NEW POSITION: A Rare Disease Compounder
A US-listed portfolio position, executing ahead of plan, with a freshly raised long-term vision.
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Every so often a small-cap operator quietly raises their long-term ambition by an order of magnitude.
Most of the time the market dismisses it as bravado. Sometimes, looking at the execution that came before it, the new ambition deserves to be taken seriously.
This one, I think, deserves to be taken seriously.
A US-listed small-cap with structural moats at the product level. A high-margin model. A management team that under-promises and over-delivers. A string of catalysts already hit and another string still queued.
In the last six months alone:
Their biggest pipeline asset received regulatory approval, with a meaningfully better outcome than the consensus had modelled
Gross margins expanded to 73%
The company turned GAAP profitable for the first time
The product portfolio grew through a disciplined, cash-funded acquisition with no dilution and no debt
Long-term targets were raised twice
Last month, management laid out a 10-year vision that, if even half-delivered, repositions the entire investment case
Last week I initiated a 5% position in the Schwar Capital portfolio.
Today’s company is…