Swedish Orphan Biovitrum (SOBI SS) Sweden
Healthcare
Forensic Alpha’s proprietary machine intelligence performs a detailed forensic analysis of a company’s financial accounts. They continue to categorise SOBI as Very High Risk, with the number of red flags staying consistently high over the past 6 months. The areas of greatest concern are Accounting (including DPO hitting a new high in Q2, +24% Y/Y to 76 days) and Governance (the CEO’s bonus scheme is >50% weighted to revenue which is highly unusual and is likely to encourage a “growth at any cost” mentality; and concerns re. the independence of the Audit Committee members). Forensic Alpha has also identified issues with Earnings Quality, in particular relating to OCF.
Edition: 191
- 26 July, 2024