Daily Brief Health Care: China Medical System, Alkem Laboratories Ltd, IN8bio , Quipt Home Medical Corp and more

• A high disease burden, high demand for chronic treatment, and an ageing population makes China an excellent opportunity for an established pharma company.
• With 1/3 of the market cap in cash, a healthy payout ratio, and a FPE of under 8, CMS is one of the bargain beneficiaries in the Chinese healthcare space.
• The founder/CEO recently purchased 8m shares. He last bought shares in 2020-2021. The share price almost tripled afterwards.

• Alkem Laboratories Ltd (ALKEM IN) reports 1% revenue growth in Q4FY24. However, gross margin improved significantly backed by lower raw material cost and lower intensity of price erosion in U.S.
• For FY25, the company has guided for 10% YoY revenue growth, which is at par with the last five year’s average growth.
• Alkem expects to maintain FY25 gross margin and EBITDA margin at the current level. As API prices have become mostly stable, there is limited room for further margin expansion.

• IN8Bio is a clinical-stage, oncology-focused biotechnology company using ?d T cells against solid and hematological tumors.
• Its pipeline is built on the DeltEx platform & drug resistant immunotherapy (DRI) technology which have produced clinical candidates targeting leukemia & GBM.
• INB-100 is evaluating leukemia in a Ph1 study, while INB-200 & INB-400 are Ph1 and Ph2 assets evaluating GBM.

• Quipt is the 5th largest home medical equipment provider in the US, specializing in respiratory equipment and consumables for patients in a home setting.
• The company operates out of 125 locations in 26 states, with dual listings in Canada and the US.
• Despite a 26% increase in share count and $70 million rise in debt, Quipt’s stock price has fallen by 4% due to concerns about potential competition from GLP-1s and a Civil Investigative Demand regarding possible false claims to government healthcare programs.

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.