Daily Brief Health Care: Beijing Tiantan Biological Products, HK inno.N, 10X Genomics, Perrigo, Halozyme Therapeutics, Merit Medical Systems, QuidelOrtho , Shield Therapeutics, Acadia Healthcare Co, Blueprint Medicines and more

• Guangming District State-owned Assets Supervision and Administration Bureau reached a cooperation agreement with China National Biotec to establish a joint venture, which will become the new controlling shareholder of Weiguang.
• Since Tiantan is already Sinopharm’s subsidiary, there will be horizontal competition issue in the field of blood product business between Tiantan and Weiguang, mainly due to significant business overlap.
• Some spin-offs and integrations are expected between Tiantan and Weiguang. As the reform of SOE enters a new stage, the two companies could end up very different.

• HK inno.N (195940 KS) is expected to see significant improvement in operating profit margin this year to 10.9% (vs. 8% in 2023).
• Growing sales of flagship drug K-CAB, increasing capacity utilization in new IV fluids plant, and improving profitability of health and beauty products segment, will be three important margin drivers.
• With accelerating global presence, HK inno is on track to achieve its target of entering 100 countries by 2028 and achieve global sales of KRW2 trillion ($1.4 billion) by 2030.

• 10x Genomics witnessed good momentum in 2023, achieving a 20% growth in total revenue amounting to $ 619 million.
• The primary contributing factor of this growth was the launch of Xenium that resulted in greater than 250 instrument sales in just its first year.
• The company’s entry into spatial biology was successful with spatial revenue amounting to over $135 million for the year.

• Perrigo Company plc’s fourth quarter and 2023 fiscal year results displayed stable growth in the company’s core operations, with an organic net sales increase of 2% for the year and EPS growth of 25% to $2.58, exceeding the prior year.
• Dimension such as significant growth in Skin Care, nutrition, and women’s health categories, as well as solid progress in the healthy lifestyle sector, underscore the company’s positive performance.
• Also contributing were supply chain reinvention program savings of $40 million and the strategic acquisition of HRA offering synergies of $30 million.

• Halozyme Therapeutics Inc. showcased a strong financial and operating result in the fourth quarter and full year of 2023, fueled by leading differentiating drug delivery technologies ENHANZE and Auto-Injectors, as well as the commercial products XYOSTED and Hylenex.
• For 2023, the company delivered a 26% year-over-year increase in total revenue to $829 million and recorded a $448 million high in royalty revenue, indicating a 24% rise year-over-year.
• Adjusted EBITDA also experienced an increase of 19% to $426 million and non-GAAP diluted earnings per share growth of 25% to $2.77 for the full year 2023.

• Merit Medical Systems Inc, during its Fourth Quarter of Fiscal Year 2023 earnings, revealed relatively positive results.
• The company reported a fourth quarter total revenue of $324.5 million, a 10.6% increase year-on-year.
• The stronger-than-expected revenue growth was mainly driven by a robust organic growth across product categories and contributions from both U.S. and international markets.

• QuidelOrtho reported total revenues of $3 billion for the full year 2023, a decrease of 26% from the previous year.
• The drop was largely attributed to a lower respiratory season in 2023 compared to the prior year, specifically in COVID-19 related testing.
• The company’s non-respiratory revenue segments, however, exhibited a growth of 5% for the year, suggesting potential opportunities in these areas.

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

• ACADIA Pharmaceuticals announced its fourth-quarter and full-year results for 2023.
• The company’s CEO, Steve Davis, stated that ACADIA had transformed its business in 2023 by becoming a cash flow positive company with two first-in-class commercial assets.
• These assets include DAYBUE, a drug approved for treatment of Rett syndrome, and NUPLAZID, a treatment for Parkinson’s disease psychosis.

• Blueprint Medicines enjoyed a successful fourth quarter of 2023, rounding off a pivotal year wherein AYVAKIT became their first and only approved medicine for patients with indolent systemic mastocytosis or ISM. In 2024, the company aims to drive longer-term growth by concentrating on three key business areas: the potential of AYVAKIT, advancing their portfolio of approved and investigational programs targeting mast cell mediated diseases, and maintaining a strong financial position.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.