Healthcare

• There’re rumor that Akeso’s AK112 and AK104 2024 revenue is RMB300 million and RMB1.5-1.6 billion respectively. Sales of AK104 may be below expectations, so Akeso decided to enter NRDL reimbursement.
• Regardless of whether there is a takeover offer, reasonable valuation of Legend Bio is between US$12.5bn-US$15bn based on solid fundamentals. This deal is “a test” for the management of Genscript.
• Current stock price of InnoCare just reflects its essence. If no new catalysts (e.g. breakthroughs in clinical data, new licensing agreement, etc.), we are not optimistic about the prospects of InnoCare.

• Cara Therapeutics has been trending all over the internet after the company recently decided to explore a potential sale.
• Recent, Cara Therapeutics’ management announced a focus shift toward its most promising project, oral difelikefalin for treating notalgia paresthetica (NP), a chronic neuropathic condition with no currently approved therapies.
• The reallocation of resources toward this program enables Cara Therapeutics to extend its cash runway into 2026, potentially covering all crucial value inflection milestones for the NP program.

• Intuitive Surgical (ISRG US) posted another strong quarterly result, with key performance indicators including total revenue, procedure growth, system placement, and EPS beating consensus.
• 2Q24 procedure volume growth was 17% (estimate 15.5%) and accelerated from 16% in 1Q24. Intuitive narrowed full-year 2024 procedure growth forecast to 15.5–17.0%. The company raised gross margin guidance.
• Despite phased rollout, 70 da Vinci 5 systems placement in 2Q24 seems impressive. It represents almost half of the total U.S. placement. In 2H24, placement is expected to increase modestly.

• OvaWatch mass monitoring completes OvaSuite portfolio.
• With the recent launch of longitudinal or serial adnexal mass monitoring for OvaWatch, physicians and patients could assess ongoing malignancy risk for all women with a mass.
• Collaboration opportunities for biobank. Aspira completed a full inventory of its biobank, identifying about 70K patient samples, which would be available for secondary research and potential collaboration opportunities. The biobank is a significant competitive advantage in developing solutions for ovarian cancer and other gynecologic diseases.

• On July 18, 2024, Cocrystal Pharma, Inc. (COCP) reported favorable safety and tolerability results from the single-ascending dose (SAD) cohorts of the Phase 1 study of CDI-988, the company’s pan-viral protease inhibitor that is being developed as a treatment of norovirus and coronavirus.
• The single center, randomized, double blind Phase 1 trial is evaluating the safety, tolerability, and pharmacokinetics of CDI-988 compared to placebo in healthy adults in doses ranging from 100 mg to 600 mg.
• The results showed that all participants completed the study with no discontinuations and there were no serious adverse events or severe treatment-emergent adverse events.

• Longeveron is focusing on using its primary treatment, Lomecel-B, to fight a rare pediatric heart birth defect that devastates families but continues to receive good FDA news regarding its treatment for Alzheimer’s Disease.
• The company announced that Lomecel B has been granted the Fast Track designation by the FDA, only a week after being granted the RMAT designation, which we believe further demonstrates the positive momentum of LGVN.

• Capitol Health (CAJ AU) has entered a binding merger proposal with Integral Diagnostics (IDX AU) at 0.12849 Integral shares per Capitol share.
• The transaction will require approval from the ACCC and Capitol shareholders. Due to the minimal geographic overlap, ACCC clearance should be forthcoming.
• The offer is attractive compared to historical exchange ratios, trading ranges and peer multiples. At the last close, the gross spread was 8.0%. 

• Back on the 17th June, diagnostic imaging provider Capitol Health (CAJ AU) announced it had entered into a process deed with Integral Diagnostics (IDX AU). Terms are now firmed.
• IDX will issue 0.12849 new IDX shares for each Capitol share. Scrip terms are unchanged from that announced previously. Upon completing the transaction, Integral would hold 63% in the NewCo. 
• Apart from ACCC signing off, this transaction looks priced to complete. 

• Since mid-June, share-price spreads have generally tightened across our European liquid universe of ordinary and preferred shares (13 have tightened, 5 widened, 1 remained at same level).
• Recommended trades long preferred / short ordinary shares: Atlas Copco, Grifols (see section on the company), Media-for-Europe, Sixt.
• Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal.

• The first quarter of 2024 saw STAAR Surgical achieve a noteworthy result by generating net sales of $77.4 million, surpassing the expectations set for this period.
• This result underscores the effectiveness of STAAR Surgical’s refined commercial strategy and the high uptake of its proprietary EVO ICL technology across all key geographical regions.
• With a year-over-year increase represented by these figures, the company successfully navigated the challenges of a market predominantly inclined towards laser vision correction, where it successfully captured additional market share.

• In assessing Evotec SE’s Q1 2024 fiscal results and its potential for acquisition, a reflection on both financial metrics and strategic initiatives offers insight.
• Evotec SE, amidst a challenging market environment, reported a slight revenue decrease of 2% year-over-year, totaling EUR 208.8 million in Q1 2024.
• The company’s primary revenue contraction stemmed from its Shared R&D business, which saw a decline of 23% compared to the same quarter in the previous year.

• Medicus Pharma Ltd. (TSXV:MDCX) is focused on acquiring or partnering with life-science companies that are developing novel therapeutics for unmet healthcare needs that are already in the clinical trial stage.
• Management plans fast-track these specific therapies through FDA clinical trials toward commercialization.
• The company’s first acquisition was SkinJect, which has a novel, patented transdermal patch for the treatment of BCC.

• On May 13, 2024, Tonix Pharmaceuticals Holding Corp. (TNXP) announced financial results for the first quarter of 2024 and provided a business update.
• Tonix will be filing a New Drug Application (NDA) for Tonyma (TNX-102 SL cyclobenzaprine HCl) for fibromyalgia in the second half of 2024 based on positive results from the Phase 3 RELIEF and RESILIENT trials.
• The company recently announced key findings from the initial phase of a market opportunity analysis for Tonmya by EVERSANA, including a high dissatisfaction rate with currently prescribed drugs for fibromyalgia patients, a high unmet need for effective therapies, and a high level of interest in Tonmya with an intended use of 40% among surveyed physicians.

• There are a bunch of stocks listed in Hong Kong that have underperformed the HSCEI INDEX and their peers and could be deleted from global passive portfolios in August.
• The deletion from passive portfolios will lead to a liquidity event at the end of August where passive trackers will need to sell multiple days of ADV.
• There has been a big jump in cumulative excess volume in some stocks and the A/H premium on a lot of the names has jumped over the last few months.

• Longeveron is focusing on using its primary treatment, Lomecel-B, to fight a rare pediatric heart birth defect that devastates families but continues to receive good FDA news regarding its treatment for Alzheimer’s Disease.
• The company announced that Lomecel B has been granted the Fast Track designation by the FDA, only a week after being granted the RMAT designation, which we believe further demonstrates the positive momentum of LGVN.

• Due to industry characteristics, it would be difficult for Distinct Healthcare to scale up. The Company is more of “a supplementary role” in the entire medical service system in China.
• Profit margin is not satisfactory and cost side is also difficult to reduce. Even if Distinct Healthcare successfully turns losses into profits, it’s hard to generate good returns for investors.
• Post-Money valuation was US$510 million after Series E financing. For a company that would encounter bottlenecks in both revenue and profit growth, it would be difficult to achieve high valuation.

• Glaukom Corporation has reported a promising start to Q1 2024, underscoring strong sales and a forward-looking strategy driven by innovations in glaucoma and corneal health technologies.
• In the first quarter, Glaukom posted record net sales of $85.6 million, marking a 16% rise compared to the previous year.
• U.S. and international glaucoma franchises each saw a year-over-year growth of 20%, showcasing robust market engagements driven mainly by the iStent products and the promising launch of iDose TR, a novel microinvasive injectable therapy.

• Haemonetics Corporation has demonstrated significant progress in its business strategies, leading to notable growth in its latest fiscal results, despite facing challenges and changes.
• Noteworthy is the company’s bold shift in integrating service revenue within its commercial units and adjusting its reporting formats.
• These efforts aim to streamline internal synergies and enhance accountability, potentially offering improved customer service and driving robust growth in the new work structure.

• Intuitive Surgical’s first quarter of 2024 demonstrates robust performance in procedure growth and system placements despite some regional adversity.
• The solid results reflect consistent execution and innovation in its product offerings, such as the launch of the next-generation multiport platform, da Vinci 5, and the roll-out of the da Vinci SP platform in Europe.
• While the company shows resilience and growth potential, there are several factors and challenges that investors should consider when evaluating its investment prospects.

• Biopharma company LABP targeted for takeover by AbbVie with offer of $20.42 cash per share and CVR potentially worth over $11
• Deal valued at $137.5 million in cash and $75 million in contingent value rights, expected to close in Q2 2024
• CVR presents opportunity for potentially lucrative payout but comes with risks associated with illiquid securities

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Revolution Medicines has posted the financial and operational updates for the first quarter of 2024, emphasizing significant advancements in its novel RAS(ON) inhibitor pipeline.
• The company continues to prioritize advancing RMC-6236 into pivotal monotherapy trials in major cancers driven by oncogenic RAS variants, with a strong focus on expanding the clinical applications of RMC-6236 beyond G12X mutations into different RAS genotypes and tumor types.
• In the past quarter, Revolution Medicines has provided encouraging preclinical and clinical data, particularly highlighting the potential of RMC-6236 in treating various cancers, including pancreatic ductal adenocarcinoma and non-small cell lung cancer.

• China Traditional Chinese Medicine (570 HK)’s monthly update provides ammunition to both the bulls and bears. Since falling on no news on 26 June, the spread has widened to 31.8%. 
• The bull view is that while the timelines are delayed, the privatisation remains on track as the update shows ongoing progress in satisfying the pre-condition. 
• The bear view is that progress remains glacial, as the consortium wants to withdraw from a binding offer by failing to satisfy the pre-condition before the long stop date.

• Legend Biotech Corp (LEGN US) shares increased 12% on Friday as a Street Insider report claimed it received takeover interest and hired Centerview Partners to help review the offer.
• Genscript Biotech (1548 HK), the largest shareholder, shares rose 25%. Genscript responsded that it is not aware of any reasons for these share price movements and any inside information.
• The chances for an offer are low as the offeror would face several hurdles. Nevertheless, without an offer, the upcoming CARVYKTI commercial production in 2H24 will support the share price.   

• Three business segments of Shineway showed negative YoY growth in 24Q1. 24Q2 performance could remain sluggish. We’re not optimistic about the 24H1 results due to the high base in 23H1.
• It is expected that Shineway’s growth in 24H2 would pick up. If revenue growth of Shineway in 2024 full-year could be double-digit (e.g. 10-15% YoY), it is already good.
• Shineway is undervalued. It has sufficient cash (cash balance of RMB5.9 billion by 2023) and is willing to distribute dividends (usually twice a year). Shineway is suitable for long-term holding.

• Hisamitsu Pharmaceutical Co (4530 JP) has reported double-digit growth in revenue and net profit in Q1FY25. However, operating profit decreased 5% YoY due to higher expenses.  
• Topline growth was mainly driven by Salonpas, which was named the world’s no. 1 OTC topical analgesic patch band for the eighth consecutive year.  
• The company reiterated FY25 guidance of 7% revenue growth and low double-digit operating and net profit growth, as an increase in operating profit is expected for the full-year as planned.

• Sagility India (2058883D IN) is looking to raise up to US$500m in its upcoming India IPO. The deal will be run by ICICI Securities, IIFL Securities, Jefferies and JP Morgan. 
• Sagility India is a pure-play healthcare focused solutions and services provider to Payers (U.S. health insurance companies), and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies). 
• It supports the core business operations of both Payer and Provider clients. 

• AVITA Medical has a 75% market share in the burns market, surpassing competitors
• The company’s recent financial performance has been strong, with an 84% increase in revenue in 2020
• AVITA Medical has significant potential for growth and value creation in the future, given its position in the burns industry and growing market opportunity

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Yichang HEC Changjiang Pharma (1558 HK), China Traditional Chinese Medicine (570 HK), Canvest Environmental Protection Group (1381 HK), A8 New Media (800 HK), Asia Cement China (743 HK).
• Lowest spreads: Fancl Corp (4921 JP), Tatsuta Electric Wire & Cable (5809 JP), Alumina Ltd (AWC AU), Nagatanien Holdings (2899 JP), Mimasu Semiconductor Industry (8155 JP), Infocom Corp (4348 JP). 

• Legend Biotech received takeover interest and hired Centerview Partners to review the offer. Due to the satisfactory clinical results/promising commercialization outlook of Carvykti, Legend Bio is an attractive M&A candidate.
• Peak sales of Carvykti could exceed US$5 billion. After Carvykti is approved by the FDA/EC for 2L treatment of MM, future valuation leap of legend Bio is becoming more certain.
• Legend Bio is clearly undervalued. We think reasonable market value range for Legend Bio is about US$12.5 – 15 billion, which means there is decent upward potential for share price.

• 10x Genomics recently disclosed its financial results for the first quarter ended March 31, 2024, showcasing a revenue increase of 5% to $141 million.
• The company’s earnings overview indicates a mixed performance with significant developments in its product offerings that could influence its future market positioning, financial health, and competitive edge.
• Positively, 10x Genomics reported robust growth in its spatial biology segment, primarily fueled by its Visium franchise and the launch of Visium HD.

• One “unique” feature of China’s CXOs is that they like investment more than drug R&D business, but the investment-driven model will result in “interest-to-conflict”, which actually “crosses the line”.
• RemeGen’s shares plummet last week. In current situation of investors’ lack of confidence/trust in RemeGen, stock price may not have hit bottom yet, so no need to rush to bottom-fish.
• For Kelun Bio, if SKB264 fails to deliver good data, valuation would face the risk of pullback. After the lock-up expiry, there could be opportunity to buy at lower price.

• Sam Chun Dang Pharm (000250 KS) secured exclusive 10-year contract to supply Eylea biosimilar (SCD411) to nine European countries. The company will receive 55% of gross sales of the product.
• Last month, the company placed 500K shares (~2% of issued capital) to Shinhan Investment Securities to raise KRW71.4B. Proceeds will be utilized to fund the company’s global clinical trial cost.
• The company has started exporting generic glaucoma eye drop to the U.S. and expects to start exporting at least two more generic ophthalmic products in the U.S. this year.

• Halozyme reported a solid first quarter of 2024, marking a steady continuation of growth that aligns well with the company’s expectations and projected guidance for the remainder of the year.
• Key drivers of optimism included consistent royalty revenue growth, anticipated milestone payments, and robust projections for earnings before interest, taxes, depreciation, and amortization (EBITDA).
• With these foundational elements, Halozyme is poised for a promising financial trajectory, reinforced by ongoing business developments and strategic partnerships.

• Merit Medical Systems experienced a robust first quarter in fiscal year 2024, exhibiting revenue growth of 8.7% year-over-year on a GAAP basis and 9.3% on a constant currency basis, resulting in total revenue of $323.5 million.
• This performance exceeded the company’s initial projections, primarily driven by solid organic growth and contributions from acquired products.
• Specifically, the Cardiovascular segment spearheaded this upward trend with a 9% increase, complemented by a 6% uptick in the Endoscopy segment.

• Perrigo’s first quarter 2024 financial results reflect a business in recovery and transition, marked by strategic initiatives aimed at long-term growth despite immediate challenges.
• The company reported a net sales decrease of 8%, primarily driven by its infant formula business and SKU prioritization actions.
• Organic net sales declined by 7%, with infant formula alone accounting for a 4.3 percentage point drop.

• QuidelOrtho presented its First Quarter 2024 Financial Results, reflecting both strengths and challenges in its operations.
• The company reported total revenue of $711 million, a decline from $846 million in the comparable prior year period, primarily due to reduced COVID-19 related revenues.
• Despite this, excluded COVID-19 revenues showed a growth of 6% in constant currency across all regions, showcasing solid growth particularly in the EMEA and China regions.

• Blueprint Medicines Corporation recently discussed its first-quarter financial results for 2024, emphasizing the robust launch of AYVAKIT in indolent systemic mastocytosis (ISM).
• While outlining its continuing growth and strategic initiatives, the company highlighted strengths across various fronts but also acknowledged ongoing challenges and strategic investments.
• Blueprint Medicines reported notable revenue growth driven primarily by AYVAKIT, its product for treating ISM.

• FY05/24 revenue was JPY3.3bn, operating profit JPY1.0bn, recurring profit JPY1.1bn, and net income JPY749mn, all down YoY.
• Enjin’s FY05/25 forecast: revenue JPY2.7bn, operating profit JPY548mn, recurring profit JPY548mn, and net income JPY380mn, all expected to decline YoY.
• Enjin revised its medium-term business plan due to HR challenges and plans to release updated targets reflecting the current environment.

• Chinese innovative drugmaker Sichuan Biokin Pharmaceutical Co. Ltd. has filed with the Hong Kong Stock Exchange for an initial public offering (IPO) in an effort to tap fresh funding to support new drug development and overseas expansion.
• Biokin, already listed in Shanghai, did not disclose the target size of its Hong Kong offering. According to its preliminary prospectus, Goldman Sachs Group Inc., JPMorgan Chase & Co., and Citic Securities Co. Ltd. are joint sponsors for the share sale.
• Founded in 1996, Biokin began as a producer of chemical generic drugs and proprietary Chinese medicines. The company has since 2011 moved on to novel biological drugs, focusing on antibody-drug conjugates (ADCs) for cancer treatment.

• Catalent, a global leader in providing development, manufacturing, and delivery technologies for drugs and biologics, has exhibited both solid performance and areas of challenge in their preliminary financial results for the first quarter of fiscal year 2024.
• The company has reaffirmed its full-year guidance, despite the persisting headwinds in various markets which the management team addressed through operational effectiveness and strategic reviews.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• PharmChem Inc. specializes in sweat-based drug testing for criminal justice customers
• Faced challenges in 2021 and 2022 but has since recovered sales and announced plans for growth in 2024
• Analysts predict stock price to rise from $2.91 to over $4 this year as investors re-evaluate company’s prospects

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Shanghai Henlius Biotech (2696 HK) announced that the share alternative pre-condition was satisfied. However, the share alternative offer remains at Shanghai Fosun Pharmaceutical (Group) (2196 HK)’s discretion. 
• Loyal Valley Capital (LVC), a pre-IPO investor, emerged as a substantial shareholder on 10 July, the deadline for submitting letters of interest for the share alternative offer.
• The likely scenario is that the offer succeeds as the co-founders enter rollover arrangements, and a share alternative is introduced, which is taken by QIA and LVC. 

• After what appeared indecisiveness from Genesis Capital, Crescent Capital’s National Dental Care snuck in on the 29th April and entered into a Scheme with Pacific Smiles (PSQ AU) at A$1.90/share. 
• The Scheme Meeting is the 1st August with expected implementation on the 19th August. The IE (Deloitte) reckoned terms are fair & reasonable. All good right? Not quite.
• The Takeovers Panel has concluded Genesis Capital, with 19.9% of shares out, is free to vote. Assuming Genesis votes against the Scheme, Crescent Capital’s Offer is effectively dead.

• Shanghai Fosun Pharmaceutical (Group) (2196 HK)‘s (SFP) “Merger by Absorption” HK$24.60/share cash Offer for H-shares not held in Shanghai Henlius Biotech (2696 HK), tentatively includes a scrip alternative.
• The first hurdle for the share option – valid letters of interest from those shareholders wishing to rollover – was secured yesterday. SCP still has the discretion on providing scrip.
• But if SFP had any lingering doubts whether to offer scrip, that was answered earlier this week with the emergence of a substantial shareholder who is typically a pre-IPO investor.

• Alteogen Inc (196170 KS) received approval for first product, Tergase, a recombinant human hyaluronidase liquid product, in Korea. Tergase increases penetration during intramuscular or subcutaneous injection and local anesthesia.
• With excellent safety profile compared to existing animal-derived hyaluronidase products, Tergase stands to emerge as a promising alternative in the global hyaluronidase market estimated to be $1B in near future.
• Alteogen’s subsidiary, Altos Biologics submitted marketing authorization approval to the European Medicines Agency for Eylea biosimilar. Approval is expected by next year.

We highlight the opportunity of topical RECCE® 327 (R327) to address diabetic foot infections (DFIs), which is the leading cause of limb morbidity in diabetic patients and an area of unmet need as currently available topical drugs have limited effectiveness. Recce is planning to initiate a Phase III registration-enabling study in H2 CY24 in Indonesia. We anticipate that positive results from the trial could lead to Recce’s earliest R327 commercialisation opportunity, through a launch in South-East Asia in the DFI indication in H2 CY26. The company announced an A$10m equity financing that is expected to extend its runway into FY26. We now obtain an rNPV valuation of A$688.5m (or A$3.07 per share), versus A$661.3m (or A$3.27 per share) previously. The reduced value per share is due to the anticipated increase in share count post-financing.

• Monogram Orthopaedics Inc. is an overvalued, pre-revenue stock trading at 10x cash with financial concerns, heavily shorted and planning to issue more shares, potentially leading to a stock price crash.
• The stock saw an 80% increase following a press release mentioning Nvidia, but the spike is expected to be short-lived.
• MGRM lacks significant institutional investors and its largest shareholders include a supplier, board members, and a hospital that licensed technology to the company. With $13.6 million in cash, the company may need to raise equity soon.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Teladoc Health recently reported its first quarter results for 2024, which provide insights into the company’s financial health and strategic directions during its transition period.
• The company is actively seeking a new CEO while focusing on strengthening its market leadership in total care solutions and improving both top and bottom line performance.
• During the first quarter, Teladoc Health surpassed both revenue and adjusted EBITDA expectations set by the company.

• TG Therapeutics focuses on developing treatments for B-cell mediated diseases, including their flagship product Briumvi for Multiple Sclerosis
• The company has a pipeline of other products such as Umbralisib, TG-1701, and TG-1801 in development
• Briumvi is an anti-CD20 monoclonal antibody targeted at specific types of MS, showcasing the company’s commitment to addressing unmet medical needs in the field

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.