Daily Brief Health Care: China Medical System, Oryzon Genomics, Satellos Bioscience 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.
• A transition period following the inclusion of four large drugs in the NDRL creates an opportunity following a big de-rating.
• 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 European Commission has selected Oryzon to support a new healthcare initiative furthering innovation in the region. As an associated partner of the recently announced Med4Cure initiative, Oryzon will focus on the validation of experimental epigenetic agents under a project termed VANDAM. We view this as another external endorsement of Oryzon’s robust position in epigenetics, seeking to address areas of unmet need. This collaboration opens up the potential for Oryzon along with the other two dozen selected participants to potentially access more than €6bn in funding and follows on the heels of several other notable collaborations, including the CRADA agreement with the National Cancer Institute for SCLC, the NET trial with the Fox Chase Cancer Center and the EVOLUTION trial with the Spanish Ministry of Science and Innovation.

• On May 14, 2024, Satellos Biosciences Inc. (MSCLF) announced financial results for the first quarter of 2024 and provided a business update.
• Satellos is on track to initiate a Phase 1 first-in-human clinical trial of its lead development asset SAT-3247 in mid-2024.
• The company has completed manufacturing bulk quantities of the drug and formulated the first tablets for use in the trial.