Bell Potter says the departure of two healthcare analysts before Christmas will not lead to a watering down of its research business as one of Australia’s largest stockbrokers and financial advisers.
The firm that boasts $55 billion in funds under advice has suspended coverage of Atomo Diagnostics, Genetic Signatures, Immutep, Medical Developments, Opthea, Neuren, Starpharma, Pharmaxis and Pacific Smiles following the departure of veteran analyst Tanushree Jain in December for a research role at Petra Capital.
In October last year, another healthcare analyst, Elyse Shapiro, left for rival broker Canaccord Genuity. The companies Ms Shapiro covered, including Alcidion, PolyNovo, and Next Science, remain suspended from coverage.
Bell Potter’s head of research Chris Savage said it had hired Anubhav Saxena and Tara Speranza to replace the departed analysts. Bell Potter analyst John Hester remains with the business.
“It is Bell Potter policy to suspend coverage on a stock after an analyst leaves and for coverage to recommence once a new or different analyst publishes a transfer of coverage note,” a Bell Potter spokeswoman said. “Coverage on most or all of the stocks suspended will be recommenced by the three healthcare analysts over the next several months.”
As of Wednesday, Mr Hester is the only healthcare analyst listed on the firm’s research.
Under focus
Bell Potter’s role, earning fees for capital market services from companies it recommends to its large retail client base, has come under the spotlight after a couple of disastrous pandemic-era initial public offers.
It acted as lead manager on the $340 million float of protective equipment business CleanSpace in October 2020, which raised $131 million from investors at $4.41 a share.
However, a series of disappointing operating updates from CleanSpace have caused a 70 per cent plunge in shares, to $1.32 on Thursday.
According to a research note from February last year, Bell Potter had a $7.65 share price target and “buy” recommendation on Cleanspace. Coverage of CleanSpace is currently suspended.
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