Healthcare

• In Q3FY24, Asahi Intecc (7747 JP) reported 8% YoY increase in revenue to ¥26B, ahead of estimate of ¥24B, mainly driven by the exchange rate impact of higher foreign currencies.
• Higher SG&A expenses impacted the profitability. Q3FY24 operating profit margin declined to 23.3% from 26.6% in Q3FY23, while net profit margin decreased to 16.0% from 18.5% during the same time.
• In Q4FY24, revenue is expected to decline 3% YoY to ¥19.6B. Operating and net profits are anticipated to plunge 74% and 26%, YoY to ¥417M and ¥832M, respectively.

• Henry Schein Inc, the leading global healthcare solutions provider, recently reported its results for the first quarter of 2024.
• The company reported solid earnings driven by gross profit and gross margin expansion as it recovers from last quarter’s cyber-incident.
• It’s worth noting that even with the cyber incident, Henry Schein marked an improvement in its merchandise sales growth.

• Shulan Health Management (1807987D CH)  is looking to raise around US$150m in its Hong Kong IPO. 
• Shulan Health Management (SHM) is a technology-driven healthcare group in China that integrates healthcare services and medical research and education.
• In this note, we talk about the firm’s historical performance.

Immix Biopharma’s Q124 report reflected a period focused on its lead CAR-T asset, NXC-201, targeting amyloid light chain amyloidosis (ALA), which was recently bolstered by incremental NEXICART-1 data. The quarter saw a pick-up in preparatory activities in advance of the US NEXICART-2 trial initiation with the finalization of a manufacturing facility in California and selection of the lead clinical trial site. We await the first-patient dosing, expected in mid-2024. We also expect an update on the addition of the autoimmune indication for NXC-201 by year end. The Q1 operating loss of $5.6m was in line with our expectations, and Immix anticipates it will maintain a cash runway through Q225 ($29.3m cash at hand at end-Q124). Our valuation adjusts to $139.5m or $5.3/share, slightly changed from $142.2m or $5.4/share, previously, with the roll forward of our model and quarterly update.

• IN8Bio is a clinical-stage, oncology-focused biotechnology company using ?d T cells against solid and hematological tumors.
• Its pipeline is built on the DeltEx platform & drug resistant immunotherapy (DRI) technology which have produced clinical candidates targeting leukemia & GBM. INB-100 is evaluating leukemia in a Ph1 study, while INB-200 & INB-400 are Ph1 and Ph2 assets evaluating GBM. INB-100 is an allogeneic DeltEx-produced cell therapy for leukemia patients undergoing HSCT transplant.
• Leukemia patients see a high rate of recurrence which may be effectively treated by INB-100.

• Tenax has licensed the calcium sensitizer/K-ATP activator levosimendan and is pursuing approval for an indication in Group 2 Pulmonary Hypertension in the US and Canada.
• The drug has been approved in over 60 countries with 35 published trials supporting its safety and efficacy and has over 1 million patient exposures.
• In January 2018 Tenax announced a new indication for Levo and met with the FDA to confirm trial design.

• Based on Waters Corporation’s earnings, the company demonstrated strong operational performance in Q1, although the market conditions were as expected with cautious customer spending and late budget releases.
• Sales landed at the high end of the guidance but declined 7% as reported and 9% in organic constant currency.
• It had a strong start to 2024, with sales coming in at the high end of expectations, reflecting the firm’s drive to accelerated the benefits of their science with their innovative portfolio.

BB Biotech (BION) offers investors exposure to the innovative, rapidly expanding biotech sector. It is the largest biotech investor among its investment company peers, focused on high-quality biotech assets that target substantial market opportunities. BION’s performance has picked up in recent months, supported by an improvement in the market environment. Its managers are optimistic about the outlook as declines in interest rates, whenever they eventuate, begin to boost investor sentiment towards the sector, especially the mid- and small-cap companies that BION favours. The fund’s managers also expect ongoing progress by portfolio holdings, as several reach key milestones over the coming months. Unlike most of its peers, BION pays an attractive 5% dividend, calculated on average share price over December each year.

• Bio-Rad Laboratories, a multinational firm delivering scientific research products and clinical diagnostics, reported its first-quarter 2024 financial results performing as per their internal estimates.
• The primary factor for their performance fluctuations was the macroeconomic and market trends due to the biotech and biopharma segments in countries such as China and Russia.
• The company observed a decline in the Life Science Group, albeit in line with their expectations.

• In 24Q1, the innovative drug projects and medical device projects ranked top two in domestic investment and financing deals, but investment in the field of AI cooled down.
• For biotech that located in China and only for China markets, it’s hard for them to generate good returns. It is recommended not to spend too much time on them.
• As the US House Committee advances the BIOSECURE Act to restrict WuXi AppTec/WuXi Bio last week, we listed some points worth the attention at this stage.This is far from over.

• Bangkok Dusit Medical Services (BDMS TB) posted double-digit growth revenue, EBITDA, and net profit in 1Q24. International and Thai patients reported revenue growth of 12% and 10%, YoY, respectively.
• EBITDA grew at a faster pace of 13% YoY to THB6.8B, due to tight cost control. Net profit of THB4.1B beat estimates.
• BDMS opened one secondary care hospital with 113 registered beds in March. Phuket Cancer Center is expected to start operation in 3Q24.

• McKesson Corporation’s Fourth Quarter Fiscal 2024 earnings reflect a strong financial year for the company with notable advancements throughout its strategic priorities.
• Consolidated revenue increased by 12% reaching $309 billion with adjusted earnings per diluted share increasing by 6% to $27.44 both exceeding the expectations set at the start of the fiscal year.
• The company achieved this growth across the enterprise with their differentiated portfolio of assets, innovative solutions, and commitment to quality and operational excellence.

• Teleflex Inc.’s Q1 2024 Earnings revealed promising initial results, led by Liam Kelly, the Chairman, President and Chief Executive Officer, along with Thomas Powell, the Executive Vice President, and Chief Financial Officer.
• For Q1 2024, Teleflex achieved revenues of $737.8 million, a 3.8% YoY increase on a GAAP and constant currency basis.
• Utilization of the company’s products trend positively and was on par with expectations.

• A “Privatisation via a Merger by Absorption” is nothing new in Hong Kong. But the Offer consideration for Yichang HEC (1558 HK)‘s minorities is in unlisted scrip – that’s new. 
• The Offeror holds 51.41% in Yichang HEC. Founder Guo Meilan and her son Zhang Yushuai control 62.12% of the Offeror. Yichang HEC shareholders are being offered 0.263614 “Offeror H shares”.
• These consideration shares are unlisted. An independent valuer backs out an implied scrip value of HK$18.12-HK$20.60/share. This is a super complicated, overwrought deal. With numerous unknowns. I’d vote this down. 

Basilea Pharmaceutica has announced the triggering of a US$1.25m milestone payment from Pfizer, triggered by sustained strong sales of Cresemba in the Asia-Pacific region and China. This is the second FY24 milestone payment for the region and is incremental to the payment received in March. We note that, according to the latest available data, total in-market sales of Cresemba amounted to US$473m in the 12 months ending December 2023, representing a +26% year-on-year increase. Basilea is preparing to launch its Phase III programme for fosmanogepix, a broad-spectrum antifungal therapy, with the first of two Phase III trials expected to initiate in mid-2024. The company also made positive regulatory and operational strides with its lead antibiotic asset, Zevtera (following FDA approval in April 2024), and we eagerly await the announcement of a potential US commercial partner.

• In this insight, we discuss the additional financing requirements, changed shareholding structure, and the next steps for Eoflow. 
• Eoflow is one of the best performing stocks in the Korean stock market in the past one month as its shares have soared 249% in this period.
• The details of the oral argument (Insulet vs Eoflow) at the U.S. Appellate Court suggest that the U.S. Appellate Court may rule in favor of Eoflow.

• In 1Q24, SK Biopharmaceuticals (326030 KS) posted Xcopri U.S. sales of KRW90.9B, up 69% YoY and 17% QoQ. The company remains confident to meet annual sales guidance of KRW390–416B.
• 1Q24 operating profit reached KRW10B from an operating loss of KRW23B in 1Q23. The company aims to achieve profitability throughout 2024.
• The company is seeking a second product to strengthen its U.S. and global business. Xcopri also has potential for indication expansion in near future.

• 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 completed the SAD & MAD cohorts & should report results in June.

• Maravai is expected to experience returns over the next three years as it matures and grows within the expanding field of next generation medical therapeutics.
• The company has a solid financial foundation, a diverse portfolio of patent-protected products, and a strong position in high growth areas such as mRNA, CAR-T, and CRISPR technology.
• Despite recent market challenges, Maravai’s long-term prospects are promising, making it a compelling investment opportunity for patient investors seeking sustained growth and value.

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.

• Earlier this year SYRA announced a partnership for a federal contract that overall is valued at $75 billion.
• Its 2nd federal sub-contractor award with LUKE bodes well for revenue growth, we believe, as well as further geographic market expansion and revenue diversification efforts.

• Hologic Inc. continues to maintain strong and robust revenue growth amid challenging market dynamics and tough year-on-year comparative figures.
• The company’s Q2 2024 result recorded total revenue of $1.02 billion and non-GAAP earnings per share of $1.03, both exceeding Hologic’s initial projections.
• The business benefited from high growth levels experienced in the past, yielding steady performance this quarter.

• DaVita, in its first quarter 2024 earnings, was noted for building on the momentum generated through 2023, showcasing operational discipline with continuing opportunities for investment, innovation, and delivering clinical excellence.
• Javier Rodriguez, CEO, shared that the company has managed to keep pace with its strategic goals, notably in supporting kidney transplantation.
• DaVita recently achieved its highest monthly rate with over two-thirds of its patients under the age of 75 being referred for kidney transplant.

• Eisai Co Ltd (4523 JP) has guided for FY25 Leqembi revenue of ¥56.5B (~$366M), with ¥43.5B from U.S., and ¥10.0B from Japan. In FY24, Leqembi reported worldwide revenue of ¥4.2B.
• Leqembi is expected to grow significantly due to increase in prescriptions following the progress in the development of AD diagnosis and treatment pathways in the U.S. and Japan.
• The current rally can be short lived, as the competitor drug is expected to get FDA approval in 3Q24.

• Illumina Inc. has had a strong first quarter of 2024, which included an encouraging performance from its high throughput consumables, increased revenue from strategic partnerships, and the delivery of a number of NovaSeq X instruments.
• However, Chief Executive Officer Jacob Thaysen has warned about the persisting uncertain global economic environment and cited customer concerns affecting purchasing decisions.
• The year’s results were particularly promising considering the challenges posed by the Coronavirus pandemic.

• On May 9, 2024, Arrowhead Pharmaceuticals, Inc. (ARWR) announced financial results for the second quarter of fiscal year 2024 that ended March 31, 2024.
• The company currently has 14 clinical stage programs, with 10 of them being wholly owned.
• We expect a total of 18 clinical programs by the year end.

• Baxter International’s first quarter 2024 earnings report revealed that the company exceeded its guidance for that term, with 2% growth on a reported basis and 3% at constant currency rates compared to an initial projection of approximately 1% growth.
• This performance was underpinned by strong demand and favorable pricing for a broad range of Baxter’s products.
• The firm’s performance illustrates the benefits of its recent strategic transformation, with improved global visibility, enhanced accountability, and functional verticalization contributing to its success.

• 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 is poised for IND clearance and BioJet may advance into the clinic through the efforts of pharmaceutical partners.

• Cardinal Health, Inc., a provider of healthcare products and services, reported its Q3 FY2024 financial performance.
• The quarter displayed broad-based growth as the company worked on its four strategic priorities, eventually leading to growth and raised outlook for the fiscal year ’24.
• The pharmaceutical and specialty solutions business showed strong growth, riding on ongoing stability in pharmaceutical demand.

• On May 1, 2024, Cocrystal Pharma, Inc. (COCP) announced the completion of enrollment of 78 subjects in the randomized, double blind, placebo controlled Phase 2a human challenge trial of CC-42344.
• Study subjects were infected with influenza A and then treated with CC-42344 or placebo.
• We anticipate topline results in the second half of 2024.

• On May 13, 2024, Imunon, Inc. (IMNN) announced financial results for the first quarter of 2024 and provided a business update.
• The company is on track to report topline results from the OVATION 2 trial of IMNN-001, a DNA-based interleukin-12 (IL-12) immunotherapy as a first-line treatment of locally advanced ovarian cancer, in mid-2024.
• In addition, the company announced it has activated the first site for patient recruitment for the Phase 1 study of IMNN-101, a seasonal COVID-19 vaccine candidate.

• On the positive side, the company delivered top and bottom-line numbers either on or slightly above the expectations.
• The favorable demand for the industry continued to surge as IQVIA’s revenue grew by 6%.
• The clinical side of the business, in particular, saw solid demands from R&DS clients, which boosted their backlog to a new record, growing almost 8% compared to the prior year.

• Abeona is developing a cell therapy for the rare disease RDEB, with FDA review ongoing and a target action date of May 25th
• The therapy is expected to have a significant impact on RDEB patients, who face severe skin and GI issues due to a lack of specific collagen
• With a niche business model focused on treating a small patient population, Abeona anticipates generating over $100 million in free cash flow and potentially offering significant upside for investors.

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.

• In FY25, Nihon Kohden (6849 JP) guided for domestic revenue of ¥147B, up 3% YoY. The demand for patient monitors and treatment equipment is expected to remain steady.
• Nihon Kohden expects North America business to report a revenue CAGR of 11% (fastest among all the other regions) during FY24–27, outpacing mid-single-digit growth of the market.
• The company announced ¥10B buyback plan to repurchase up to 6M shares, representing 3.57% of total number of issued shares from August 5, 2024, to March 31, 2025.

• Since mid-April, spreads have generally tightened across our European liquid universe of ordinary and preferred shares (12 have tightened, 7 widened). Views are unchanged. 
• Recommended trades long preferred / short ordinary shares: Atlas Copco, Danieli, Grifols (see section on the company), Media-for-Europe, Sixt, Volkswagen.
• Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal, Roche.

• Amgen Inc. witnessed strong growth in the Q1 of 2024 with total revenue increasing by 22% YoY. This was largely driven by strong volume growth, including over $900 million from the integration of Horizon Pharmaceuticals’ legacy portfolio.
• The growth was also supported by robust product sales from brands like Repatha, TEZSPIRE, EVENITY, Prolia, and BLINCYTO. Amgen projects full-year sales of approximately $500 million for Neulasta.
• The company has advanced many of its pipeline products; it awaits approval for tarlatamab, hopes to bring this innovative cancer solution to patients with small-cell lung cancer.

• Sunshine Lake Pharma plans to privatize HEC CJ Pharma in the form of merger by absorption with conditions. After privatization, CJ Pharma will be delisted from the Stock Exchange.
• Sunshine Lake Pharma’s pipeline has been “disconnected” from the level of domestic biotech in recent years, and is completely lagging behind the average speed of innovative drug development in China.
• Due to “outdated” pipeline and lack of prospects, even if CJ Pharma is merged into Sunshine Lake Pharma, valuation performance of the new entity would be disappointing in the future.

• 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 the blood thinner, ticagrelor, undergoing cardiac surgery.
• Data from the pivotal U.S. STAR-T trial presented at the AATS conference and recent KOL/Analyst/Investor day demonstrate a favorable benefit-to-risk profile of DrugSorb-ATR to reduce serious bleeding in patients undergoing isolated CABG. Company plans to submit for FDA De Novo and Health Canada marketing approvals in Q3 2024.

• Dyadic has developed C1, its proprietary fungal expression system that can produce a variety of recombinant proteins.
• C1 has been commercialized in industrial applications and is in development for production of pharmaceutical grade proteins.
• C1 exhibits potential to economically produce biologic vaccines, virus like particles, antibodies, Fc-fusion, enzymes, AAVs and other biopharmaceuticals.

• Revenue in 1Q24 advanced 5.9% y/y, driven by 14.5% & 38.4% respective improvements in PBRT and direct patient revenue, the latter due to international operations where patient volumes continue to increase.
• Ecuador’s recently installed new Gamma Knife ICON and Peru’s Gamma Knife represent the only Gamma Knife machines in these markets.
• AMS has indicated that its sales pipeline is the strongest it has been in years & revenue backlog has reached more than $210M, more than double the level at YE 2023.

• Lantern Pharma uses AI & data to identify drug responders, uncover mechanism of action & rescue failed drugs.
• It is developing LP-300 for non- & never smoker NSCLC in the Harmonic trial.
• Secondary candidates include LP-100 for mCRPC and LP-184 and LP-284 which are in clinical development for multiple biomarker-defined tumors and hematological cancers, respectively.

• Bio-Techne Corporation, a biotech firm specializing in protein and cell-based research, recently reported their third quarter 2024 earnings.
• The company displayed strong performance, and its financial circumstances seem to be stabilizing.
• Bio-Techne’s 2% year-over-year organic revenue growth exceeded their expectations, heralding potential expansion as biotech funding and macroeconomic challenges in China stabilize.

• In the Q1 2024 earnings, Jazz Pharmaceuticals reported a year-over-year combined double-digit revenue growth from its key growth drivers including Xywav, Epidiolex, and Rylaze.
• These assets have significantly contributed to their first-quarter total revenue growth which reached over $900 million.
• Xywav’s revenue growth rose to 14% year-over-year, signifying the company’s positive trajectory and endurance in the market.

• Abbisko’s share price has fallen since its IPO.Although Abbisko has been buying back shares and LAV has begun to increase its holdings, none of this would brighten the Company’s prospects.
• FGFR and CSF-1R are not very likely to generate blockbuster products.Even with the cooperation of MNCs, peak sales of Abbisko’s products could still be low due to “flaws” on targets.
• There would be very limited imagination of Abbisko’s future valuation expansion. This may largely explain why stock price continues to decline. Investors’re advised to make rational judgments about the Company.

• Lantern Pharma uses AI & data to identify drug responders, uncover mechanism of action & rescue failed drugs.
• It is developing LP-300 for non- & never smoker NSCLC in the Harmonic trial.
• Secondary candidates include LP-100 for mCRPC and LP-184 and LP-284 which are in clinical development for multiple biomarker-defined tumors and hematological cancers, respectively.

Newron Pharmaceuticals has released additional data from its Phase II/III trial (study 008A), providing further evidence to support evenamide’s potential in schizophrenia. After four weeks of treatment, the mean score on the Clinical Global Impression of Change (CGI-C) scale, a key secondary efficacy measure, was 3.3 versus 3.5 for placebo, with the lower score translating to more favourable outcomes. Also, 31.3% of patients rated ‘much improved’ versus 17.3% on placebo. The update indicated that all the major efficacy measures increased over time, similar to the trend seen in the Phase II 014/015 study, albeit in a larger, randomised, placebo-controlled setting. The results highlight the drug’s potential as an effective long-term treatment in a segment with limited treatment options. As previously discussed, a potentially pivotal Phase III study in treatment-resistant schizophrenia (TRS) (study 017) is in the works, and expected to commence within 2024.

• 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 reported 1Q2024 results that were a little shy of estimates, but growth continues, and the product line should accelerate growth in the coming years.

• On May 10, 2024, Soligenix, Inc. (SNGX) announced financial results for the first quarter of 2024 and provided a business update.
• The company recently completed a public offering for gross proceeds of approximately $4.75 million.
• This capital infusion is important as the company prepares to initiate a second Phase 3 trial of HyBryte (synthetic hypericin) in the treatment of cutaneous T cell lymphoma (CTCL).

• The company attributed the strong topline to investments in technology and personnel made in recent quarters to support expected growth.
• The Caduceus sub-contract is not included in guidance and so therefore could provide upside, depending on when it comes on stream.
• Moreover, SYRA is optimistic about potential new federal business.

• Today SMO and CRO operator I’Rom Group (2372 JP) announced an MBO where Blackstone would be the sponsor.
• From outward appearances, it would seem to be an estate management exercise. It’s not particularly rich as a bid, but it isn’t awful. 
• I expect this gets done as Mori-san and family and friends appear to have 58% going in. Expected to start in June.

• The review period ended on 30 April, there are just over 2 weeks to announcement of the changes, and implementation will be done at the close on 14 June.
• We forecast 5 potential changes for the index in June where there could be buying of 1.6-2.6x ADV on the adds and selling of 0.7-2.6x ADV on the deletes.
• At the December 2023 rebalance, the adds outperformed the deletes in the weeks prior to announcement of the changes and then spiked post-announcement. Repeat this time?

• I’Rom Group (2372 JP) recommended a Blackstone (BX US)-sponsored pre-conditional MBO at JPY2,800, a 49.5% premium to the undisturbed price. 
• Approvals under the competition laws of Japan and Australia are a precondition. The tender offer is expected to start in mid-June.
• The offer is attractive and requires a 37% minority acceptance rate. While the timing of regulatory approvals is a risk, the transaction is a done deal.

• Olympus Corp (7733 JP) has announced a buyback plan for up to 60M shares, representing 5.15% of outstanding shares, by spending ¥100B from May 13 to December 31, 2024.
• The company has posted mixed FY24 results, with revenue beating and operating and net profits missing guidance. Olympus has guided for just 9% revenue growth for FY25.
• Overall business outlook of the company seems to be bleak. With limited upside potential expected, it will be wise to tender shares through the company’s buyback offer.

• The “Entrusted Management Agreement” indicates that horizontal competition issue will be completely solved within three years.This could pave the way for a future merger between Guorui and Shanghai Shyndec Pharmaceutical. 
• The spin-off of Guorui won’t have material impact on China National Medicines Corporation (CNMC). After restructuring, CNMC will focus on “Beijing area pharmaceutical distribution + nationwide distribution of anesthesia/psychotropic drugs”. 
• Based on strong/stable fundamentals as well as the dominant position in anesthesia and psychotropic drug business, CNMC’s future growth potential is promising. We share our views on the Company’s valuation.

• Demonstrating solid execution – Q1-4 FY3/24 results were ahead of company guidance, with Shofu demonstrating solid execution of its strategic initiative for overseas expansion and sales mix improvement.
• By delivering sustained double-digit sales and earnings growth with record-high profitability, we believe the outlook remains positive for the medium to longer term with production capacity increases being a major theme of the company’s new medium-term plan.
• Whilst working capital requirements and capital intensity will rise, we believe this will result in Shofu reaching its target of ¥50bn annual sales with an enduring model for shareholder value generation.

• GlaxoSmithKline demonstrated robust quarterly performance, continuing its commitment to creating long-term value for its stakeholders.
• The company managed to deliver double-digit growth for the quarter, with sales increasing by 13% to GBP 7.4 billion, core operating profit going up by 35% to GBP 2.4 billion, and core earnings per share increasing by 37%.
• Underpinning GlaxoSmithKline’s solid financial results is the successful launch and strong delivery of its new products, reflecting the company’s ability to continue growing and innovating in the highly competitive pharmaceutical industry.

• Achieve Life Sciences is developing cytisinicline for use as a smoking cessation treatment in the United States and rest of world.
• Topline results from ORCA-2 were reported in April 2022 and for ORCA-3 in May 2023.
• Results exceeded expectations on safety & efficacy parameters.

• The in vitro testing examined the removal of EVs directly from plasma & was reviewed and examined by an independent 3rd party commercial lab & by NAMSA, AEMD’s CRO for its planned Australian oncology study.
• The data is a critical element enabling the company to move the Hemopurifier forward in clinical oncology studies towards potential regulatory approval and commercialization.
• The next step is for AEMD to add the data to its Clinical Investigator Brochure, which it will then submit to the Ethics Committees at clinical sites interested in participating in the planned trials in Australia and India.

• IDEXX Laboratories began 2024 on a positive note, highlighted by strong profit gains and solid organic revenue growth.
• In the first quarter, the company’s overall revenues increased by 7%, organically, underpinned by 7% organic growth in Companion Animal Group (CAG) Diagnostic recurring revenues.
• This robust growth occurred despite adverse effects from severe U.S. weather in January that the company estimates lowered overall organic revenue growth by 0.5% to 1%.

• The National Health Commission and eight other departments issued “Opinions on strengthening the capacity building of critical care medical services”. New policy catalysts in the medical device sector arrives.
• Current valuations of weight-loss drug companies have “large bubble”, which have basically priced in all the potential of GLP-1s even based on optimistic assumptions. We advise investors to be rational.
• The price of core raw materials is showing a continuous upward trend, which will inevitably cause certain difficulties for Pientzehuang’s performance growth in 2024. Valuation has more downside ahead.

• The market is satisfied with BeiGene’s 24Q1 performance. The major reason for BeiGene to narrow net loss in 24Q1 was based on strong product revenue growth rather than cost control. 
• Given the varying pace of product promotion/R&D expenditure and the changes of product sales growth, BeiGene’s adjusted loss may achieve breakeven in a certain quarter of this year (e.g. 24Q4).
• BeiGene (6160 HK) is hard to cut costs largely. Sustained overall profitability may not be achieved until 2026 or 2027. But at least, we still see hope for a turnaround.

• Yichang HEC Changjiang Pharma (1558 HK)‘s pre-conditional privatisation from Sunshine Lake Pharma comprises scrip (0.263614 new offeror H Share per HEC CJ Pharma share) and cash (special dividend of HK$1.5).
• The pre-condition is regulatory approvals from NDRC, MOFCOM, and SAFE. The key condition is approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection). 
• There is valuation uncertainty as the offeror is unlisted, and its valuation hinges on pipeline products. Nevertheless, with no shareholder close to a blocking stake, the deal should get up.   

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: HD Hyundai Marine Solution (443060 KS) and ZEEKR (ZK US) have strong IPO debuts.
• Event-Driven developments China Traditional Chinese Medicine (570 HK), Greatview Aseptic Packaging (468 HK), Yichang HEC Changjiang Pharma (1558 HK), CPMC Holdings (906 HK), Alps Logistics (9055 JP), Infocom Corp (4348 JP). 

• In Q1 2024, Eli Lilly and Company achieved strong growth and strategic milestones, with revenue growing by 26% and new products increasing by nearly $1.8 billion in comparison to the same period last year.
• The company’s new products, primarily Mounjaro and Zepbound, primarily drove the growth.
• Eli Lilly also accomplished various pipeline milestones during this period.

• Incyte Corp’s first quarter 2024 earnings pointed towards the company’s steady performance during the quarter and provided an update on its ongoing projects.
• The company’s total revenue grew by 9% in Q1 as compared to the same period last year, with growth driven largely by the drugs Jakafi and Opzelura.
• In particular, Jakafi’s net product revenue was $572 million, not fully reflecting its demand growth due to an increase in total patients, particularly those with PV and GVHD. Similarly, Opzelura’s net product revenues in the first quarter were $86 million, indicating a 52% growth when compared to the same period last year.