Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>Legal and regulatory changes have spawned cannabis companies, focused on cannabis-based medical and recreational products and the development of new breeds of crop </li>
<li>In Cannabis innovations <a href="https://www.smartkarma.com/entities/philip-morris-international" target="_blank" data-smartkarma-citation="entities:13328:1" rel="noopener">Philip Morris International (PM US)</a>, <a href="https://www.smartkarma.com/entities/canopy-growth-corp" target="_blank" data-smartkarma-citation="entities:25083:1" rel="noopener">Canopy Growth (WEED CN)</a>, <a href="https://www.smartkarma.com/entities/jazz-pharmaceuticals-plc" target="_blank" data-smartkarma-citation="entities:15881:1" rel="noopener">Jazz Pharmaceuticals (JAZZ US)</a><a href="https://www.smartkarma.com/entities/merck-co-inc" target="_blank" data-smartkarma-citation="entities:1130:1" rel="noopener">Merck &amp; Co Inc. (MRK US)</a> and <a href="https://www.smartkarma.com/entities/takeda-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:11747:1" rel="noopener">Takeda Pharmaceutical (4502 JP)</a> lead</li>
<li>In overall plant-based extracts innovations <a href="https://www.smartkarma.com/entities/jazz-pharmaceuticals-plc" target="_blank" data-smartkarma-citation="entities:15881:1" rel="noopener">Jazz Pharmaceuticals (JAZZ US)</a>, <a href="https://www.smartkarma.com/entities/eid-parry-india-ltd" target="_blank" data-smartkarma-citation="entities:6925:1" rel="noopener">Eid Parry India (EID IN)</a>, <a href="https://www.smartkarma.com/entities/abbott-laboratories" target="_blank" data-smartkarma-citation="entities:11987:1" rel="noopener">Abbott Laboratories (ABT US), </a>Indena, Mars Incorporated, and Liveleaf are the leaders.</li>
</ul>


Legal and regulatory changes have spawned cannabis companies, focused on cannabis-based medical and recreational products and the development of new breeds of crop 
In Cannabis innovations Philip Morris International (PM US), Canopy Growth (WEED CN), Jazz Pharmaceuticals (JAZZ US)Merck &amp; Co Inc. (MRK US) and Takeda Pharmaceutical (4502 JP) lead
In overall plant-based extracts innovations Jazz Pharmaceuticals (JAZZ US), Eid Parry India (EID IN), Abbott Laboratories (ABT US), Indena, Mars Incorporated, and Liveleaf are the leaders.


Insights from Data Mining Technical Publications - Plant Extracts Including from Cannabis

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

<ul><li>Merck delivered a remarkable financial execution in the third quarter which is expected to continue in the upcoming result.</li><li>The management has also continued to implement their commercial development strategy, including the recently announced acquisition of Acceleron Pharma.</li><li>Overall, Merck remains well-positioned in its financial and operational potency and we give it an ‘Outperform’ rating with a revised target price.</li></ul>

Merck delivered a remarkable financial execution in the third quarter which is expected to continue in the upcoming result.The management has also continued to implement their commercial development strategy, including the recently announced acquisition of Acceleron Pharma.Overall, Merck remains well-positioned in its financial and operational potency and we give it an ‘Outperform’ rating with a revised target price.

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>Chugai’s in-house drug, Actemra is recommended by the WHO for the treatment of hospitalized COVID-19 patients. In-licensed drug Ronapreve is approved for the treatment of mild to moderate COVID-19 patients.</li>
<li>Actemra and Ronapreve together are expected to contribute 29% of total revenue in 2021. Approval of oral COVID-19 anti-viral pill will pressurize both the drugs in 2022 and beyond.</li>
<li>Chugai’s recently in-licensed gene therapy drug candidate for Duchenne muscular dystrophy will have to compete with existing drug and other pipeline candidates in Japan.  </li>
</ul>


Chugai’s in-house drug, Actemra is recommended by the WHO for the treatment of hospitalized COVID-19 patients. In-licensed drug Ronapreve is approved for the treatment of mild to moderate COVID-19 patients.
Actemra and Ronapreve together are expected to contribute 29% of total revenue in 2021. Approval of oral COVID-19 anti-viral pill will pressurize both the drugs in 2022 and beyond.
Chugai’s recently in-licensed gene therapy drug candidate for Duchenne muscular dystrophy will have to compete with existing drug and other pipeline candidates in Japan.  


Chugai Pharmaceutical (4519 JP): Actemra Loses Its Sheen on Arrival of Oral COVID-19 Pill

<ul><li>Merck delivered a strong result with meaningful revenue growth in the second quarter, driven by strong underlying demand for products across their growth pillars and the continued recovery of the business due to improved patient access.</li><li>The company’s sales of its core Keytruda drug increased by 20% to $4.2 billion in oncology, reflecting continued strong global demand.</li><li>The company has a strong upside from Keytruda growth, animal medication growth, and of course, the huge prospects of the Molnupiravir medication against the Covid-19 that is already in Phase 3 trials.</li></ul>

Merck delivered a strong result with meaningful revenue growth in the second quarter, driven by strong underlying demand for products across their growth pillars and the continued recovery of the business due to improved patient access.The company’s sales of its core Keytruda drug increased by 20% to $4.2 billion in oncology, reflecting continued strong global demand.The company has a strong upside from Keytruda growth, animal medication growth, and of course, the huge prospects of the Molnupiravir medication against the Covid-19 that is already in Phase 3 trials.

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<ul>
<li>On 16<sup>th</sup> April 2020, Bloomberg reported that Gilead Sciences is considering acquiring a significant stake in Arcus Biosciences, a cancer therapeutics company backed by Alphabet Inc. (through its venture capital arm GV). We believe that the company’s interest lies in obtaining Arcus’ anti-TIGIT treatment, AB154 which is currently in phase 2 clinical trial for treating cancer.</li>
<li>Following the news release, Arcus’ shares jumped by around 89% to US$29.5 at the end of its trading on the 16<sup>th</sup>.</li>
<li>The deal could either be an equity purchase in Arcus or some other form of collaboration between the two companies. There is however no certainty of the deal and the talks could still fall apart.</li>
<li>The global immune-oncology market is expected to grow rapidly over the next couple of years driven by shifting demand for cell/immune based treatments from conventional chemotherapy drugs/treatments.</li>
<li>The demand for personalised treatments using genomic and immunity for oncology have been growing and the big pharma giants have been increasingly investing on small biotech firms with solid product pipelines to replenish their drug pipeline and earn high-returns.</li>
</ul>


On 16th April 2020, Bloomberg reported that Gilead Sciences is considering acquiring a significant stake in Arcus Biosciences, a cancer therapeutics company backed by Alphabet Inc. (through its venture capital arm GV). We believe that the company’s interest lies in obtaining Arcus’ anti-TIGIT treatment, AB154 which is currently in phase 2 clinical trial for treating cancer.
Following the news release, Arcus’ shares jumped by around 89% to US$29.5 at the end of its trading on the 16th.
The deal could either be an equity purchase in Arcus or some other form of collaboration between the two companies. There is however no certainty of the deal and the talks could still fall apart.
The global immune-oncology market is expected to grow rapidly over the next couple of years driven by shifting demand for cell/immune based treatments from conventional chemotherapy drugs/treatments.
The demand for personalised treatments using genomic and immunity for oncology have been growing and the big pharma giants have been increasingly investing on small biotech firms with solid product pipelines to replenish their drug pipeline and earn high-returns.


Gilead to Acquire a Stake in Arcus Biosciences; Offer May Come at a Large Premium

United States

Merck & Co., Inc. is a global health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures. The Company has operations in pharmaceutical, animal health, and consumer care.

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Merck & (MRK UN)

Insights from Data Mining Technical Publications - Plant Extracts Including from Cannabis

Herbal medicinal and nutraceutical extracts are seen as instruments to maintain health and treat some conditions. Cannabis, in particular, will see...

Pyari Menon

Merck & Co. Inc. - Investment Thesis

Merck delivered a remarkable financial execution in the third quarter which is expected to continue in the upcoming result. The management has...

Baptista Research

Chugai Pharmaceutical (4519 JP): Actemra Loses Its Sheen on Arrival of Oral COVID-19 Pill

Chugai's COVID-19 drugs do not seem to be stack up well against the newly approved oral COVID-19 drugs in 2022 and beyond. The company has already...

Tina Banerjee

Merck & Co. Inc. - Investment Thesis

Merck delivered a strong result with meaningful revenue growth in the second quarter, driven by strong underlying demand for products across their...

Baptista Research

Gilead to Acquire a Stake in Arcus Biosciences; Offer May Come at a Large Premium

On 16th April 2020, Bloomberg reported that Gilead Sciences is considering acquiring a significant stake in Arcus Biosciences, a cancer...

Shifara Samsudeen, ACMA, CGMA

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