Daily Brief Health Care: Acotec Scientific Holdings, Mankind Pharma, MicroPort NeuroTech, Respiri Ltd and more

• As expected, Acotec Scientific Holdings (6669 HK)’s partial offer from Boston Scientific (BSX US) at HK$20 per share is now unconditional. The final closing date is 9 February.
• The current acceptances representing 78.59% of outstanding shares imply current proration is 82.71%. Current pro-ration suggests CA Medtech post-offer shares will be counted towards the public float.
• Based on the current proration of 82.71% and at the last close price of HK$19.78 per share, the breakeven price is HK$19.00 per share. 

• Mankind Pharma is looking to raise about US$1bn in its upcoming India IPO.
• MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
• In this note, we talk about the not-so-positive aspects of the deal.

• The spring coil centralized procurement of neuro-interventional consumables in 21 provinces led by Jilin is about to start. The result may be unexpected, which could cause uncertainty to NeuroTech’s performance.
• The promotion of import substitution in the field of neuro-intervention has not been as smooth as expected. If foreign brands win the bid, doctors would give priority to imported products.
• Since NeuroTech is in leading position among domestic peers and has core R&D capabilities in this industry, we think it still has investment value. The valuation is in comfortable range.

Respiri has released its Q223 quarterly activity report and provided a business update for the quarter. The second quarter was characterised by improving commercial traction for Respiri, with the company signing three new contracts for wheezo (including Minnesota Lung Center and Arkansas Heart Hospital), taking the total client count to six at the end of the period. Respiri’s wearable device Sorfe also continues to make progress with clinical studies anticipated to commence by March/April 2023. The recent announcement of a A$1.5m capital raise (with the option to increase the offering size based on investors interest) is expected to extend the company’s cash runway to Q423, based on current burn rates. With patient onboarding ongoing at multiple sites, we expect initial cash inflows from device sales and RPM services in the coming months, which should help scale up commercial activities and likely expand the cash runway further.