Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

While modern pharmacology has been able to produce new medicines to treat or manage most diseases, these drugs often cause unpredictable side effects, which sometimes lead to the development of secondary diseases, especially for chronic conditions. One possible alternative to the problem of sustained use of drugs is electro, radiation, and ultrasound therapy. 
In the area of electrotherapy, <a href="https://www.smartkarma.com/entities/medtronic-plc" target="_blank" data-smartkarma-citation="entities:14982:1" rel="noopener">Medtronic Plc (MDT US)</a> and <a href="https://www.smartkarma.com/entities/boston-scientific-corp" target="_blank" data-smartkarma-citation="entities:11115:1" rel="noopener">Boston Scientific (BSX US)</a> are the clear leaders by far, with dominance in the number of innovations, positive mentions, and impact of their innovations. However, with the increased use of electrotherapy for pain management and physiotherapy smaller players with unique products now compete in specific silos. Three small-cap names that screen well technologically are <a href="https://www.smartkarma.com/entities/nevro-corp" target="_blank" data-smartkarma-citation="entities:2218:1" rel="noopener">Nevro Corp (NVRO US)</a>, <a href="https://www.smartkarma.com/entities/nuvasive-inc" target="_blank" data-smartkarma-citation="entities:8384:1" rel="noopener">Nuvasive Inc (NUVA US)</a>, and <a href="https://www.smartkarma.com/entities/integer-holdings-corp" target="_blank" data-smartkarma-citation="entities:18313:1" rel="noopener">Greatbatch Inc (ITGR US)</a>.
In Radiotherapy <a href="https://www.smartkarma.com/entities/siemens-healthineers-ag" target="_blank" data-smartkarma-citation="entities:29221:1" rel="noopener">Siemens Healthineers AG (SHL GR)</a>  leads the field.  Surprisingly a private company Aerin Medical which provides treatment options for chronic nasal conditions and is a play on rising allergies and sleep apnoea comes in second
In Ultrasound therapy, <a href="https://www.smartkarma.com/entities/johnson-johnson" target="_blank" data-smartkarma-citation="entities:1132:1" rel="noopener">Johnson &amp; Johnson (JNJ US)</a> tops the list. A small-cap company <a href="https://www.smartkarma.com/entities/butterfly-network-inc" target="_blank" data-smartkarma-citation="entities:33050:1" rel="noopener">Butterfly Network Inc (BFLY US)</a> prima facie seems to have products that could potentially change the way ultrasound scans are performed as their technologies allow for use of small portable equipment in conjunction with a smartphone or tablet to create an ultrasound machine.

While modern pharmacology has been able to produce new medicines to treat or manage most diseases, these drugs often cause unpredictable side effects, which sometimes lead to the development of secondary diseases, especially for chronic conditions. One possible alternative to the problem of sustained use of drugs is electro, radiation, and ultrasound therapy. 
In the area of electrotherapy, Medtronic Plc (MDT US) and Boston Scientific (BSX US) are the clear leaders by far, with dominance in the number of innovations, positive mentions, and impact of their innovations. However, with the increased use of electrotherapy for pain management and physiotherapy smaller players with unique products now compete in specific silos. Three small-cap names that screen well technologically are Nevro Corp (NVRO US), Nuvasive Inc (NUVA US), and Greatbatch Inc (ITGR US).
In Radiotherapy Siemens Healthineers AG (SHL GR)  leads the field.  Surprisingly a private company Aerin Medical which provides treatment options for chronic nasal conditions and is a play on rising allergies and sleep apnoea comes in second
In Ultrasound therapy, Johnson &amp; Johnson (JNJ US) tops the list. A small-cap company Butterfly Network Inc (BFLY US) prima facie seems to have products that could potentially change the way ultrasound scans are performed as their technologies allow for use of small portable equipment in conjunction with a smartphone or tablet to create an ultrasound machine.

Stock Ideas Based on Data Mined from Technical Publications - Electro, Radio, & Ultrasound Therapies

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Another large healthcare sector deal less than a week from the last!On 2nd August 2020, medtech giant <a href="https://www.smartkarma.com/entities/siemens-healthineers-ag" target="_blank" data-smartkarma-citation="entities:29221:1" rel="noopener">Siemens Healthineers AG (SHL GR)</a> announced they would acquire US-based medical-devices maker <a href="https://www.smartkarma.com/entities/varian-medical-systems-inc" target="_blank" data-smartkarma-citation="entities:7308:1" rel="noopener">Varian Medical Systems (VAR US)</a> in an all-cash deal that valued the company at ~US$16.4bn. As at the time of announcement, this was the largest healthcare M&amp;A transaction to be announced in 2020. I covered this event in "<a href="https://www.smartkarma.com/insights/varian-siemens-deal-dax-promotion-on-the-cards-for-the-acquirer" target="_blank" data-smartkarma-citation="insights:41857" rel="noopener">Varian-Siemens Deal: DAX Promotion on the Cards for the Acquirer</a>". Just three days later, on 5th August 2020, virtual healthcare powerhouse <a href="https://www.smartkarma.com/entities/teladoc-health-inc" target="_blank" data-smartkarma-citation="entities:14233:1" rel="noopener">Teladoc Health, Inc. (TDOC US)</a> announced they will be acquiring chronic-illness health-tech company <a href="https://www.smartkarma.com/entities/livongo-health-inc" target="_blank" data-smartkarma-citation="entities:28714:1" rel="noopener">Livongo Health Inc (LVGO US)</a> in a cash and scrip deal that valued the company at a market cap of US$15.5bn (going by cash-equivalent numbers based on pre-announcement closing price for Teladoc). With the COVID-19 pandemic forcing consumers to look for substitutes for conventional in-person health care, virtual health care providers have seen demand for their services rise significantly in the last few months, and both stocks have rallied sharply. The Deal will be conditional on receiving Livongo and Teladoc Shareholder Approvals, U.S. antitrust clearance, and meeting other customary closing conditions.The Transaction is expected to close by the end of 2020. As always, there is more below the fold.

Another large healthcare sector deal less than a week from the last!On 2nd August 2020, medtech giant Siemens Healthineers AG (SHL GR) announced they would acquire US-based medical-devices maker Varian Medical Systems (VAR US) in an all-cash deal that valued the company at ~US$16.4bn. As at the time of announcement, this was the largest healthcare M&amp;A transaction to be announced in 2020. I covered this event in "Varian-Siemens Deal: DAX Promotion on the Cards for the Acquirer". Just three days later, on 5th August 2020, virtual healthcare powerhouse Teladoc Health, Inc. (TDOC US) announced they will be acquiring chronic-illness health-tech company Livongo Health Inc (LVGO US) in a cash and scrip deal that valued the company at a market cap of US$15.5bn (going by cash-equivalent numbers based on pre-announcement closing price for Teladoc). With the COVID-19 pandemic forcing consumers to look for substitutes for conventional in-person health care, virtual health care providers have seen demand for their services rise significantly in the last few months, and both stocks have rallied sharply. The Deal will be conditional on receiving Livongo and Teladoc Shareholder Approvals, U.S. antitrust clearance, and meeting other customary closing conditions.The Transaction is expected to close by the end of 2020. As always, there is more below the fold.

Livongo-Teladoc: Virtual Healthcare Giants to Combine

This is the largest healthcare sector M&amp;A Deal announced so far in 2020. Earlier this year, in March, <a href="https://www.smartkarma.com/entities/thermo-fisher-scientific-inc" target="_blank" data-smartkarma-citation="entities:7375:1" rel="noopener">Thermo Fisher Scientific Inc (TMO US)</a> agreed to acquire <a href="https://www.smartkarma.com/entities/qiagen-nv" target="_blank" data-smartkarma-citation="entities:26865:1" rel="noopener">QIAGEN NV (QIA GY)</a> in a deal that originally valued the company at an EV of ~US$11bn. Last month, the Offer <a href="https://corporate.qiagen.com/newsroom/press-releases/2020/20200716_amended_offer" target="_blank" rel="noopener">was bumped</a> from the original offer price of €39.00 to €43.00 and the minimum acceptance threshold was reduced from 75% to 66.67%. Although the COVID-19 pandemic resulted in a slowdown in Deals in the early part of the year, M&amp;A activity in the medical devices space seems to be picking up again.More recently, on 2nd August 2020, Germany-based medtech company <a href="https://www.smartkarma.com/entities/siemens-healthineers-ag" target="_blank" data-smartkarma-citation="entities:29221:1" rel="noopener">Siemens Healthineers AG (SHL GR)</a> announced they would acquire US-based medical-devices maker <a href="https://www.smartkarma.com/entities/varian-medical-systems-inc" target="_blank" data-smartkarma-citation="entities:7308:1" rel="noopener">Varian Medical Systems (VAR US)</a> in an all-cash deal that valued the company at ~US$16.4bn. The Deal is conditional on the receipt of Varian shareholder approval and regulatory approvals. The Offer Price is $177.50 per share and the transaction is expected to close in the first half of calendar year 2021. As always, there is more below the fold.

This is the largest healthcare sector M&amp;A Deal announced so far in 2020. Earlier this year, in March, Thermo Fisher Scientific Inc (TMO US) agreed to acquire QIAGEN NV (QIA GY) in a deal that originally valued the company at an EV of ~US$11bn. Last month, the Offer was bumped from the original offer price of €39.00 to €43.00 and the minimum acceptance threshold was reduced from 75% to 66.67%. Although the COVID-19 pandemic resulted in a slowdown in Deals in the early part of the year, M&amp;A activity in the medical devices space seems to be picking up again.More recently, on 2nd August 2020, Germany-based medtech company Siemens Healthineers AG (SHL GR) announced they would acquire US-based medical-devices maker Varian Medical Systems (VAR US) in an all-cash deal that valued the company at ~US$16.4bn. The Deal is conditional on the receipt of Varian shareholder approval and regulatory approvals. The Offer Price is $177.50 per share and the transaction is expected to close in the first half of calendar year 2021. As always, there is more below the fold. 

Varian-Siemens Deal: DAX Promotion on the Cards for the Acquirer

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

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After weeks of deliberation, the board of <a href="https://www.smartkarma.com/entities/10365" target="_blank" data-smartkarma-citation="entities:10365:1">Sirtex Medical Ltd (SRX AU)</a> has finally decided to enter a binding scheme implementation deed with China-based CDH Genetech Ltd and <a href="https://www.smartkarma.com/entities/15283" target="_blank" data-smartkarma-citation="entities:15283:1">China Grand Pharmaceuticals And Healthcare Hld. Ltd. (512 HK)</a>, or CDH-CGP, at AUD 33.60 per share, valuing the company at around AUD 1.87 billion. This represents a 20% premium to the unchanged AUD 28 per share offer by U.S.-based <a href="https://www.smartkarma.com/entities/7308" target="_blank" data-smartkarma-citation="entities:7308:1">Varian Medical Systems Inc (VAR US)</a>, announced on Jan. 30, and according to management, follows…

After weeks of deliberation, the board of Sirtex Medical Ltd (SRX AU) has finally decided to enter a binding scheme implementation deed with China-based CDH Genetech Ltd and China Grand Pharmaceuticals And Healthcare Hld. Ltd. (512 HK), or CDH-CGP, at AUD 33.60 per share, valuing the company at around AUD 1.87 billion. This represents a 20% premium to the unchanged AUD 28 per share offer by U.S.-based Varian Medical Systems Inc (VAR US), announced on Jan. 30, and according to management, follows…

Sirtex Board Deems China Bid Best for Shareholders and Accepts Higher Offer; Adjusting FVE

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

On June 14th hours after the close, <a href="https://www.smartkarma.com/entities/10365" target="_blank" data-smartkarma-citation="entities:10365:1">Sirtex Medical Ltd (SRX AU)</a>  <a href="https://www.asx.com.au/asxpdf/20180614/pdf/43vsbysjmbzyvs.pdf" target="_blank">announced</a> (doc) that it had terminated its previously director-supported Scheme with <a href="https://www.smartkarma.com/entities/7308" target="_blank" data-smartkarma-citation="entities:7308:1">Varian Medical Systems Inc (VAR US)</a> and had entered into a Binding Scheme Implementation Deed with CDH Genetech and China Grand Pharma. The deal has been slightly amended. It is still at the same price of A$33.60 (a near 80% premium to the price before the Varian Scheme was announced) but it is is now a joint deal, not a CDH deal with sub-investor…

On June 14th hours after the close, Sirtex Medical Ltd (SRX AU)  announced (doc) that it had terminated its previously director-supported Scheme with Varian Medical Systems Inc (VAR US) and had entered into a Binding Scheme Implementation Deed with CDH Genetech and China Grand Pharma. The deal has been slightly amended. It is still at the same price of A$33.60 (a near 80% premium to the price before the Varian Scheme was announced) but it is is now a joint deal, not a CDH deal with sub-investor…

Sirtex Terminates Varian Scheme, Embraces CDH

United States

Varian Medical Systems, Inc. designs, manufactures, sells, and services medical equipment. The Company offers radiotherapy, radiosurgery, X-ray tube technology, digital image detectors, cargo screening, and non-destructive testing equipment. Varian Medical Systems serves the healthcare sector globally.

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Varian Medical Systems (VAR UN)

Stock Ideas Based on Data Mined from Technical Publications - Electro, Radio, & Ultrasound Therapies

The report identifies companies best positioned in Electro, Radiation, and Ultrasound therapeutic technologies. These therapies are a safer...

Pyari Menon

Livongo-Teladoc: Virtual Healthcare Giants to Combine

Another large healthcare sector deal less than a week from the last!On 2nd August 2020, medtech giant Siemens Healthineers AG (SHL GR) announced...

Janaghan Jeyakumar, CFA

Varian-Siemens Deal: DAX Promotion on the Cards for the Acquirer

This is the largest healthcare sector M&A Deal announced so far in 2020. Earlier this year, in March, Thermo Fisher Scientific Inc (TMO US)...

Janaghan Jeyakumar, CFA

Sirtex Board Deems China Bid Best for Shareholders and Accepts Higher Offer; Adjusting FVE

After weeks of deliberation, the board of Sirtex Medical Ltd (SRX AU) has finally decided to enter a binding scheme implementation deed with...

Morningstar, Inc.

Sirtex Terminates Varian Scheme, Embraces CDH

On June 14th hours after the close, Sirtex Medical Ltd (SRX AU) announced (doc) that it had terminated its previously director-supported Scheme...

Travis Lundy

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