Healthcare

• 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.

• At a 4.6 FPE, you would expect to find some real concerns, however there are no gremlins anywhere?  
• What you are buying is an antibiotic developer and distributor who is performing better than expected, given that the antibiotic market is thriving.
• The extensive pipeline including GLP-1 drugs is still at an early stage/midway through development, however at this valuation, you are probably not paying for it!

• The growth factor drug market is highly competitive. Many competing products have been on the market for many years with NRDL reimbursement coverage and also accumulated rich recognition from doctors/patients.
• Even if Pro-101 is approved for market launch, B&K may have to reduce its price largely and invest heavily in market education/promotion. B&K’s commercialization capability still needs to be verified.
• Valuation of B&K would be lower than peers. It is hard for B&K to receive expected valuation premium since its latest round of post investment valuation is already RMB3.3 billion.

• Mack885 identified buying opportunity in ALDX due to management’s plan to address FDA setback
• Perceptive Advisors increased stake in anticipation of reproxalap approval for dry eye disease
• Potential option agreement with AbbVie could greatly benefit ALDX financially, making its share price undervalued

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.

• On July 9, 2024, Soligenix, Inc. (SNGX) announced positive interim results for HyBryte in an open-label, investigator-initiated study in patients with early-stage cutaneous T cell lymphoma (CTCL).
• Of the patients that have completed 12 weeks of therapy, 3 of 4 (75%) have achieved “Treatment Success”, which is defined as =50% improvement in their cumulative mCAILS (modified Composite Assessment of Index Lesion Severity).
• Two patients have not reached their first efficacy evaluation visit (i.e., at Week 6) and the last patient had a substantial improvement documented by Week 18 but had not yet achieved the success threshold.

• On July 8, 2024, BrainStorm Cell Therapeutics, Inc. (BCLI) conducted a mid-year conference call to provide an update on the status of the company’s NurOwn program.
• During the call, the company reiterated that it is committed to conducting a Phase 3b trial of NurOwn in patients with amyotrophic lateral sclerosis (ALS) to support a potential Biologics License Application (BLA) filing.
• BrainStorm has reached agreement with the FDA on a Special Protocol Assessment (SPA) and the CMC aspects of the upcoming Phase 3b trial.

AFT Pharmaceuticals continues to make inroads in expanding its strategic market footprint. Most recently, it announced the entry into China with the distribution of Crystaderm (approved by Chinese regulators in November 2023) through an agreement with Hainan Haiyao Co. We expect this to provide AFT with access to China’s offline retail and hospital segments, which represent roughly 75% of the country’s OTC market, a significant bump from AFT’s current Chinese e-commerce presence. This announcement comes on the heels of the news on Maxigesic Rapid securing a non-exclusive distribution partnership in the US with Alexso, a specialist distributor focused on non-opioid pain-management products. Given the notable size of both the US and Chinese markets, we expect these new market launches (both expected within CY24) to support top-line traction internationally.

Immix has announced that the first patient has been dosed in its Phase Ib NEXICART-2 trial of lead CAR-T asset NXC-201, which took place at lead study site, the Memorial Sloan Kettering Cancer Center. This US-based study will evaluate the safety and efficacy of NXC-201 in approximately 40 patients with relapsed/refractory amyloid light chain amyloidosis (r/r ALA). Management expects the trial to be fully enrolled within 18 months, implying that top-line results could be available in H126. In the near term, we anticipate rolling data readouts as seen with the prior NEXICART-1 trial. We also expect more details for the expansion of NXC-201 into additional autoimmune indications by the end of 2024.

• Emcure Pharmaceuticals raised around US$240m in its India IPO. Subscription rates were strong.
• Emcure Pharmaceuticals (EP) is an Indian Pharmaceutical company engaged in the developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.
• We have looked at the company’s past performance in our earlier note. In this note, we talk about the trading dynamics.

• The company announced a settlement with its subsidiary of 18 mn HKD. This is material as we estimate that core profit for FY24 (June-end) would be 30-35 mn HKD. 
• This settlement will be paid in cash (tranches) as it involves making the company whole on a vendor’s profit guarantee shortfall. It boosts cash and investments >340 mn HKD. 
• The stock is cheap, with net cash almost equal to the market capitalization, an 11x PE (on core profit), and a 9% dividend yield. 

• EC Healthcare (2138 HK) reported muted FY24 result. While revenue increased 9% YoY to a record high of HK$4.2B, EBITDA and net profit declined 10% and 85%, YoY, respectively.
• The reopening of borders saw a slower-than-anticipated recovery in revenue from Chinese Mainland medical tourism. The prevailing high interest rate, inflationary pressure, and economic uncertainties have made the operations challenging.
• EC Healthcare shares plunged ~70% over the last one year. Although the company has long-term growth drivers and margin levers, there is short-term uncertainties over financial performance improvement.

• New Horizon Health is a “big client” of Deloitte, who, however, still delay the publication of 2023 results. This leads us to take the issues raised by Deloitte more seriously.
• It’s uncertain whether New Horizon Health would obtain the audit report with non-qualified opinion or “survive” the independent investigation.2023 Annual Report/2024 Mid-Year Report/2024 Annual Report may continue to be postponed.
• If New Horizon Health fails provide reasonable explanation, investors don’t need to spend any more time on the Company with no integrity.We forecast the timetable for the resumption of trading.

Oryzon Genomics continues to fortify its IP profile for vafidemstat, which is being developed for borderline personality disorder (BPD) and for the potential application to attention deficit hyperactivity disorder (ADHD). Oryzon has received positive acceptance decisions for two incremental patent applications from the Japanese Patent Office (JPO), which should provide protection until 2040 (excluding potential extensions). Oryzon was also notified of similar patent grants from the European and Korean patent offices, which may extend the drug’s exclusivity in those jurisdictions. Oryzon is advancing its lead CNS asset towards an end-of-Phase II (EoP2) meeting with the FDA to discuss a potentially registrational Phase III trial in BPD. Vafidemstat already holds composition of matter patents in the US and EU providing protection up to 2037 and 2036, respectively.

• BioNTech’s First Quarter 2024 Earnings Call highlighted a strategic focus on their late-stage oncology pipeline and continued initiatives surrounding their COVID-19 vaccine offerings.
• The company’s advancement in multiple pivotal Phase III clinical trials, primarily in oncology, and preparation for upcoming new strains of COVID-19 vaccines suggests a pivotal transformation period.
• Positively, BioNTech’s progression in oncology is notable with its comprehensive approach of integrating multiple therapeutic solutions.

• In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes for the Hang Seng Index in September 2024.
• The index changes for the September 2024 index rebal will be announced on 16th August 2024.
• The HSI selection process is highly subjective and does not follow clear-cut rules. This insight is simply an attempt to provide readers with an overall understanding of the possible scenarios.

• Haw Par Corp (HPAR SP), with a rich investment portfolio and an attractive consumer health care business, trades at 4% dividend yield but at a steep discount to SOTP value.
• The recent rise in share price of UOB (UOB SP) , where it holds a 4.5% stake, has widened this discount.
• We believe the management can unlock immense value for share holders by de-merging the consumer healthcare business and publicly listing it.

• Grifols’ founding families and Brookfield ask the Board for the necessary information to evaluate an offer for 100% of Grifols SA (GRF SM). The CNMV has halted trading in the shares.
• Grifols is worth €5.5 billion, after plummeting 39% in 2024. The deal smacks of desperation from the founding families, worried not to lose control of the company to debt holders. 
• There should be a minimum premium to guarantee offer success, at least 15% to current share price (maybe even 30%). B shares are protected in case of takeover.

• Kelun Biotech (KB) raised around US$170m in its IPO in July 2023, the lockup on its pre-IPO shareholders is set to expire soon.
• KB is a China-based integrated innovative biopharmaceutical company. It has accumulated more than ten years of experience in antibody drug conjugates (ADC) development.
• In this note, we talk about the upcoming lock-up expiry and possible deal dynamics.

• On June 27, 2024, X4 Pharmaceuticals, Inc. (XFOR) announced positive interim results from the company’s ongoing Phase 2 trial of mavorixafor in patients with chronic neutropenia (CN).
• The data showed that treatment with mavorixafor, as either a monotherapy or in combination with granulocyte colony-stimulating factor (G-CSF) was generally well tolerated and led to durable increases in patients’ absolute neutrophil counts.
• The company also announced that it has begun screening patients for enrollment into the Phase 3 clinical trial of mavorixafor in people with congenital, acquired primary immune, or idiopathic CN who are experiencing recurrent and/or serious infections.

• Biora is a drug-device company developing smart pills for GI diseases and enabling oral delivery of biologics.
• Its pipeline features two assets: NaviCap, for targeted drug delivery in GI diseases & BioJet, for oral delivery of biologics.
• NaviCap’s BT-600 trial has reported its SAD & MAD topline & will advance to a Phase Ib. BioJet is on the cusp of a deal & may advance into the clinic through the efforts of pharma partners.

• Revelation Biosciences is a life sciences company whose development of immunologic-based therapies is based on the well-established biology of phosphorylated hexaacyl disaccharide (PHAD) and its effect on the innate immune system.
• The company announced data from its Phase 1 clinical study of its Gemini treatment.
• These results were extremely positive and represent a major step forward for Revelation.

• Depending on how long it takes medical venues to review the Hemopurifier data & potentially approve moving forward, we believe clinical efforts could begin in 2H24.
• AEMD had cash of about $9.1M as of June 25, 2024, to support its efforts, following a recent capital raise.
• The company also believes it has a sufficient supply of Hemopurifiers for its planned oncology trials.

• 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), A8 New Media (800 HK), Greatview Aseptic Packaging (468 HK), Asia Cement China (743 HK). 
• Lowest spreads: Fancl Corp (4921 JP), Great Eastern Holdings (GE SP), Chilled & Frozen Logistics Holdings (9099 JP), Tatsuta Electric Wire & Cable (5809 JP), Kfc Holdings Japan (9873 JP). 

• Fosun’s preferred arrangement for Henlius is to list the Company in A-shares.Since IPO in A-shares failed and Henlius has begun to generate profits, Fosun finally feels the need for privatization.
• Due to its “flaws”, undervaluation of Henlius in the Hong Kong stock market is difficult to fundamentally change. So, for conservative/cautious investors, Fosun’s one-time acquisition at a 30% premium is attractive.
• The Potential Share Alternative Offer seems a good option, but it is uncertain whether investors are still willing to believe in Fosun’s “good story” – the future re-listing is uncertain.

• Clinuvel Pharmaceuticals (CUV AU) released positive update from its CUV151 study, which was evaluating the DNA-repair capacity of afamelanotide on skin of healthy volunteers exposed to UV radiation.
• Riding on high trajectory of lead therapy, Scenesse, thanks to the prescriber network growth, treatment demand, and number of prescriptions, Clinuvel has been consistently reporting profitable revenue growth.
• Greater patient outreach to be facilitated by more specialty centers able to administer Scenesse in the U.S., expanding geographic footprint, and future label expansions are future growth engines.

• For all licensing cooperation with MNCs, we recommend that investors wait to see what MNCs’ next move is before deciding whether the cooperation is really promising.
• Topchoice showed good business growth in 24Q2. Our biggest concern for Topchoice is that the unit price per customer may further decrease in the future, thereby affecting revenue/profit growth.
• Junshi’s sales growth picked up in 24Q1, but concerns on Junshi persist. We don’t think Junshi is undervalued and its valuation should be lower than that of peers.

• The Pennant Group has shifted its revenue mix towards Home Health and Hospice, reducing exposure to oversupplied Senior Living segment
• With a more manageable leverage ratio and lower stock price, PNTG is now trading at around 10x consensus NTM EBITDA
• Well-positioned to benefit from aging population and increasing demand for value-based home care services post-pandemic, offering opportunity for growth in senior living market.

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.

• On 2 July 2024, nursing care operator SUNWELS Co (9229 JP) announced a sale of Treasury shares and newly-issued shares, and with it, a move to TSE Prime (therefore TOPIX)
• The stock, of course, popped. The stock starts with VERY low float because the CEO and his company own 64% of shares out ex-treasury. 
• The offering is much larger than the TOPIX inclusion, so this is really more about the growth story.

• IHH Healthcare (IHH MK) reported highest ever quarterly revenue in 1Q24, with double-digit growth across key metrics. 1Q24 revenue increased 16%, while EBITDA grew at a faster pace of 19%.
• Favorable patient mix, which was inclined to more acute and complex patients and price adjustments to counter inflation drove the growth. 1Q24 EBITDA margin (22.9%) improved from year-ago quarter (22.3%).
• The company expects favorable tailwinds from secular trends in its core markets, which will underpin longer-term growth. IHH is on track to add ~4,000 beds (+33% capacity) by 2028.

• Inspired Medical Systems First Quarter 2024 performance showcases a robust growth trajectory alongside strategic market advancements and impending innovations.
• The company reported a notable increase in revenue, which reached $164 million, marking a 28% year-over-year growth.
• This uplift was primarily driven by enhanced penetration in existing markets and expansion into new territories, both domestically and internationally.

• Exelixis reported its first quarter 2024 financial results, underlining continued progress in its business across several fronts.
• The company, known for its cabozantinib franchise, saw a modest growth in revenues, driven by sustained demand and expansion in the U.S. and global markets.
• Additionally, Exelixis advanced in its pipeline development and corporate developments, maintaining a robust focus on enhancing standard of cancer care and providing value to shareholders.

• CVRx (CVRX US)’s Barostim, is the only neuromodulation device designed to treat heart failure and resistant hypertension. We see CVRX as a buyout target. 
• Growth will be driven by growing elderly population, and rising rates of diabetes and hypertension putting more people in cardiac decline.
• Trials suggest that Barostim is a cost-effective treatment, quality of life improving therapy when compared with traditional optimal medical management in patients with resistant hypertension.

• Intra-Cellular Therapies announced a robust performance in the first quarter of 2024, demonstrating notable advances in both the commercial and clinical realms.
• The company reported a significant rise in total revenues, reaching $144.9 million with CAPLYTA net sales alone accounting for $144.8 million, reflecting a 53% growth year-over-year.
• This growth trajectory reaffirms the drug’s strong market acceptance and penetration within its approved indications for bipolar depression and schizophrenia.

• Masimo Corporation reported its first quarter 2024 results with both encouraging and modest aspects.
• The company achieved a consolidated revenue of $493 million with healthcare revenues at the high end of guidance at $340 million, representing a 2% decline compared to the previous year.
• This figure aligns with the challenging comparison against the prior year’s performance, particularly in a period following intense COVID-19 related activities.

• The Ensign Group, Inc. reported notable financial results for the first quarter of fiscal year 2024, demonstrating continued strong performance and growth across its portfolio.
• The company is well-known for operating a diverse array of subsidiaries that offer an array of health care services, including skilled nursing, rehabilitative care, and more, utilizing a unique business model of decentralized operations.
• On a positive note, the Ensign Group reported an increase in both revenue and earnings, attributing success to strong same-store occupancy and skilled mix.

• Encompass Health Corporation released its First Quarter 2024 earnings, showing a robust financial performance characterized by a 13.4% increase in revenue and a 19.2% rise in adjusted EBITDA.
• This performance has prompted the company to raise its full-year 2024 guidance, signaling a positive outlook based on the quarter’s results.
• The growth was primarily driven by an increase in total discharges and strategic initiatives, including the expansion into de novo hospitals and addition of inpatient beds.

• This is our first report on Option Care Health.
• The company reported a decent set of Fourth Quarter 2023 Earnings.
• They attribute a significant part of their growth to their commitment to offering innovative services aiming to improve patient outcomes and reduce costs.

• Shares of integrated private healthcare provider Raffles Medical Group (RFMD SP) are currently languishing around a three low. RMG does look attractive compared to regional healthcare plays. 
• FY23 numbers did no favours – top/bottom line y-o-y contraction of 14.1% and 37.1% respectively.  Yet its emerging China ops show promise. 
• Of interest is Loo Choon Yong, RMG’s founder and major shareholder, who continues adding to his stake, and now holds 54.944%, up from 53.033% at the beginning of the year.

• Emcure Pharmaceuticals is looking to raise around US$240m in its upcoming India IPO.
• Emcure Pharmaceuticals (EP) is an Indian Pharmaceutical company engaged in the developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.
• We have looked at the company’s past performance, in our earlier note. In this note, we talk about the RHP updates and take a quick look at valuations.

• On July 2, Eli Lilly & Co (LLY US) has received FDA approval for its Alzheimer’s disease drug Kisunla, which will compete head-on-head with Eisai Co Ltd (4523 JP)‘s Leqembi.  
• Efficacy and indications of both the drugs are similar. Price comparison is tricky. However, Kisunla can be stopped when amyloid plaques are removed, which is not the case for Leqembi.
• Eisai is not expected to face immediate competition and should comfortably meet Leqembi FY25 revenue target of ¥56.5B, including ¥43.5B from the U.S. Recently, Leqembi has been launched in China.

• Although UGenix is a genetic technology company focusing on prenatal testing/precision oncology, it was the large-scale COVID-19 testing demand that made UGenix’s overall revenue grow rapidly, which, however, is unsustainable.
• NIPT market size is far less than expected. The clinical need for NGS has not developed as rigid demand. Restrictions on companion diagnosis pricing indicate market space would be compressed.
• The business of both prenatal testing and precision oncology are not easy. Due to uncertain commercialization outlook/profitability and other negative factors, UGenix’s stock price after IPO could underperform.

• Roivant’s latest financial and business developments indicate both potential and challenges.
• The company reported a series of product updates and financial adjustments aimed at fostering growth and efficiency.
• Notably, Roivant’s executive team highlighted fiscal responsibility through renegotiations of Dermavant’s obligations, which are projected to reduce costs significantly.

• Stevanato Group’s first quarter 202rb performance underlined some critical challenges while also highlighting its robust positioning within the pharmaceutical supply sector.
• In a period marred by the ripples of the pandemic induced stockpiling, Stevanato Group’s revenue saw a slight decrement of 1% year-over-year, totaling EUR 236 million.
• This decline predominantly stemmed from the accelerated industry-wide destocking processes, particularly impacting their EZ-fill vials segment.

• Apellis Pharmaceuticals experienced a strong start to the first quarter of 2024, showing significant growth particularly through its product SYFOVRE, which demonstrated impressive market uptake and robust sales growth.
• SYFOVRE generated $137 million in net sales for the quarter, marking a 20% increase from the previous quarter.
• This increase predominantly stemmed from accelerated demand as the product solidified its position in the market.

• Vanda Pharmaceuticals Inc., in its Q1 2024 results, showcased a mixed performance amidst its transition phase collaborating its existing products along with recent acquisitions.
• The financial results reveal a decline in total revenues by 24% year-over-year to $47.5 million, primarily due to the impact of generic competition on its product HETLIOZ.
• Despite this, there was a slight sequential increase in total revenues from the previous quarter, suggesting some stabilization in their financial outcomes.

• Medpace’s financial results for the first quarter of 2023 highlight a mixed scenario, reflecting both the opportunities and challenges inherent in the clinical contract research organization (CRO) industry.
• The company reported that revenues reached $511 million for the quarter, marking a significant 17.7% increase on a year-over year basis.
• This positive trajectory can be attributed to healthy demand for Medpace’s clinical research services, as demonstrated by the growth in ending backlog which stood at approximately $2.9 billion—an increase of 18.2% compared to the previous year.

• Natera, Inc., during its Q1 2024 discussion, presented results that indicate robust financial and operational achievements alongside a renewed forward outlook reflecting the company’s strong position in the genomic diagnostics market.
• The company noted a significant increase in its revenue and volume growth across its diversified operational segments, which include oncology, organ health, and women’s health.
• Notably, Natera, Inc. achieved a major corporate milestone by reaching cash flow breakeven in Q1, significantly ahead of schedule.

• The slow progress of privatization is related to recent high-level changes in CNPGC. Decisions on SOE deals with “strategic purpose” require careful considerations, not based on “one leader’s personal preferences”.
• Based on public information, we cannot find convincing reason to prove that CNPGC has changed its mind.There’re rumors that China TCM’s privatization is still considered important project on the agenda.
• China TCM’s has strong fundamentals to support valuation. If there is no announcement, the privatization process is expected to proceed as usual, and we continue to wait for the voting.  

• In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in May and June 2024.
• On average, the share buyback announcements for the 13 companies that announced share buybacks in Korea represented 1.7% of outstanding shares.
• Major companies that have announced share buybacks in Korea in the past two months include Celltrion Inc (068270 KS), SK IE Technology (361610 KS), and NCSOFT Corp (036570 KS).

• On 2 July, ABL Bio (298380 KS) announced a capital raise worth 140 billion won. 
• The capital raise involves 5.77 million new shares (10.7% of outstanding shares post capital raise) at 24,229 won per share (current price is 24,150 won).
• The proceeds from the capital raise will be used to develop next-generation ADCs (Antibody Drug Conjugates), including bispecific antibody ADCs.

• Samsung Biologics (207940 KS) has signed the largest ever single CMO contract worth KRW1.46T ($1.1B) with an undisclosed U.S.-based pharmaceutical company. The contract value represents ~40% of 2023 standalone revenue.
• Within the first half of the year, Samsung Biologics has secured order worth of KRW2.6T, compared with order win of KRW3.5T in full-year 2023.
• Samsung Bioepis has received FDA approval for Stelara biosimilar Pyzchiva, which is expected to marketed in early 2025. So far, the FDA has approved two other biosimilars of Stelara.  

• Fresenius Medical Care, in its recent financial results, highlighted its commitment to continuing transformation and improvement across its segments.
• Initiatives to streamline organizational structures, enhance clinic utilization, and advance strategic growth areas, notably in value-based care, were emphasized.
• The company’s focus on optimizing manufacturing and supply chain processes is a critical element in its strategy to achieve margin improvements by 2025.

• Elanco Animal Health Incorporated has demonstrated a strong start to 2024 with positive developments in multiple areas of its business, despite facing some challenges.
• The company has achieved encouraging financial and operational results, underscored by success in its strategic initiatives aimed at enhancement and innovation.
• Starting with the financials, Elanco surpassed its revenue, adjusted EBITDA, and adjusted EPS guidance for Q1 2024, indicating robust underlying business performance.

• Ionis Pharmaceuticals commenced the year 2024 with notable strides, particularly through the launch of WAINUA in the U.S. This product, among others in the pipeline, is expected to lead the company towards a more independent operation in drug commercialization.
• The company’s executives displayed confidence in the potential of upcoming products like olezarsen and donidalorsen to transform their respective therapeutic areas and achieve market penetration based on strong clinical results.
• 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.

• Globus Medical recently disclosed its financial results for the first quarter of 2024, showcasing significant growth and strategic advancements post the integration with NuVasive.
• The company reported a remarkable 119% increase in sales, reaching $607 million, and a 36% rise in non-GAAP EPS to $0.72.
• This period marks the first quarter of the combined field organizations of Globus and NuVasive, underscoring a robust integration process aimed at streamlining operations and escalating market reach.

• DENTSPLY SIRONA reported its results for the first quarter of 2024, shedding light on both the advancements and ongoing challenges within its diverse portfolio.
• The company’s organic sales saw a slight decrease, declining by 1.9%, affected largely by lower sales in its Connected Technology Solutions (CTS) and Essential Dental Solutions (EDS) segments, although this was partially offset by growth in Orthodontic & Implant Solutions and Wellspect HealthCare.
• CTS notably faced headwinds due to unfavorable macroeconomic conditions and competitive pressures, particularly in imaging equipment.