Daily Brief Health Care: Celltrion Healthcare, Hanall Biopharma, Basecare Medical Device and more

In today’s briefing:

Alpha Generation Through Share Buybacks in Korea: 1Q 2023
Hanall Biopharma (009420 KS): Lead Pipeline Asset Moved a Step Closer to Commercialization in China
Basecare Medical Device (2170.HK)- There’s Valuation Repair Expectation, but Long-Logic Is Untenable

Alpha Generation Through Share Buybacks in Korea: 1Q 2023

In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in 1Q 2023.
We provide a list of 23 stocks in the Korean stock market that have announced share buyback programs in 1Q 2023.
Some of the larger companies (with more than 1 trillion won in market cap) that have recently announced share buybacks including Celltrion Healthcare have been outperforming the market.

Hanall Biopharma (009420 KS)‘s partner Harbour BioMed reported positive top-line results from Phase 3 trial of batoclimab in myasthenia gravis in China. 250K people suffer from myasthenia gravis in China.
Harbour BioMed plans to file for marketing approval of batoclimab this year. Hanall is eligible for high-single-digits to mid-teen percentage royalties on net sales of batoclimab.
Hanall reported record high revenue of KRW110 billion in 2022. However, net profit plunged 78% to KRW2 billion due to increased investments in R&D.

Basecare has its strength in reproductive genetics medical device industry. Its performance improved based on 22H1 results. If positive momentum continues, Basecare is able to achieve breakeven in foreseeable future.
However, the actual market penetration of assisted reproduction in China is much lower than expected. This means the growth ceiling of Basecase is uncertain, indicating potential problems in long-term logic.
Basecase’s market value has fallen below its cash balance. There’s a mismatch between the intrinsic value and market price, so we expect that valuation repair could occur in the future.

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