Apotex Health (APTX) is set to start trading next week after launching its $1B IPO that values the equity at ~$5B, or 7-9x last year’s EBITDA - in line with other generics manufacturers…

… who look well-positioned, with industry forecasts calling for an acceleration of growth in the back half of the decade…

… supported by a $300B patent cliff, aging population, and an effort by governments to reduce healthcare expenditures.

The category is steadily gaining share in Canada, making Apotex uniquely positioned - with the largest generic market share in the country…

… supporting long-term margin expansion alongside management’s aim to increase exposure towards brands and biosimilars over the next five years.

While there’s an overhang from SK Capital’s >57% stake, it’s an interesting story - let’s see how it trades.

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