Sian Capital Urges OPKO Health to Address Apparently Misleading 4Q’20 Guidance
Sian Capital, LLC (together with its affiliates, “Sian” or “we”), a
sizable stockholder of OPKO Health, Inc. (NASDAQ: OPK) (“OPKO” or
the “Company”), today announced that it sent a letter to the
Company’s Board of Directors (the “Board”) on December 18, 2020
regarding what we believe is the dubious 4Q’20 guidance provided by
management on October 29, 2020. Sian wants all analysts and
stockholders to be aware that we believe OPKO’s previously issued
guidance is misleading. We are calling on OPKO to confirm whether
it still stands by its projections or agrees with our estimates.
Please be advised that OPKO’s management will be
hosting one-on-one meetings with investors and presenting at the
39th Annual J.P. Morgan Healthcare Conference on Wednesday,
January 13th at 3:40 p.m.
Eastern. We encourage analysts and investors to review our
estimates against OPKO’s guidance and ask management whether it
stands by the Company’s 4Q’20 guidance. Given that we believe Sian
correctly predicted OPKO’s 3Q’20 financial results before they were
announced, we remain very confident that our current analysis of
OPKO’s 4Q’20 financials is accurate.
The below table outlines guidance OPKO provided
on its October 29, 2020 conference call compared to the
conservative guidance estimates Sian released on November 12, 2020.
Our analysis leads us to believe that OPKO under-guided 4Q’20
growth by 26.3%.
OPKO 4Q’20 Guidance
*OPKO's "COVID-19 testing guide" includes
Serology and PCR Tests.
The day after OPKO announced its projections,
the stock price dropped 20%. In stark contrast, OPKO’s stock price
increased 25% in the weeks after we released our 4Q’20 estimates on
November 12, 2020.
In our White Paper on OPKO’s fundamental value,
we refute OPKO’s guidance in detail and provide, in our view, a
more accurate guide using public data, the Company’s commentary,
public competitors, competitors in the supply chain, government
statistics and independent market analysis. We view OPKO’s 4Q’20
guidance as unfathomable and urge analysts and investors to ask
management today whether the Company:
- Disagrees with
our analysis and stands by its original 4Q’20 guidance, or
- Agrees with our
analysis and admits its original 4Q’20 guidance was incorrect.
In closing, Sian remains open and willing to
engage with OPKO regarding its ideas for high-potential
opportunities in the marketplace. Unfortunately, it seems
management is no longer interested in engaging with us after
ignoring our latest attempts to try to work collaboratively to
drive stockholder value. We find it troubling that management would
seemingly rather spend investor resources fighting one of its
largest stockholders instead of resuming productive discussions
For those interested in learning more about the
value opportunity at OPKO, visit www.SianCapital.com/Resources. We
have provided Sian’s projected 2021 guidance for the Company.
Despite recent events, we remain encouraged by the numerous growth
prospects for OPKO and its stockholders in 2021.
About Sian Capital
Founded by veteran portfolio manager Anish
Monga, Sian Capital, LLC is a New York-based asset management firm
that employs a focused, event-driven investment approach. Sian’s
unique mix of cross-sector experience and activism expertise
enables it to identify and invest in what are often overlooked or
under-covered investment opportunities.
ProfileGreg Marose / Charlotte
Kiaiegmarose@profileadvisors.com / email@example.com