Healthcare

• As HCG’s scale is growing and as its emerging centers are maturing, profitability is improving. Adjusted EBITDA crossed INR 100cr mark for the first time ever.
• EBITDA grew by 21% YoY in Q2FY25 with EBITDA margin improving to 18.8% vs 17.8% YoY. Q2FY25 revenue also grew healthy at 14% YoY to reach INR 550cr+.
• HCG also announced acquisition of a cancer hospital in Vizag that is margin accretive. Including this acquisition, EBITDA margin is 19% and proforma revenue growth is 20% YoY.

• On 20 December, Chabiotech (085660 KS) announced that it plans to conduct a rights offering capital raise of 250 billion won. 
• The expected rights offering price is 10,800 won (27.3% lower than current price of 14,860 won). A total of 23.148 million new shares (41% of outstanding shares) will be issued.
• This capital raise by CHA Biotech is likely to further negatively impact the company’s share price in the next several weeks as many investors are concerned about excessive shares dilution. 

• MIRA Pharmaceuticals(MIRA) Company Sponsored Research Report

• On December 18, 2024, MetaVia announced positive topline results from the Phase 2a clinical trial of DA-1241 in patients with presumed metabolic dysfunction-associated steatohepatitis (MASH).
• The results showed a statistically significant decrease in alanine aminotransferase (ALT) levels, the trials primary outcome, for DA-1241 100 mg at weeks 4 and 8 and statistically significant results were also seen in controlled attenuation parameter (CAP) and hemoglobin A1c.
• DA-1241 was well tolerated with only 35% of patients on the 100 mg dose reporting a treatment related adverse event (TEAE) compared to 28% on placebo.

• After the China Traditional Chinese Medicine (570 HK) fiasco back in October, Hong Kong M&As have received some welcome Xmas cheer of late.
• Small-Cap CM Hi-Tech  (2115 HK) secured reg approvals in record time. Then CPMC (906 HK)‘s pre-cons were satisfied on 13th December. Now Shanghai Henlius (2696 HK)‘s pre-cons are also fulfilled. 
• Henlius’ spread narrowed after securing NDRC approval on the 22nd Nov; and again after fulfilling pre-cons this week. A 3.1% gross spread is okay. This is done. Get involved.

• STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
• In this insight, we look at the potential ADDs/DELs for the STAR50/STAR100 indices for the March 2025 index rebal event and suggest a high impact trade idea.

• Tempus AI reported its third-quarter 2024 financial results, reflecting positive revenue growth but continuing to face profitability challenges.
• Revenue rose by 33%, reaching $180.9 million, driven by growth in the Genomics and Data and Services segments.
• Notably, the Genomics unit growth accelerated to 23.9%, which shows a significant uptick from the previous quarter.

• MIRA Pharmaceuticals(MIRA) Company Sponsored Research Report

• HealthEquity’s third-quarter fiscal 2025 performance and strategic positioning provide insights into potential investment considerations.
• The company reported a 21% increase in revenue year-over-year, indicating robust growth across key metrics, including adjusted EBITDA and Health Savings Account (HSA) assets.
• Notably, HSA assets grew by 33%, and the number of HSA members increased by 15%, demonstrating positive momentum and expansion within their core offering.

• The two core businesses is corporate and digital marketing services (2B business) and health and medical services (2C business),the synergy of which can form a virtuous cycle within the platform.
• The key performance driver for HealthWay is 2B business, but the pain point is 2C business, which is hard to scale up. Actually, HealthyWay’s growth momentum has slowed down significantly.
• After completing the final round of financing, HealthyWay’s valuation reached RMB4.1 billion. We think its valuation could be higher than ClouDr but lower than JD Health and Alibaba Health.

• Paras Healthcare Limited (0490145D IN)  is looking to raise up to US$180m in its upcoming India IPO.
• It is the fifth largest healthcare provider in India with a core focus on providing affordable and quality, specialized tertiary medical care in Tier 2 and 3 cities.
• In this note, we look at the firm’s past performance.

• SAI Life Sciences (SAILS12 IN) raised around US$360m in its India IPO.
• Sai Life Sciences is a contract research, development and manufacturing organisation providing end-to-end services across drug discovery, development and manufacturing value-chain, for small to global pharmaceutical innovators and biotechnology firms.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
• Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
• The key stocks mentioned in this regular insight include: BeiGene (6160 HK), China Wantian Holdings (1854 HK), and Super Hi International Holding (9658 HK) / Haidilao International Holding (6862 HK).

• Inventurus Knowledge Solutions (IKSINCD IN) raised around US$295m in its India IPO.
• IKS is a technology-enabled healthcare solutions provider, assisting physician enterprises in US, Canada and Australia, with a core focus in the US.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• Medical industry characteristics are the seriousness of diagnosis/treatment and the irreversibility of the process, which are the difficulties in implementing technology. The value that AI can provide is limited. 
• Xunfei’s business model is not To C, but To G (government) model. It’s not possible for SOE customers to pay high price for Xunfei’s AI model/products, leading to questionable profitability.
• Pre-IPO valuation has reached RMB8.4 billion. Without sustainable growth and stable profitability, valuation/liquidity of Xunfei after listing wouldn’t be good. We think Xunfei’s valuation could be similar to Yidu Tech.

Newron has entered into a licence agreement with EA Pharma, a subsidiary of Eisai, to develop, manufacture and commercialise evenamide, Newron’s proprietary modulator of the excessive release of glutamate for the treatment of schizophrenia. The transaction covers Japan and other designated Asian territories, meeting management’s target of securing a deal in Q424. Newron will receive an upfront payment of €44m, up to €73m in contributions to development and milestones, and will be eligible to tiered royalties up to a double-digit percentage of net sales for evenamide in the covered regions. We expect the upfront payment to extend Newron’s operating cash runway, enabling it to maintain operations through 2026 at a minimum (versus through H125 previously). We place our estimates under review as we update our model to reflect the terms of the announcement.

Following FDA approval in April 2024, Basilea has announced a much-anticipated partnership agreement with Innoviva Specialty Therapeutics for the commercialisation of Zevtera in the US. Deal terms include an upfront payment of US$4m, as well as tiered royalties on net sales in the high-teens to mid-20s percentage range. In addition, the company is eligible to receive up to US$223m in sales-related milestone payments. We view this as an important milestone and highly favourable transaction for Basilea, while offering an effective new medicine to combat Staphylococcus aureus bloodstream infections in the US. For now, we put our valuation on hold as we review our model and estimates.

Recce received approval from the Indonesian Drug and Food Regulatory Authority, Badan POM (BPOM), to start its registrational Phase III study in Indonesia of RECCE® 327 topical gel (R327G) in diabetic foot infections (DFIs). This was the final hurdle that needed to be overcome before study enrolment can proceed, which is expected to start before the end of 2024. Top-line data from the 300-patient double-blinded Phase III study (with 200 patients in the R327 arm and 100 on placebo) are anticipated in late 2025. If positive, we expect Recce would be able to launch R327G in South-East Asia in H2 CY26, potentially marking the company’s transition to a commercial stage.

• Akums Drugs and Pharmaceuticals (0200361D IN) shares are currently trading below their IPO price post Q2FY25 result announcement. Compared with year-ago quarter, Q2FY25 revenue and adjusted EBITDA declined.
• Digging deeper into the seemingly weak Q2FY25 result, we have come across some positive takeaways. With some of the recent developments, the company is well-positioned for long-term growth.
• The share price reaction is overdone. Over the last one month, Akums shares gained 6.5% and outperformed most of its domestic peers, as the long-term growth prospect remains intact.

• Performance declined sharply in 24H1 mainly due to the decrease in orders from Customer A. Herbs Generation’s business/financial performance would be easily affected if the contributions from Customer A decline.
• Current sales model of Herbs Generation is hard to change, and the Company still has to invest heavily in offline marketing and promotional efforts, but the efficiency is not high.
• Herbs Generation’s ability to resist risks is relatively weak, which prevents us from building optimistic expectations for sustainable growth in the future. Valuation should be lower than peers.

• UnitedHealth Group reported a strong financial performance in the third quarter of 2024, with revenues reaching $101 billion, marking a more than 9% increase over the prior year.
• This growth was driven by significant contributions from both the Optum and UnitedHealthcare divisions.
• Optum Health revenues grew by over $2 billion to approach $26 billion, and Optum Rx revenues increased by more than $5 billion to exceed $34 billion.

• In cumulative Q3 FY01/25, SanBio reported no operating revenue, with an operating loss of JPY2.5bn, narrowing YoY.
• Non-operating income was JPY504mn, primarily from foreign-exchange gains; recurring loss was JPY2.0bn, increasing YoY.
• Net loss attributable to owners was JPY2.2bn; deferred tax liabilities and extraordinary gains impacted financial results.

• On December 16, 2024, Soligenix, Inc. (SNGX) announced it has opened patient enrollment for the confirmatory Phase 3 FLASH2 (Fluorescent Light Activated Synthetic Hypericin 2) trial of HyBryte in patients with cutaneous T cell lymphoma (CTCL).
• This trial is supported by the statistically significant results from the Phase 3 FLASH study along with a successful comparator study and an ongoing investigator-initiated study.
• The trial will enroll approximately 80 patients across the U.S. and E.U. Patients will be treated for 18 consecutive weeks before being assessed for the study’s primary endpoint.

• Twist Bioscience (TWST US) fosters a new biotech paradigm by empowering startups and researchers with scalable tools, accelerating innovation and transforming biotech into a more agile, tech-style founder-driven industry.
• DNA synthesis should see strong growth (15-25% CAGR estimates) driven by synthetic biology revolutionizing healthcare, agriculture, and industry with precise, scalable solutions for gene editing and bioengineering.
• Lack of profitability and notable short-seller interest are concerns, but its innovative platform, high innovation score and transformative potential makes a somewhat risky but very good investment case

• Ligand Pharmaceuticals holds a portfolio of revenue, royalty & milestone generating assets that have been vetted by its internal investment team.
• Ligand considers individual biopharmaceutical products, platforms, companies & income streams in its opportunity set.
• It targets late-stage and commercial income-producing assets when making investments.

• Telix Pharmaceuticals (TLX AU) is the sole (and somewhat surprising) inclusion for the VanEck Vectors Australian Equal Weight ETF (MVW AU) in December.
• The one inclusion, float changes and capping changes result in a one-way turnover of 5.5% leading to a round-trip trade of A$290m.
• Shorts have increased in Telix Pharmaceuticals (TLX AU) this year but there has been some covering in the stock recently.

• The MV Australia Equal Weight Index represents the performance of large, liquid companies incorporated in Australia and listed on the ASX.
• Telix Pharmaceuticals (TLX AU) is an ADD for the December 2024 review, with no other changes to the index.
• We expect a one-way flow of $US90mm for December 2024, which translates to a turnover of 5.5%.

• Inventurus Knowledge Solutions (IKSINCD IN) is looking to raise up to US$295m in its upcoming India IPO.
• It is a technology-enabled healthcare solutions provider, assisting physician enterprises in US, Canada and Australia, with a core focus in the US.
• We have looked at the company’s past performance in our earlier notes. In this note, we discuss the industry growth, conduct a quick peer comparison and discuss the company’s valuation.

• Sinopharm will benefit from the strong expected growth in China’s healthcare spend.
• There is scope to increase its distribution which will continue to shield the company from short-term volatility.
• Pricing pressure in drug prices creates opportunity to optimise range and improve profitability.

• Cooper Companies reported a record revenue year for fiscal 2024, achieving $3.9 billion primarily driven by strong performances from its two main divisions, CooperVision and CooperSurgical.
• Each division marked record revenues, with CooperVision contributing $676 million in Q4, a 9% increase, largely due to its silicone hydrogel lenses like MyDay, Biofinity, and clariti.
• The division continues to hold a strong market position, especially in torics, multifocals, and myopia management despite a soft end to the quarter for the contact lens market.

• Veeva Systems reported a robust performance for its fiscal 2025 third quarter that ended on October 31, 2024.
• The company delivered revenue of $699 million, surpassing guidance, and achieved a non-GAAP operating income of $304 million.
• This indicates strong operational execution and continued innovation, which have been key differentiators for the company.

• Celltrion Inc (068270 KS) announced meaningful increase in dividends (including both cash and stock dividends).
• Celltrion will pay out stock dividend of 0.05 for shareholders as of record in 2024, this will be 150% higher than the average stock dividend in the past three years.
• Celltrion will also pay out cash DPS of 750 won for shareholders as of record in 2024, which is more than double the average DPS in the past three years. 

• Operating revenue increased by 78.3% YoY to JPY3.3bn, driven by sales of TDM-621 across multiple regions.
• Operating loss narrowed to JPY532mn, with a recurring loss of JPY798mn and a net loss of JPY806mn.
• US sales grew 151.4% YoY, achieving profitability; Europe and Japan also reported significant YoY sales growth.

• Revenue for FY10/24 was JPY4.4bn, a 3.4% YoY decrease, with operating profit down 89.4% YoY to JPY129mn.
• FY10/25 forecasts include revenue of JPY4.5bn (+3.4% YoY) and operating profit of JPY370mn (+186.5% YoY).
• Contract processing services revenue declined 12.8% YoY in FY10/24, with orders decreasing by 13.9% YoY.

• Addressing skeptics of CYB003’s durability data. As impressive as CYB003’s Phase 2 12-month data are, not everyone fully embraces them because of the small population size (n=7) from which they were generated.
• While this may logically be a fair question, Inamdar addressed this question by stating that not all data are created equal, with some data more impactful than others.
• Even with small numbers, you can have highly impactful data, and CYB003’s data were highly impactful clinically with a 100% response rate, a 70%-plus remission rate, and a mean 23-point MADRS change from baseline versus the two to three-point change that is typically considered by experts to be clinically significant outcomes for depression.

• SAI Life Sciences (SAILS12 IN) is looking to raise up to US$360m in its upcoming India IPO.
• Sai Life Sciences is a contract research, development and manufacturing organisation providing end-to-end services across drug discovery, development and manufacturing value-chain, for small to global pharmaceutical innovators and biotechnology firms.
• We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

• Debt Refinancing Achieved: Grifols issued €1.3 billion in bonds and extended its revolving credit facility, significantly improving liquidity to €1.7 billion proforma for Q3 2024 while addressing 2025 maturities.
• Activist Shareholder Pressure: Hedge funds, including Flat Footed, continue to push for governance reforms, citing conflicts of interest and value destruction involving the Grifols family and board member Tomás Dagá.
• Valuation Opportunity: Grifols trades at a high discount to peers, with upside potential based on its strong market position in plasma therapies, EBITDA recovery, and margin expansion post-COVID.

• Accolade’s recent earnings disclosure offers a comprehensive perspective on its current market positioning and performance, highlighting several important facets relevant to understanding its investment potential.
• The company, which focuses on healthcare advocacy and personalized solutions, detailed its second-quarter fiscal 2025 results, underscoring both areas of confidence and concern for investors.
• Accolade reported quarterly revenue of $106.4 million, exceeding its guided range.

• Canadian healthcare software company offering software solutions for health and human service providers
• Focus on simplifying user experience and optimizing outcomes through comprehensive suite of software-as-a-service solutions
• Expanding internationally, with a focus on UK market and potential entry into European and US markets in the future

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.

• IHH Healthcare (IHH MK) reported 3Q24 revenue and EBITDA growth of 10% and 7%, YoY, respectively, after adjusting for hyperinflationary economy, driven by sustained demand and healthy case-mix.
• Malaysia and Türkiye and Europe reported double-digit revenue growth, while EBITDA margin declined in both markets. Singapore is facing temporary margin pressure. India operation remained stable.
• IHH has added ~1,000 beds in Malaysia and India, which should further drive growth. With growing healthcare needs both locally and globally, IHH Healthcare is confident of its trajectory.

• Thermo Fisher Scientific’s third-quarter results of 2024 demonstrated robust financial performance amid a challenging environment, driven by a mix of solid core business operations and strategic initiatives.
• The company reported quarterly revenue of $10.6 billion with an adjusted operating income amounting to $2.36 billion, reflecting an adjusted operating margin of 22.3%.
• The adjusted earnings per share (EPS) was reported at $5.28, underscoring their capacity to generate consistent shareholder value.

• Henry Schein’s third quarter 2024 earnings reflect a blend of strategic advancements and ongoing recovery efforts from prior challenges.
• The company reported global sales of $3.2 billion, marking a modest overall growth of 0.4% year-over-year.
• A significant contributor to this growth came from acquisitions, which added 3.2% to sales, although local currency internal sales slightly decreased by 2.6%.

• Revenue increased to JPY17.7bn (+5.2% YoY) due to subscriber growth in D2C and BPO services expansion.
• Extraordinary losses included JPY829mn in impairment losses and JPY140mn for financial statement correction costs.
• FY05/25 forecast: Revenue JPY21.0bn (+18.5% YoY), EBITDA JPY500mn, net loss JPY490mn to JPY290mn.

• NAMS’ obicetrapib is a promising drug targeting high cholesterol and cardiovascular disease risk reduction
• Potential FDA approval expected in 2027, despite previous failures of similar CETP inhibitors
• NAMS stock is undervalued, with potential for significant growth, warrant expiration after cardiovascular outcomes data in late-2026.

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.

• CytoSorbents is commercializing its E.U. approved CytoSorb blood purification technology to treat life-threatening conditions in the intensive care unit and cardiac surgery.
• The company also seeks U.S. and Canadian approval of a second product, DrugSorb-ATR, to reduce perioperative bleeding risk in patients on blood thinners during cardiac surgery.
• Based on the results of its pivotal U.S. and Canadian STAR-T trial, the company submitted for FDA De Novo approval on September 27, 2024, and Health Canada on November 1, 2024, with regulatory decisions expected in 2025.