Daily Brief Health Care: Akeso Biopharma Inc, Basilea Pharmaceutica Ag, Shionogi & Co and more

• HARMONi-2 results are impressive and the overall data is solid and reliable. The NMPA has approved NDA of ebronucimab and sNDA of cadonilimab. Akeso’s fundamentals have indeed undergone positive changes.
• Akeso’s current market capitalization already partially reflects the positive expectation about the future successful FDA approval of AK112. In our view, the Placing Price is not cheap.
• When the market value falls back to below RMB45 billion is a more comfortable valuation to buy Akeso, and below RMB35 billion market value provides a golden opportunity. 

Basilea Pharmaceutica has reported another US$1.25m milestone payment from its partner Pfizer in Asia-Pacific and China, triggered by Cresemba sales in this region crossing a pre-defined threshold. This is the fourth milestone payment for Cresemba from the region this year, adding to the already strong H2 results (c CHF33m/US$38.5m milestone payments recorded in H224 so far; CHF35m in 2024 to date). The Asia-Pacific region, particularly China (which accounts for c 20% of the market potential for Cresemba), is of key importance to Basilea, as its lead product approaches maturity in the US and European markets (exclusivity until late 2027). Note that Cresemba has recorded in-market sales of US$505m for the 12 months ending 30 June 2024, robust 20% y-o-y growth.

• Shionogi & Co (4507 JP) has reiterated FY25 guidance, indicating sequentially better financial performance in Q2FY25 as well as H2FY25. Overseas business and royalty income are on strong footing.
• Shionogi has acquired the exclusive distribution rights for Quviviq in Japan. With better efficacy and safety profile, and sizable patient population, Quviviq should be a significant revenue contributor.
• Shionogi submitted NDA in Japan for zuranolone, a treatment in development for major depressive disorder (MDD). Approval is expected in H1FY26.