Daily Brief Health Care: Celltrion Inc, EMIS Group PLC, Viatris, Assertio Holdings, BB Biotech AG and more

• Celltrion Inc (068270 KS) reported Q4 results, with revenue, operating profit, and net profit declined YoY and QoQ. Absence of COVID-related products dragged revenue, while non-recurring expenses impacted margins.
• Pricing pressure in biosimilar products and elevated R&D expenses are negatively impacting bottom line. With pipeline progress and upcoming product launches, R&D expenses are expected to remain elevated.
• Celltrion expects to launch Humira biosimilar in the US in July 2023. This year, 8 players are expected to launch Humira biosimilar.

• A CMA’s Phase One investigation period began on 23 January to investigate whether the deal may result in a substantial lessening of competition. Deadline for the decision is 17 March.
• EMIS anticipates closing late Q1/early Q2 2023. The Permitted Final Dividend amounts to 21.1p. No final dividend has yet been declared, although theoretically it could happen around 17 March.
• Spread is 2.96%/29.39% (gross/annualised), assuming settlement by 15 April, as good as it gets for a stock with an average daily turnover of c.GBP7 million in the European space.

• Viatris delivered a mixed set of results as it failed to meet the revenue expectations of Wall Street but managed an earnings beat.
• They dealt with intense competition for important products like Wixela and the loss of exclusivity for Miacalcin and Perforomist.
• In addition, they acquired Oyster Point Pharma and Famy Life Sciences in January to create their new Viatris Eye Care division.

• ASRT could significantly benefit from a new guideline set by American Society for Gastrointestinal Endoscopy (“ASEG”) this week related to the use of indomethacin (Indocin) post ERCP surgery.
• Indocin is ASRT’s largest source of revenue and nearly all the revenue from off-line use related to post ERCP surgery.
• We updated our earnings model when ASRT issued preliminary fourth quarter results. We believe the ASEG guidance could lead to accelerated market expansion in coming months

According to BB Biotech’s (BION’s) investment team, the biotech industry remains in a very good position. Following a sell-off in the last two years, valuations are still close to the levels seen three years ago, reflecting ongoing challenges and despite the fundamental industry strength. In the sector, BION is differentiated from the Nasdaq Biotechnology Index by its concentrated portfolio (c 30 stocks). The investment team anticipates that 2023 will include multiple catalysts for the sector and for BION portfolio companies, including product launches, important clinical trial results, licensing deals and renewed M&A activity. During 2022 the investment manager, Bellevue Asset Management, strengthened the investment team with three new members (two data scientists and one neurologist).