Daily Brief Health Care: Bumrungrad Hospital Pub Co, 160 Health International, Bio-Rad Laboratories A, Enhabit , QuantumPharm, Royalty Pharma and more

• In 2023, Bumrungrad Hospital Pub Co (BH TB) reported 23% YoY revenue growth to THB25.6B, driven by 32%, 17%, and 11% YoY growth in international, expat, and Thai patients, respectively.
• Driven by high margin international patients, increasing inpatient revenue, and continued cost management, gross profit, EBITDA, and net profit margin expanded in 2023.
• Unrest in Middle-East remained an overhang on BH’s shares. However, revenue from Middle-East patients increased at 23.3% in H2 2023 compared to H1 2023.

• 160 Health collaborates with medical institutions and then get access to high-caliber medical professionals, which helps to attract patients/other business parties. So, its business model is B2B2C, similar to ClouDr.
• However, ClouDr has much better performance than 160 Health, because ClouDr has established moat/barriers to more effectively monetize medical resources, while 160 Health is clearly lagging behind in this regard.
• 160 Health’s revenue mainly comes from sales of pharmaceutical and healthcare products, whose gross margin is very low. As the competition intensifies, the C-end customer acquisition cost would also increase.  

• This is our first report on life science research and clinical diagnostic products manufacturer, Bio- Rad Laboratories.
• The company’s results exhibit resilience with substantial room for improvements and growth in the coming years.
• Bio-Rad’s FY 2023 net sales of $2.671 billion reflect a decrease by 4.7% on a reported basis as compared to 2022.

Key points

• Enhabit Inc., the Home Health & Hospice unit spun off from Encompass Health, is undergoing a strategic review that could result in a potential sale of the company.
• Analysts estimate that if the company is sold, it could fetch a price 50-100% higher than its current value, with a potential equity value of $1.0bn or $20 per share.
• The opportunity for a sale exists due to the company’s undervaluation compared to its parent company, Encompass Health, as well as negative surprises in CMS rates and missed guidance, leading to activist pressure and a strategic review.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• QuantumPharm (QUP HK) (Xtalpi) is looking to raise US$200m in its upcoming Hong Kong IPO.
• QuantumPharm is a R&D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&D solutions.
• In this note, we will talk about the not so positive aspects of the deal.

• Royalty Pharma reported a strong year of results in 2023, which demonstrated significant enhancements of its portfolio.
• The company reported 9% growth in portfolio receipts and an increase in royalty receipts by 8%.
• A total of $2.2 billion was deployed in cash for transactions while $4 billion in transactions was announced, making it a remarkable year for capital allocation.