Eisai. This pharmaceutical company has a long track record of profitable investment generating a strong return on equity and growing earnings per share. Its share price took a tumble recently following the announcement of its acquisition of MGI Pharma, a US biotech firm with a strong pipeline of anti-cancer drugs. The market appears to have reacted to concerns about the impact on earnings of goodwill amortisation. We do not believe this non-cash amortisation is of any relevance when valuing Eisai, thus the fall in its share price offered an attractive entry point.
| Sedol |
Type |
Price |
Date |
| 6307200 |
Buy |
JPY 3388.139 |
28/03/2008 |
|
