Otsuka Holdings Co., a Japanese pharmaceutical and healthcare company, is reportedly considering the sale of its shares in Shanghai-based medical device giant MicroPort Scientific Corp. (HKG: 0853), according to a Bloomberg report. The company is said to be working with financial advisors to assess its minority stake in MicroPort after receiving preliminary inquiries from potential buyers. As of June 30, 2024, Otsuka Holdings holds the largest share in MicroPort, with a 20.87% stake.
MicroPort’s stock has experienced a downward trend over the past three years, and the company has warned about its debt levels and the sustainability of its operations. In its latest interim report, MicroPort detailed efforts to bolster liquidity through cost-cutting measures, including reductions in research and development spending. Morgan Stanley has revised downward its earnings per share forecasts for MicroPort from 2027 to 2030 by 5-9%, reflecting a conservative outlook on the company’s growth and profit margins. Currently, MicroPort’s stock is trading at a historical low, but rumors of the potential share sale have sparked a temporary increase in its share price, with both MicroPort Scientific and its spin-off MicroPort MedBot seeing shares rise by more than 6% at one point.
The potential divestment by Otsuka Holdings could signal a significant shift in the ownership structure of MicroPort Scientific Corp., impacting the company’s future strategy and investor sentiment.- Flcube.com
