In today’s briefing:
- FXI Rebalance Preview: Three Potential Changes in June
- Mankind Pharma IPO Trading – Strong Insti Demand Makes up for Retail Lag
- Alfresa Holdings (2784 JP): FY23 Result Is Expected to Exceed Previous Forecast
- Shenzhen Mindray Bio-Medical Electronics (300760.CH) – This Year’s Challenge Is Not over Yet
- Global Health (Medanta) Lockup – Good Name but Seems Fairly Valued
- Thermo Fisher Scientific Inc.: The GeneProof Partnership & Other Developments
- Biogen Inc.: The Lecanemab Progress On The Alzheimer’s Front & Other Drivers
- Centene Corporation: Improving Market Position In Medicare Advantage – Key Drivers
- Elevance Health Inc.: Major Drivers
FXI Rebalance Preview: Three Potential Changes in June
- As of 8 May, we see three potential changes to the iShares China Large-Cap (FXI) (FXI US) at the June rebalance. This is mainly driven by the inclusions.
- There is over 1 day of ADV to trade on all stocks with the largest impact on BeiGene Ltd (6160 HK) at nearly 4 days of ADV.
- Short interest has been increasing on the potential adds as they have run up a lot in the last few months.
Mankind Pharma IPO Trading – Strong Insti Demand Makes up for Retail Lag
- Mankind Pharma raised around US$527m 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.
- We have looked at various aspects of the deal in our previous note, in this note, we talk about the demand and trading dynamics.
Alfresa Holdings (2784 JP): FY23 Result Is Expected to Exceed Previous Forecast
- Alfresa Holdings (2784 JP) revised its consolidated performance forecast for FY23. Revenue, operating profit, and net profit forecast have been raised by 3%, 2%, and 21%, respectively.
- This is attributed to greater-than-expected growth in ethical pharmaceuticals market and the company’s recovery from the bidding nomination suspension from medical institutions stemming from a violation of the Antimonopoly Act.
- In March 2023, Alfresa received a cease and desist order and a surcharge payment order from the Japan Fair Trade Commission (FTC) in relation to violation of the Antimonopoly Act.
Shenzhen Mindray Bio-Medical Electronics (300760.CH) – This Year’s Challenge Is Not over Yet
- There’s an obvious declining trend in net profit YoY growth.Considering unsatisfactory growth of MI and IVD in 22H2,if it weren’t for the strong growth of PMLS,Mindray’s overall growth could have been “surprising”.
- The current question is whether IVD and MI segments would have high enough growth to offset the potential performance decline of PMLS segment in post-pandemic era. Problems may emerge afterwards.
- There are still some unresolved technical challenges that constrain the development of Mindray. Without good performance in internationalization, there is no incremental market. Thus no reason to maintain high valuation.
Global Health (Medanta) Lockup – Good Name but Seems Fairly Valued
- Global Health (Medanta) (MEDANTA IN) raised around US$268m in its India IPO. The stock was listed on 16th Nov 2022, its six-month lockup will expire on 11th May 2023.
- Global Health (GH) is a hospital network that operates under the Medanta brand. The firm currently has five hospitals in operation and one more planned for development.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Thermo Fisher Scientific Inc.: The GeneProof Partnership & Other Developments
- Thermo Fisher performed reasonably well in Q1 with 6% core organic revenue growth that was above Wall Street expectatis.
- Pandemic-related revenue came in as expected, with $140 million of testing revenue and $180 million of vaccines and therapies revenue.
- Regarding the segment details, the Life Sciences Solutions segment reported a decline in revenue and organic revenue, driven by the moderation in pandemic-related revenue.
Biogen Inc.: The Lecanemab Progress On The Alzheimer’s Front & Other Drivers
- Biogen had a successful first quarter with an all-around beat.
- The company executed the launch of Leqembi, an immediate transformative product in the Alzheimer’s disease therapeutic area.
- Biogen has been experiencing a lot of competition, making it necessary to think about how to grow the business in the future.
Centene Corporation: Improving Market Position In Medicare Advantage – Key Drivers
- Centene had a successful first quarter, showing continued positive momentum operationally which was demonstrated by its all-around beat.
- The company raised its premium and service revenue forecast by $3.7 billion, with full-year 2023 adjusted EPS guidance at $6.40.
- We give Centene Corporation a ‘Buy’ rating with a revised target price.
Elevance Health Inc.: Major Drivers
- Elevance Health’s first quarter results were solid and the company delivered an all-around beat with a growth of around 15% compared to last year.
- The company had 48.1 million medical members at the end of the first quarter.
- Due to organic growth in Medicaid and Medicare Advantage, dual-eligible special needs plans, and group members, risk-based membership increased by roughly 1 million members year over year.
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