Smartkarma Daily Briefs

• For a company that strives to improve people’s lives, investors in EOFlow (294090 KS) shares have mostly faced a world of pain over the past year. 
• After Insulet Corp (PODD US) filed a lawsuit on the 8th August 2023, accusing EOFlow of misappropriating trade secrets, patent infringement, and trademark dilution, shares declined ~88% by year-end.
• Earlier this month, the courts quashed Insulet’s preliminary injunction. EOFlow is up 200%. Insulet is up 3% (?).  And Medtronic (MDT US), EOFlow’s prior suitor, is no doubt weighing options.

• Biopharmaceutical outfit Shanghai Henlius Biotech (2696 HK) is currently suspended pursuant to the Takeovers Code.
• Shanghai Fosun Pharmaceutical (Group) (2196 HK) holds ~60% in Henlius, mostly via domestic shares. Co-founders and Qatar Authority hold ~28% and 8% the H shares respectively.
• IF an Offer were to unfold, it would be the third in this space in the past two months, after Offers for Sciclone (6600 HK) and Yichang HEC (1558 HK),

• Shanghai Henlius Biotech (2696 HK) entered a trading halt “pending the release of an announcement pursuant to the Code on Takeovers and Mergers.” The likely bidder is Fosun Pharma.
• A merger by absorption would require approval by at least 75% independent H Shareholders (<10% of all independent H Shareholders rejection). There could also be a 90% minimum acceptance condition. 
• The shares are 62% below the IPO price. However, shareholders with blocking stakes would welcome an offer suggesting a 30-40% takeover premium would be sufficient.

• Terumo Corp (4543 JP) reported 18% revenue growth in Q4FY24, driven by C&V and TBCT businesses. With the steady progress in profit improvement measures, operating profit rose 45%.
• For FY25, the company expects revenue of ¥980B (up 6% YoY), operating profit of ¥165B (up 18% YoY), and net profit of ¥122B (up 15% YoY).
• The company remains cautious and provided a conservative FY25 guidance. Improvement in any its assumptions provides room for upward revision of the guidance.

• On the 28th March, Li Zhenfu (SciClone (6600 HK)‘s NED), Assicurazioni Generali (G IM), and concert parties (collectively controlling 36.61%), made an Offer at $18.80/share, a 33.9% premium to undisturbed. 
• The Offer price is bang in line with SciClone’s March 2021 IPO price. Terms were declared final. This is a clean deal.
• The Scheme Document is now out. The Court Meeting will be held on the 19th June. Expected payment on or before the 12 July. FWIW: IFA says fair & reasonable.

• Shield is a commercial-stage pharma company delivering specialty products that address patients’ unmet medical needs, with an initial focus on iron deficiency (ID).
• Since its US launch in July 2021, Shield and its partner, Viatris, have increased physician awareness of the differentiating characteristics of Accrufer® as an oral ID drug, in order to ramp up prescriptions (Rxs) and generate sales traction.
• Positive Rx momentum in 2022 and 2023, is expected to accelerate in 2024 and 2025 with the revised aim of becoming cashflow positive in 2H’25.

OSE Immunotherapeutics has announced a considerable expansion of its partnership with Boehringer Ingelheim (BI), including the start of two new projects. The first project aims to broaden the scope of BI 765063 and BI 770371 (two immuno-oncology anti-SIRPα monoclonal antibodies (mAbs) being evaluated as part of the initial collaboration and licence agreement), by investigating the candidates in cardiovascular-renal-metabolic (CRM) diseases. The second project will be a new preclinical program to develop immune-cell activating treatments based on OSE’s cis-targeting anti-PD1/cytokine platform. Under the new collaboration terms, OSE will receive an initial payment of €38.8m, comprising a one-time partial royalty buy-out of €25.3m for the BI 765063 and BI 770371 programs, and a €13.5m upfront payment for the new preclinical program. Additionally, OSE could also receive a €17.5m near-term milestone payment for the new preclinical project. We view the announced expansion as especially encouraging in light of the challenging funding environment. OSE’s share price increased by c 15% on 22 May following the announcement.

• BrainStorm Cell Therapeutics Inc. (Nasdaq: BCLI) is a biotechnology company focused on developing autologous mesenchymal stem cell (MSC) therapies for the treatment of neurodegenerative diseases – BCLI’s primary target is the fatal amyotrophic lateral sclerosis (ALS/MND/Lou Gehrig’s).
• BCLI’s’s proprietary technology platform, NurOwnTM, stimulates Mesenchymal Stem Cells to emit neurotrophic factors (MSC-NTF), which promote the survival of neurons across multiple disease states.

• On May 8, 2024, Kamada Ltd. (KMDA) announced financial results for the first quarter of 2024.
• Revenues for the first quarter of 2024 were $37.7 million, which was a 23% increase compared to the first quarter of 2023.
• Adjusted EBITDA was $7.5 million, which was a 96% increase from the $3.8 million in the first quarter of 2023.

• Top Glove, Medtecs International, UG HealthCare and Riverstone have averaged 24% returns in the month-to-date, partially attributed to the Biden administration announcing higher tariff rates for certain imports from China including PPE items such as respirators and face masks, in addition to rubber medical and surgical gloves.
• This month, Top Glove ADT has surged more than 5-fold from the preceding 4 months.
• As maintained by Top Glove Corporation, gloves have evolved from basic protective gear to sophisticated, technologically advanced products that cater to a wide range of applications.