ConvaTec Focused on Turnaround to Reach Its Potential and Optimize Its Narrow Economic Moat

Since its initial public offering four years ago, ConvaTec has followed a familiar playbook to press its advantage in advanced wound care and enhance its ostomy business. By and large, we like ConvaTec’s businesses that focus on chronic care, which translates into an ongoing stream of revenue. However, the company has lagged significantly behind its key competitor, Coloplast. From our perspective, there is plenty of opportunity for ConvaTec to remedy the situation, but its ability to execute hinges greatly on new management.