Daily Brief Health Care: BrainStorm Cell Therapeutics I, Biocon Ltd, MediciNova , Mckesson Corp, GSK , Chemed Corp, Laboratory Corporation of America Holdings and more

• BrainStorm Cell Therapeutics Inc. (Nasdaq: BCLI) develops NurOwn® stem cell therapy for NDDs – BCLI’s first target is ALS (MND/Lou Gehrig’s).
• BCLI on Friday confirmed its reverse stock split (R/S) to become effective today 30 Sept 2024 (to maintain Nasdaq listing).
• Reverse stock splits are often (though not always) an effective mechanism and often lead to an upwards re-rating as psychological market factors come into play.

Biocon Biologics launched a roadshow last week to market its USD 5NC2 144A/RegS notes offering. The expected issue rating is BB/BB by S&P/Fitch. The proceeds will be used to refinance an outstanding syndicated loan facility obtained for the acquisition of Viatris’ global biosimilars business for USD 3.335 bn in May 2022.

We see fair value for the proposed 5NC2 bonds at 7%.

• On September 30, 2024, MediciNova, Inc. (MNOV) announced that MN-166 (ibudilast) will be evaluated in a National Institutes of Health (NIH) – Neurological Disorders and Stroke (NINDS) sponsored Expanded Access Protocol (EAP) trial that will be supported by a $22 million grant to an academic group.
• The EAP trial will enroll approximately 200 patients with amyotrophic lateral sclerosis (ALS) and will measure MN-166’s effect on neurofilament light, a biomarker for neuron damage.
• MediciNova will provide investigational drug, regulatory support, and safety monitoring support.

• McKesson Corporation reported its earnings for the first quarter of fiscal 2025, showcasing continued growth and strategic progress across various aspects of its diversified healthcare services.
• With a reported revenue of $79.3 billion, the company exhibited a 6% increase year-over-year, and an adjusted earnings per share increase of 8% to $7.88.
• These figures surpassed initial expectations, prompting an upward revision of full-year adjusted earnings per share guidance from $31.25-$32.05 to $31.75-$32.55.

• GSK has reported a strong performance for its second quarter of the year, with a 13% increase in sales to GBP 7.9 billion.
• Highlighting the company’s effective operational execution and a diverse portfolio, GSK’s core operating profit improved by 21% to GBP 2.5 billion, and core earnings per share increased by 17% to 43.4p, all figures adjusted to exclude contributions from COVID solutions.
• This demonstrates GSK’s ability to achieve profitable growth driven by both its longstanding and newly launched products.

• Chemed Corporation, a diversified company primarily engaged through its subsidiaries, VITAS Healthcare Corporation and Roto-Rooter, recently provided updates in their Second Quarter 2024 Earnings Call.
• The overview pulls into focus a mixed performance within its distinct operations.
• Starting with VITAS Healthcare Corporation, there’s a pronounced positive trajectory witnessed in the segment, particularly off the back of the acquisition of Covenant Health.

• Labcorp Holdings Inc. delivered a robust performance in the second quarter of 2024, showcasing a continued upward trajectory in its business operations.
• The company reported impressive figures with revenues totaling $3.2 billion, reflecting a 6% increase compared to the same period in 2023.
• Adjusted earnings per share (EPS) also saw an appreciable rise, reaching $3.94, signifying a 15% increase.