Healthcare

• 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.

• 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.
• In this note, we talk about the company’s historical performance.

• The company recorded a significant decline in operating losses in Q1-2 FY3/25, driven by reductions in R&D and Head Office costs.
• Sales growth was relatively low at 1.9% YoY, with 18.9% growth YoY in the Americas driven by the Treatment service segment offsetting declines in other regions.
• The Medical HAL Lower Limb Type saw 6.1% rental sales growth YoY, with Japan seeing the strongest growth at 12.3% YoY. 

• Grace is a clinical-stage, biotechnology company focused on rare disease.
• Its lead program, GTX-104, is a novel injectable formulation of nimodipine for the treatment of aneurysmal subarachnoid hemorrhage (aSAH).
• Other programs include GTX-102 for Ataxia Telangiectasia & GTX-101 for postherpetic neuralgia.

• Inventurus Knowledge Solutions (IKSINCD IN) is looking to raise up to US$295m in its upcoming India IPO.
• IKS is a technology-enabled healthcare solutions provider, assisting physician enterprises in US, Canada and Australia. It is a one-stop shop designed to handle physicians administrative tasks.
• In this note, we look at the firm’s past performance.

• Medtech focused on obstructive sleep apnea (OSA) treatment.
• Vivos commercializes proprietary oral appliances and support services for the treatment of OSA and associated conditions of dentofacial abnormalities, including snoring, temporomandibular joint dysfunction (TMD), and bruxism.
• The company’s Complete Airway Repositioning and/or Expansion (CARE) oral devices are patient preferred over market-leading CPAPs and have key FDA clearances that provide a competitive advantage over other oral appliances.

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• Reently-Listed Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), and Intermestic (262A JP) were added to the TOPIX index at the end of November 2024.
• Our long-term pre-event candidate Japan Eyewear Holdings (5889 JP) has applied for a Section Transfer to the Prime Market which means there could be TOPIX Inclusion in the near future.

• Innova Captab (1605221D IN)’s New Jammu facility to be commercialized by Q3 FY25, expanding capacity and product range.
• Strong order pipeline, diversified segments (CDMO, branded generics), and high-margin segments to drive profitability.
• Aiming for 25-30% revenue CAGR and 4-5% margin expansion in upcoming years.

• Blueprint Medicines Corporation, during its third quarter of 2024 financial results presentation, highlighted both promising developments and ongoing challenges.
• The company reported robust revenue growth, primarily driven by the performance of AYVAKIT, which achieved $128.2 million in net product revenue, marking a 137% year-over-year increase.
• This strong performance led the company to raise its annual revenue guidance to between $475 million and $480 million, positioning AYVAKIT on track for substantial long-term revenue, potentially exceeding $2 billion.

• Bio-Rad Laboratories, Inc. presented a mixed set of results for the third quarter of 2024, reflecting ongoing challenges and some positive developments across its business segments.
• The company reported net sales of $650 million, a 2.8% increase from the previous year on a reported basis, attributed largely to its Clinical Diagnostics segment.
• On a currency-neutral basis, sales increased by 3.4% year-over-year, driven primarily by a 6.4% increase in the Clinical Diagnostics group led by strong demand for quality control products, especially in the Asia Pacific region.

• The IPO of SAI Life Sciences, a contract research, development, and manufacturing organization,  is scheduled to open on December 11. The IPO consists of fresh issue as well as OFS.
• Out of the fresh issue of proceeds, the company intends to use INR7.2B for repayment/prepayment of outstanding borrowings. As of September 30, 2024, total outstanding borrowing stands at INR7.6B.
• We have high conviction on the growth prospect of SAI Life Sciences. Considering FY25 annualized post-IPO EPS of INR2.69, the company seeks a P/E valuation of 186.9–203.8x. 

• After a stunning YTD performance (up 90.68% as of 12/9/24 vs MEXBOL 9.05% down), we continue to see solid upside ahead.
• Market conditions for most of the company’s segments are expected to remain mostly favorable, with FX remaining a neutral-to-positive factor amid its MXN-denominated costs.
• From a valuation perspective, the company used to trade at higher levels —even in the double-digit EV/EBITDA range— some years ago.

• Based on the new announcement released by CR Sanjiu, due diligence, auditing, evaluation, valuation and verification of material assets reorganization are in progress. Approvals by the SASAC/SAMR haven’t been obtained.
• Sanjiu is now facing performance headwinds due to VBP. So, Sanjiu needs new/stable performance increments to alleviate future performance pressure, and completing the acquisition of Tasly becomes even more urgent.
• China Resources excels in M&As and has strong internal business integration capabilities.We’re optimistic about the future synergies after the merger. Valuation for Tasly is expected to reach P/E of 30.

• CVC announced a voluntary public tender offer for CompuGroup Medical at €22 per share, a 33.5% premium, valuing the company at €1.13 billion equity value and 7.8x EV/EBITDA.
• The offer highlights CompuGroup’s strong position in healthcare IT, with 75% recurring revenues and growth potential in Ambulatory and Hospital Information Systems supported by digitization trends and AI innovations.
• The Gotthardts retain their 50.1%. CompuGroup’s board welcomes the strategic partnership and intends to recommend the offer, with plans to delist after completion in H1 2025. Spread is 1.36%/4.60% (gross/annualised).

• SCLX is filling a much-needed area of the health care sector, that of developing non-opioid pain relief products.
• The company already has commercialized products that are proven to improve patients’ lives.
• The company announced a deal with a developer of a Phase 2 drug with a large market potential to be the exclusive developer and have the right to commercialize the treatment targeting obesity and Alzheimer’s disease.

• Talkspace offers an asymmetric risk/reward opportunity in the defensive healthcare sector due to increasing demand for mental health care
• The company has a strong balance sheet with significant net cash balance, recent profitability, and is expected to grow revenue by 20% annually
• With limited downside risk and potential for substantial upside, particularly in their B2B business, Talkspace presents an enticing investment opportunity with minimal direct-to-consumer exposure

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.

• Fosun Pharma is just “a platform” and its performance mainly relies on the contributions of subsidiaries. However, such investment-driven business model has led to the current performance difficulties.
• Although the motivation/underlying logic for Fosun Pharma to privatize Henlius are solid, we don’t know how this privatization ranks in terms of strategic significance of capital operations within Fosun’s system.
• If, for example, Fosun Pharma finds more important acquisitions/capital expenditures, the priority of Henlius’ privatization could fall. So, we think if it takes too long, there may be more uncertainties.

• ASKA Pharmaceutical Holdings represents an attractive investment opportunity with substantial upside potential
• The company combines solid growth, strong profitability, and clear avenues for shareholder value enhancement.
• With Nippon Active Value’s increasing involvement and the stock trading at deeply discounted valuations, ASKA is well-positioned for a re-rating.

• CEL-SCI is developing two platforms: Multikine and LEAPS.
• Multikine has completed a Phase 3 trial for head and neck cancer while LEAPS is conducting preclinical studies for RA, Pandemic Flu and breast cancer.
• In June 2021, CEL-SCI reported selected data from its IT-MATTERS trial demonstrating a benefit in the low PD-L1, non-chemotherapy population.

• On December 5, 2024, MediciNova, Inc. (MNOV) announced a study update and interim analysis from the Phase 2b/3 COMBAT-ALS trial were scheduled to be presented at the 35th International Symposium on ALS/MND.
• As of Nov.
• 15, 2024, 217 participants had been enrolled and 183 participants were assigned to either MN-166 or placebo.

• NurExone (OTC-NRXBF) is a preclinical stage biotech company that is developing a breakthrough treatment for spinal cord injuries that has the potential to dramatically improve lives.
• The technology involved also has the potential to more efficiently get other treatments to the needed area.
• The company is also expanding its potential treatments with ExoPTEN and announced preclinical results that showed promise in repairing optic nerve damage.

• CAR Group (CAR AU) replaces Dexus Property (DXS AU) in the S&P/ASX50 Index and Clarity Pharmaceuticals Ltd (CU6 AU) replaces Spark New Zealand (SPK AU) in the S&P/ASX200 (AS51 INDEX).
• Dexus Property and Spark New Zealand were deleted from a global index a couple of weeks ago, so this will heap further pressure and increase the real float of the stocks.
• There has been an increase in cumulative excess volume for all changes, but positioning in some stocks may continue post the announcement.

• Paradigm Biopharmaceuticals (PAR AU) has requested a trading halt to the ASX pending an announcement in relation to a capital raising. Normal trading will resume on Monday, December 9, 2024.
• Assuming quarterly cash burn rate of A$7M, Paradigm’s cash balance should provide a runway through mid-Q3FY25. The company is in a dire need to raise fund.
• With lead drug being in late-stage trial and having huge market potential, Paradigm seems to be an attractive biotech investment opportunity. Recently, optimism is growing surrounding Paradigm’s lead drug candidate.

• Intuitive Surgical, Inc. reported robust third-quarter financial results for 2024, reflecting both significant positive developments and some areas of challenge.
• The company demonstrated strong global growth in its key product lines, particularly the da Vinci systems, which is central to its operation.
• On the positive side, Intuitive displayed robust procedure growth at 18% year-over-year, with contributions especially strong in the U.S., Japan, Germany, France, and the U.K. Notably, the introduction of the da Vinci 5 system, which launched in March 2024, saw promising early adoption with 188 installations and over 12,000 procedures completed.

• Certara’s latest quarterly earnings reveal a mixed set of financial and operational conditions that provide both promising prospects and certain challenges.
• The company reported third-quarter revenue of $94.8 million, an 11% year-over-year increase.
• This was bolstered by a 13% rise in total bookings, signaling a steady demand for Certara’s biosimulation services in the global drug development industry.

• Innovent did a good job in 24Q3. The 2024 full-year revenue is estimated to reach above RMB8 billion. Peak sales to reach the level of RMB20 billion is entirely possible.
• It’s a mistake for Innovent to sell a minority stake in Fortvita to Lostrancos. Alhough the Subscription Agreement has been terminated, the confidence in long-term holding this stock has decreased.
• Innovent’s internationalization needs to be based on the parent company as the main body, which is the most suitable and in line with the interests of shareholders/investors/management/employees of the Company.

• The Medical Insurance Bureau of Hubei Province issued two documents on the VBP of TCM patent medicines.Shineway’s core product Qing Kai Ling is included, which would bring pressure on performance.
• It’s time to be cautious about the outlook for GLP-1s. We may need to be mentally prepared in advance that the actual market size of GLP-1s is only US$100 billion.
• Recent changes at the top of CNPGC have left some investors hopeful that China TCM will resolve horizontal competition as scheduled next year,but current bet on shares reversal isn’t wise.

• MDV revised down its full-year FY24 guidance (discussed in more details on p.5) given the Q3 result [Q1~Q3 gross profit [GP] of ¥3,055mil (-12.8% YoY), operating loss of -¥140mil (vs FY23 Q3 OP of ¥1,111mil) on sales of ¥4,125mil (-8.1% YoY)], due to (1) the delay to the onboarding of the firm’s cloud-based health check system solution Alpha Salus as the debugging process continued through to September, and (2) a delay in mobilising potential users of the new content (no-contact vital sensing for cats) for MDV’s personal health management app Karteco, as the planned large-scale advertising campaign was pushed back following a delay in the launch of the content.
• The firm is guiding for FY24 annual dividend of ¥6.5/share (unchanged from FY23) and generates a dividend pay-out ratio of 138.0% based on the revised FY24 EPS forecast of ¥4.71.

• Janux Therapeutics has taken the biopharmaceutical industry by storm with its recent announcement of groundbreaking results from its Phase 1 clinical trial of JANX007, a tumor-activated T-cell engager targeting advanced prostate cancer.
• The data reveals a stunning 100% PSA50 response rate among heavily pretreated patients, with 63% achieving PSA90 and 31% achieving PSA99—a significant milestone in prostate cancer treatment.
• The company has prioritized the development of second- and third-line therapies for metastatic castration-resistant prostate cancer (mCRPC), aiming to address a substantial unmet need in oncology.

• Electromed is a debt-free micro-cap medical device company specializing in HFCWO airway clearance products for home use
• With $16.2 million in cash on hand, the company is growing revenue and profitability, attracting shareholder activists
• Flagship product, SmartVest® Airway Clearance System, offers comfortable, easy-to-use device; direct-to-patient model streamlines referral process, insurance claims, product delivery, and training

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.

• Incyte Pharmaceuticals has been the center of takeover speculation recently, with its stock rallying amid whispers of a potential acquisition.
• Investors are abuzz with the possibility of a major pharmaceutical player eyeing Incyte for its innovative pipeline, robust revenue growth, and established commercial products.
• In the third quarter of 2024, Incyte delivered strong financial results, including a 24% increase in total revenues, driven by its blockbuster drug Jakafi and rapid growth in Opzelura sales.

• Lexaria is a biotechnology company seeking to enhance the bioavailability of multiple drug agents using DehydraTECH (DHT), its technology using oral and topical delivery.
• It combines lipophilic APIs with specific fatty acid and carrier compounds followed by dehydration.
• DHT offers several attractive features: substantial improvement in bioabsorption in terms of time to measurable plasma levels & AUC, brain permeation, taste masking & side effect reduction.

• Kronos Bio’s NAV is estimated at $1.39/share, 48% above current price, with strategic review ongoing for sale/reverse merger.
• Significant insider ownership includes 14.7% by ex-CEO Norbert Bischofberger and 5.8% by chairman Arie Belldegrun.
• Kronos Bio’s partnership with Genentech offers potential milestone payments, but no compounds identified for further development.

• Key regional partner for Veldona; a good start for Ainos’ out-licensing strategy.
• Ainos entered a strategic partnership with Taiwan Tanabe Seiyaku for Veldona in Sjogren’s syndrome.
• Under a memorandum of understanding (MOU), the collaboration aims to advance Veldona development by leveraging Taiwan Tanabe’s established expertise in drug manufacturing and Taiwan market promotion. 

• On November 18, 2024, NeuroBo Pharmaceuticals, Inc. (NRBO) announced a strategic realignment with a name change to MetaVia Inc. (MTVA).
• The change became effective on November 29, 2024.
• We are republishing the latest research report under the MTVA ticker.

• Telomir Pharmaceuticals is a preclinical stage company focused on the science of lengthening telomere caps, which the company believes will extend human lifespans and improve quality of life as people age.
• Preclinical tests showed that the company’s signature therapy, Telomir-1, appeared to address insulin resistance and achieving reversal to near pre-diabetic levels.
• These results add to previous testing results showing a myriad of potential life improving and extending benefits.

• Volition’s Nu.Q Vet Canine Cancer Screening Test now available in 17 countries, particularly by Antech on its Element I+ diagnostic point-of-sale platform (in the U.S., Europe, Australia, India & Singapore) and by Fujifilm Vet Systems (Japan).
• A Data Room that contains all clinical studies and other data related to Capture-PCR (human cancer detection method) and Nu.Q NETs for human sepsis has been set up to support licensing discussions and negotiations with interested parties.
• Research continues on developing biomarkers for multiple cancers in proof of concept studies.

• Agilent Technologies, Inc. recently reported its fourth quarter results for fiscal year 2024.
• The company generated revenues of $1.701 billion, marking roughly 1% growth in reported figures, with core growth remaining flat despite challenging market conditions.
• Notably, Agilent’s total company book-to-bill ratio exceeded one, indicating a steady market recovery and positioning for continued improvement into 2025.

• Japan Lifeline [JLL] produced historical semi-annual earnings with FY24 1H OP of ¥6,260mil (+14.4% YoY) on sales of ¥27,985mil (+11.4% YoY), which landed above expectation.
• Despite this robust performance, JLL has not revised its full-year FY24 guidance as the 2H presents with several potential earnings risks such as 1) fewer operating days, which will impact device sales, 2) an increase in outsourced products reducing GPM, 3) the possibility of a change in the competitive landscape for one of JLL’s core products.
• The company’s shareholder return policy is the higher of (1) a pay-out ratio of 40% or (2) a Dividend on Equity [DOE] of 5%.

• On November 26, 2024, Arrowhead Pharmaceuticals, Inc. (ARWR) announced a global licensing and collaboration agreement with Sarepta Therapeutics (SRPT) in which Arrowhead will receive $825 million on closing, consisting of a $500 million upfront payment and $325 million as an equity investment priced at a 35% premium.
• The agreement includes four clinical stage products (ARO-DUX4, ARO-DM1, ARO-MMP7, ARO-ATXN2), three preclinical programs (ARO-HTT, ARO-ATXN1, ARO-ATXN3), and during the five-year term of the agreement Sarepta can propose up to six new CNS or muscle targets, with Arrowhead responsible for discovery and preclinical development.
• This deal further validates Arrowheads technology and provides capital to fund operations into 2028.

• BioLineRx is a commercial stage biopharmaceutical company with a development portfolio advancing motixafortide, a platform molecule targeting indications in stem cell mobilization (SCM) & in the treatment of advanced pancreatic cancer.
• The candidate is approved in the US for SCM and is undergoing studies for use in gene therapy and in pancreatic cancer.
• Partner Gloria Biosciences is developing motixafortide in Asia & is expected to be conducting bridging studies in the near term for SCM & longer-term studies for other indications.

• Lantheus is a leader in radiopharmaceutical offerings in oncology & precision diagnostics.
• It offers a portfolio of diagnostic & therapeutic products directly & via partnerships & licensing.
• The primary revenue driver is Pylarify, a PET tracer for PSMA-expressing prostate cancer.

• On October 16, 2024, Tonix Pharmaceuticals Holding Corp. (TNXP) announced that it submitted the New Drug Application (NDA) for TNX-102 SL for the treatment of fibromyalgia.
• The NDA is supported by the results of two Phase 3 clinical trials that reported statistically significant results on the primary endpoint of reducing widespread pain.
• The FDA typically has a 60-day filing review period to determine whether the submitted NDA is acceptable for review.