that shares, even at the midpoint, require optimistic assumptions about margins and growth, and look fully oanda review valued. In other words, it’s possible that this stock will not be as stable or its dividend as safe as Johnson & Johnson’s was over the long term, despite its favorable setup with lots of recurring revenue. Likewise, it may not be able to capture the alleged benefits of independence, because it might not end up being that independent in practice.