Medartis Holding AG (MED.SW) fair value

ACCE thesis

Medartis makes implants for hand, wrist, foot and ankle, shoulder, and cranio-maxillofacial trauma, sold mainly to surgeons who choose its plates and screws in the operating room. The moat is that surgeon familiarity and a broad, locked-in implant system make switching costs real, which is why gross margin sits at 77.5%. Revenue is growing 30.7%, and at 42.9 times forward earnings the market is still paying for that growth to convert into operating profit, which currently runs at an 8.9% margin. With a 5.8% ROE and a 76.4 trailing P/E, the margin gap between gross and operating profit is the central question for anyone looking closer. The stock is not in any index, so liquidity and coverage are thinner than the market cap suggests, which may create mispricing but also means the work needs to be done from primary sources.