Daily Brief Health Care: Celltrion Pharm, Rubicon Research Limited, Exact Sciences, GSK , Hologic Inc, Medius Holdings, Nipro Corp, Poppins Holdings Inc, United Therapeutics, AFT Pharmaceuticals and more

• Local market views Celltrion’s shareholder survey as the start of the merger process, with a decision expected from the boards within two to three months if there’s no major opposition.
• Under Korean law, if Celltrion Pharm’s market cap is under one-tenth of Celltrion’s, the merger can proceed as a small-scale merger, allowing Celltrion to avoid shareholder approval and appraisal rights.
• We should leverage the merger’s high predictability to proactively target merger swap and appraisal rights spreads and build a strategy in advance.

• Rubicon Research Limited (1453591D IN) is looking to raise about US$130m in its upcoming India IPO. The deal will be run by Axis, IIFL, JM Fin and SBI Caps. 
• Rubicon Research is a pharmaceutical formulations company with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly, the United States.
• It was ranked among the top 10 Indian companies, in terms of total Abbreviated New Drug Application (ANDA) approvals, as per Frost & Sullivan (F&S).

• Exact Sciences Corp. recently reported its second quarter 2024 earnings demonstrating strong performance and strategic advancements in its diagnostic offerings.
• The company marked a significant milestone by screening over 1 million people with Cologuard for colon cancer within the quarter, the highest number ever recorded.
• Additionally, global testing for Oncotype DX also reached unprecedented levels.

• GSK’s recent quarterly report underlines a robust upward trajectory with significant growth figures, showcasing the strength and diversity of its product portfolio in pharmaceuticals and healthcare.
• The company reported a 13% growth in sales to GBP 7.9 billion and a 21% increase in core operating profit to GBP 2.5 billion.
• Core earnings per share also rose by 17% to 43.4p, excluding COVID solutions.

• Hologic had a strong third quarter in fiscal 2024, demonstrating resilience and strategic efficiency in navigating post-pandemic market conditions.
• The company reported total revenue of $1.01 billion and a non-GAAP earnings per share of $1.06, both numbers topping their guidance predictions.
• This marked a return to revenue growth, with a notable 3.1% increase compared to the previous year, signaling a solid recovery trajectory after the challenges posed by COVID-19 and subsequent global disruptions such as the chip shortage.

• FY06/24 revenue grew 8.7% YoY to JPY259.8bn, with operating profit at JPY1.3bn (-29.4% YoY) and net income at JPY1.1bn (-24.9% YoY).
• Gross profit in FY06/24 was JPY31.1bn (+6.1% YoY) with SG&A expenses at JPY29.7bn (+8.5% YoY), maintaining an SG&A ratio of 11.5%.
• FY06/25 revenue is projected at JPY280.0bn (+7.8% YoY), with operating profit at JPY1.4bn (+5.5% YoY) and net income at JPY1.3bn (+13.8% YoY).

• Consolidated sales increased by 8.4% YoY, driven by strong performance in Medical-Related, Pharmaceutical-Related, and PharmaPackaging businesses.
• Operating profit declined 21.1% YoY due to rising raw material prices, increased labor costs, and higher SG&A expenses.
• Recurring profit decreased 27.9% YoY due to higher interest expenses and increased equity in losses of affiliates.

• Revenue increased to JPY15.7bn (+13.4% YoY), with operating profit at JPY710mn (+379.7% YoY) and recurring profit at JPY743mn (+370.3% YoY).
• Family Care Services revenue grew due to expanded babysitter services, while Edu-care business saw steady growth from new nursery schools.
• SG&A expenses rose to JPY2.5bn (+2.7% YoY) due to higher taxes, public charges, and call center and system maintenance expenses.

• United Therapeutics Corporation reported a strong second quarter for 2024, showcasing significant strides in revenue growth and continued advancement in its product lines and clinical trials.
• With a strategy delineated into three distinct waves—established products, next-generation treatments, and innovative organ manufacturing—the company is steering a future-oriented path, albeit with candidly acknowledged challenges and uncertainties, particularly regarding clinical trial outcomes for its second-wave products.
• The positive takeaways include a notable 20% rise in revenue year-over-year, reaching $715 million.

AFT Pharmaceuticals has expanded its licensing partnership with Hikma in the US to include distribution of the recently launched Combogesic tablets (Maxigesic Rapid). We view this as a logical step, given Hikma’s established footprint in the US, with synergistic benefits likely on costs and sales uptake. Hikma already holds exclusive distribution rights to Maxigesic/Combogesic IV in the US and will now also market the tablet formulation in the same hospital and ambulatory setting. Management expects to book the first sales within CY24 and, while the deal economics have not been fully disclosed, the agreement includes a profit share for Hikma according to our understanding. Note that unlike the IV formulation, AFT’s sales strategy for the tablets entails having different distribution partners across sales channels. The first distribution agreement for the Combogesic tablets was signed with Alexso in June 2024.