Healthcare

Paramount Bed Holdings Co Lt (7817 JP) reported record-high sales and profit during six-month ended on September 30, 2021, driven by strong domestic demand due to recovery from the pandemic.
Each of businesses are receiving steady inquiries from market and is expected to perform strongly. Management raised full-year guidance after a strong Q1 results.
New products are driving margin for the company. Nemuri SCAN continues to perform well as remote monitoring using sensor technology is receiving more attention amid the COVID-19 pandemic.

Shenzhen Chipscreen Biosciences (688321.CH) – Risks Outweigh Opportunities

The small market space of peripheral T-cell lymphoma indication and the fierce market competition of other indications, products and candidates make the Company’s future commercialization performance uncertain.
The continuous large investment in R&D, high selling expenses, and declining R&D expending capitalization would further drag down profitability.
So, our view is that we are conservative about Chipscreen Biosciences’s outlook at the current stage.

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Jan 16

Health Care: Green Cross and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Green Cross (006280 KS): Look Ahead for Key Milestones Amid Covid Vaccine Related Setback

Green Cross (006280 KS): Look Ahead for Key Milestones Amid Covid Vaccine Related Setback

Green Cross (006280 KS) is currently waiting for marketing approval from the FDA for its immune globulin intravenous injection, which will mark its entry into the U.S. market.
The company will start commercializing its hemophilia A treatment, GreenGene F in China market this year. As a third-generation product, GreenGene is expected to gain substantial market share.
Green Cross shares remained subdued last year, as the company could not finalize a contract manufacturing deal for COVID-19 vaccine.

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Jan 14

Health Care: Mani Inc, Hangzhou Bioer Technology and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Mani Inc (7730 JP): No Immediate Respite Seen
Bioer IPO: Currently Holding Strong but Would Growth Rates Sustain Post-COVID?

Mani Inc (7730 JP): No Immediate Respite Seen

By Shifara Samsudeen, ACMA, CGMA

Mani Inc (7730 JP) offers medical devices, which are mainly used in the elective procedures including cataract surgery and dental procedures.
In FY21, the company missed its guidance for both revenue and operating income by 2% and 5%, respectively, due to higher-than-expected impact of the COVID-19.
With the rising cases of highly infectious Omicron variant of the COVID-19 in major operating regions, the company is expected to miss or lower its FY22 guidance.

Bioer IPO: Currently Holding Strong but Would Growth Rates Sustain Post-COVID?

Bioer designs, manufactures and sells three categories of PCR products: instruments, reagents and consumables. With the spread of COVID-19, the company experienced strong growth in revenue and margin improvements.
The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange and plans to raise proceeds of around US$200m
Strong growth in Bioer’s revenue over the last two years was predominantly driven by the spread of COVID-19. We are concerned on the company’s ability to maintain its revenues post-COVID.

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Jan 12

Health Care: Paradigm Biopharmaceuticals, Ipca Laboratories, Beijing Chunlizhengda Medical Instruments, Abbott India and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Paradigm Biopharmaceuticals (PAR AU): Concerns on First Potentially Commercialized Product
Ipca Laboratories: Two for One Share Stock Split
Chunlizhengda Medical Instruments (1858.HK) – Conservative About the Outlook
Pick of the Week: Abbott India Ltd

Paradigm Biopharmaceuticals (PAR AU): Concerns on First Potentially Commercialized Product

Paradigm Biopharmaceuticals (PAR AU) is re-pioneering patent expired, existing drug molecule pentosan polysulfate sodium as a potential treatment of osteoarthritis, under the brand name Zilosul.
With a current addressable patient population of 72 million people, Zilosul has an annual revenue potential of more than $10 billion, if approved.
Inherent safety concern on the existing FDA-approved indication and Paradigm’s financial capability are the near-term overhangs on the commercialization prospect of the drug.

Ipca Laboratories: Two for One Share Stock Split

By ICICI Securities Limited

The Ipca Laboratories stock has been sub-divided from one existing equity share of Rs 2 each face value into two equity shares of Rs 1 each face value
Consequently, Ipca Lab’s share price has dropped to ~Rs 1099/share from ~Rs 2200/share.
Hence, our target price has also now been revised to Rs 1245/share post this corporate action.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Chunlizhengda Medical Instruments (1858.HK) – Conservative About the Outlook

Last year end, Beijing Chunlizhengda Medical Instruments (1858 HK) was listed on the SSE STAR Market, but fell on debut.
The major concerns include performance slowdown, loss of bidding in centralized procurement, problematic sales model, poor gross profit margin, single products risk and weak innovation capability and international business.
Our view is that there is no immediate prospect of significant improvement. With too many uncertainties and concerns, we are conservative about Chunlizhengda’s outlook despite the large A/H premium.

Pick of the Week: Abbott India Ltd

By Axis Direct

Revenue growth of Abbott India Ltd (AIL) for FY21 has outpaced the Indian Pharma Market (IPM) growth by 100 bps majorily contributed by addition of new products
AIL has leadership position in 9 top brands out of 10 in their respective therapies
We recommend BUY with a TP of Rs 20,000/share.

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By Shifara Samsudeen, ACMA, CGMA

Jan 11

Health Care: Australian Pharmaceutical Industries, Gaush Meditech, Takeda Pharmaceutical, Bloomage Biotechnology Corporation-A and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Aussie Pharma: Path Cleared For Wesfarmers As Woolies Walks.
Gaush Meditech (高视医疗科技) Pre-IPO: Need a Very Convincing Story
Takeda: Excessive Reaction to Recent Setback in Trials; Drop in Share Price Offer Attractive Entry
Bloomage Biotechnology (688363.CH) Vs Imeik Technology (300896.CH) – The Logic and the Outlook

Aussie Pharma: Path Cleared For Wesfarmers As Woolies Walks.

By David Blennerhassett

Woolworths Ltd (WOW AU)‘s surprise takeover Offer for Australian Pharmaceutical Industries (API AU) last month is surpassed by its surprise decision to walk away.
This leaves Wesfarmers Ltd (WES AU) in the driving seat – provided the ACCC is satisfied competition is not impeded.
The cash consideration of $1.55 under Wesfarmers’ Offer will be reduced by any permitted dividend. A final fully franked dividend of A$0.02/share has been paid.

Gaush Meditech (高视医疗科技) Pre-IPO: Need a Very Convincing Story

By Ke Yan, CFA, FRM

Gaush Meditech is a leading distributor of ophthalmic medical device in China. The company is looking to raise up to USD 200m via a Hong Kong listing.
We look at the company’s key segments and products. The company’s story of being a comprehensive distributor and R&D does not impress us.
The company is mainly held by the founder’s family. We think the company should be valued as a distributor and not innovative medical device company.

Takeda: Excessive Reaction to Recent Setback in Trials; Drop in Share Price Offer Attractive Entry

Takeda is currently trading at JPY3,175 per share, slightly above its all-time low of JPY3,105 per share. Shares are currently at a 27% discount to its peak in March 2021.
The company has been divesting its non-core assets and reorganising its business around five core areas: GI, Rare Diseases, Plasma-Derived Therapies, Oncology, Neurosciences and Others.
Takeda’s share price started plunging after the suspension of a phase 2 study of TAK-994 in October 2021 following the emergence of a safety signal.

Bloomage Biotechnology (688363.CH) Vs Imeik Technology (300896.CH) – The Logic and the Outlook

There’re many uncertainties about Imeik’s development strategy, resilience in front of risks and corresponding business performance, which could make it difficult for the market to calmly view the next fluctuation.
Despite lower profit margin, Bloomage is more R&D oriented and characterized by integration of industrial chain,enabling it to establish wider moat and move forward more stably in the long term.
Our view is that Bloomage Biotechnology Corporation-A (688363 CH) is expected to have more potential and imagination space than Imeik Technology Development (300896 CH) in the future.

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Jan 10

Health Care: Shanghai Junshi Bioscience and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Shanghai Junshi Bioscience (1877.HK/688180.CH) – Behind the “break Up” with AstraZeneca

Shanghai Junshi Bioscience (1877.HK/688180.CH) – Behind the “break Up” with AstraZeneca

Shanghai Junshi Bioscience Co. Ltd. (1877 HK) announced that it has terminated its PD-1 commercialization partnership with AstraZeneca. Lower-than-expected sales performance is seen as the key reason.
Junshi’s commercialization team is the weakest among the domestic Top Four.As the FDA’s attitude may have changed, the logic of exporting innovative domestic drugs to foreign markets could be shaken.
Given the poor financing environment,it’s challenging for Junshi to afford large investment in R&D and licensing deals by just relying on cash in hand and cashflow generating from commercialized products.

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Jan 09

Health Care: Telix Pharmaceuticals and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Telix Pharmaceuticals (TLX AU): Stepping Ahead with First Product Approved in the U.S.

Telix Pharmaceuticals (TLX AU): Stepping Ahead with First Product Approved in the U.S.

Last month, Telix Pharmaceuticals (TLX AU) received FDA approval for its first cancer imaging product, Illuccix. Commercial launch of Illuccix will be the major milestone for the company in 2022.
EU approval for Illucix is expected in March. Illuccix has multi-billion-dollar global market opportunity, driven by rising incidence of prostate cancer, increasing clinical adoption, and geography expansion.
The company has a rich pipeline targeting seven indications, having high unmet medical needs. Telix is expected to file for kidney cancer imaging product, TLX250-CDx in early 2022.

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Jan 08

Health Care: Osstem Implant and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Osstem Implant – Where to Next?

Osstem Implant – Where to Next?

By Ken S. Kim

The family of the accused has said that the embezzlement was not an act of one man but due to orders taken from superiors.
The recovery shoudn’t be an issue as the accused had bought in gold in Dec and Dongjin Chem has not had a substantial drop for the period in question.
When did this start? According to the Capital Market Act, if an investor incurs loss due to false statements/omissions in the business/quarterly report, the company is responsible for damages.

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Jan 07

Health Care: Shinpoong Pharmaceutical, Eisai Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Shinpoong Pharmaceutical (019170 KS): Three Concerns Are Clouding the Upside Potential
Japan’s Governance: Corporate Governance Evaluation of Pharmaceutical Companies

Shinpoong Pharmaceutical (019170 KS): Three Concerns Are Clouding the Upside Potential

Shinpoong Pharmaceutical (019170 KS) management is accused of raising KRW 25 billion in slush funds. If found guilty, the shares may be suspended to trade in the stock exchange.
The company’s oral COVID-19 drug is in phase 3 trial. However, late entry and uncertainty over the efficacy of multiple variants of the COVID are dampening sentiment.
Shinpoong Pharmaceutical is investing heavily in R&D to build-up a rich pipeline, which will pressurize profit in near-term.

Japan’s Governance: Corporate Governance Evaluation of Pharmaceutical Companies

By Aki Matsumoto

Since I am interested in Eisai’s corporate governance initiatives, this article would like to analyze them in conjunction with the situation of pharmaceutical companies.
Eisai has an outstandingly high rating, except for the fact that it has anti-takeover measures. The other 3 companies that have anti-takeover will need to improve corporate governance practices considerably.
The growth policy is reasonable and clearly explained, but there is still room for improvement in the use of the retained cash and disclosures in English for Eisai.

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Jan 05

Health Care: Bio FD&C, Simcere Pharmaceutical Group, Genscript Biotech and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Bio FD&C IPO Preview
Simcere Pharmaceutical (2096 HK): Focus Shifts to Innovative Drug; COVID-19 Oral Drug in Development
Genscript Biotech (1548.HK) – The Strength and the Concerns

Bio FD&C IPO Preview

By Douglas Kim

Bio FD&C is getting ready to complete its IPO in the Korean stock market in February 2022.
Founded in 2005, Bio FD&C is a company that develops anti-aging materials with plant cell line design and plant cell culture technology.
Currently, Bio FD&C hasa gray market price of 90,000 won, which is 210% higher than the high end of the IPO price range.

Simcere Pharmaceutical (2096 HK): Focus Shifts to Innovative Drug; COVID-19 Oral Drug in Development

Simcere Pharmaceutical Group (2096 HK) is transitioning to an innovation and R&D-driven pharmaceutical company, with revenue from innovative pharmaceuticals making greater contribution and R&D pipeline of innovative pharmaceuticals advancing rapidly.
During H1 2021, Simcere newly added 5 pivotal registrational trials and phase III clinical trials and 1 phase I clinical trial, and received 7 clinical trial approvals.
Simcere entered into three international partnerships to develop and market innovative drugs in China. The company has also in-licensed an oral COVID-19 drug candidate, which is in pre-clinical stage.

Genscript Biotech (1548.HK) – The Strength and the Concerns

China attaches great importance to gene therapy and related products, which would be a leader of the third industrial revolution in biomedicine and have broad prospects for future development.
With obvious strength in this field,Genscript Biotech (1548 HK)’s businesses are in line with the future trend and the outlook is also quite promising, indicating exponential growth potential in valuation.
However, the potential risks on deterioration of international relations and the concerns on CAR-T commercialization should not be neglected by investors.

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