![](https://wp-static.smartkarma.com/../assets/uploaded/2023/08/Smartkarma-Insight-Card-Square.png)
Daily Brief Health Care: GUPPY’s Inc, Genetron Holdings Ltd, China Resources Pharmaceutical and more
In today’s briefing:
- GUPPY’s (5127 JP): Medley (4480 JP) Tender Offer at JPY3,250
- Genetron (GTH US): Wide Spread Ahead of the 21 February Vote
- China Healthcare Weekly (Jan.19) – Bottom Fish A-Share?/“Style” of FDA/Pharma’s Key Benchmark/3320HK
![](http://www.smartkarma.com/assets/plugins/a3-lazy-load/assets/images/lazy_placeholder.gif)
GUPPY’s (5127 JP): Medley (4480 JP) Tender Offer at JPY3,250
- GUPPY’s Inc (5127 JP) has recommended Medley (4480 JP)’s tender offer of JPY3,250 per share, an 81.0% premium to the undisturbed price (19 January).
- The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 10.19% ownership ratio.
- Despite the premium, the offer is light vs the IFA DCF valuation. Based on the irrevocables, the minimum acceptance condition requires a 23.4% minority acceptance rate, which is achievable.
Genetron (GTH US): Wide Spread Ahead of the 21 February Vote
- Genetron Holdings Ltd (GTH US) shareholders will vote on the consortium’s US$4.08 per ADS offer on 21 February. The offer is light in comparison to historical trading ranges.
- Completion is conditional on shareholder approval, dissenting shareholders representing less than 15% of outstanding shares and regulatory approvals (NDRC, MoC and SAFE).
- Despite the light offer, the completion conditions should be met. At the last close price and end of March completion, the gross and annualised spread is 7.7% and 45.5%, respectively.
China Healthcare Weekly (Jan.19) – Bottom Fish A-Share?/“Style” of FDA/Pharma’s Key Benchmark/3320HK
- As more and more China’s drugs successfully obtained FDA approval, we analyzed the “style” of the US FDA, aiming to help investors understand the prospects of domestic companies’ internationalization strategies.
- For mature pharmaceutical companies, we analyzed the benchmarks for some key financial indicators in terms of both revenue and cost. On these basis, companies’ profit performance would be decent.
- As a top pharmaceutical SOE, China Resources Pharmaceutical (CRP) wouldn’t go bankrupt.This is the bottom line.Together with stable dividends, CRP is a worthwhile investment target to hold in bear market.