Maybe it’s time to buy into Ascendis’s growth story
To date there are no clear symptoms that Ascendis has bought a lemon — but IM suspects the market was a tad spooked by recent international sports nutrition acquisition not performing to expectations
The share price of acquisitive health brands conglomerate Ascendis — which is well off a record high of R28.97 — might suggest an outbreak of investor scepticism. This is not entirely surprising. Companies that grow rapidly by acquisition are prone to bouts of investor doubt, simply because wizened market watchers know that sometimes one bad deal can quickly infect an entire organisation. To date there are no clear symptoms that Ascendis has bought a lemon — but IM suspects the market was a tad spooked by recent international sports nutrition acquisition not performing to expectations. But a recent investor update from Ascendis certainly suggests operations are hale and hearty, and that perhaps the market has not diagnosed prospects realistically. Reviewing the five months since close of the interim period to end December, Ascendis indicated that the Pharma-Med division was performing strongly, with further improvements expected.
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