Daily Brief Health Care: China Shineway Pharmaceutical, Assertio Holdings, MariMed and more

In today’s briefing:

China Shineway Pharmaceutical (2877.HK) 23Q1 – Growth Is Likely to Slow in Coming Quarters
ASRT: Asserting a New Price Target, $10
Marimed, Inc. – Exceeds 1Q Revenue and Adjusted EBITDA Estimates

China Shineway Pharmaceutical (2877.HK) 23Q1 – Growth Is Likely to Slow in Coming Quarters

Shineway’s 23Q1 performance growth exceeded expectations, mainly driven by TCM formula granules products and injection products. A surge of COVID infection rate in China since 22Q4 was an important reason.
Based on data, revenue proportion of COVID-19 related products is not low. So, related sales growth in following quarters this year would decrease as the dividend period of pandemic ends.
As the growth of TCM formula granules is expected to offset the slowdown of COVID-19 TCM products, Shineway’s overall revenue growth would still be strong in 2023. Valuation isn’t cheap.

ASRT reporting better than expected first quarter results were positively overshadowed by the increase in sales of ROLVEDON at Spectrum Pharmaceuticals (SPPI)
There had been concerns ROLVEDON sales would not grow fast enough to warrant the valuation ASRT was paying for SPPI. Those concerns were squashed
ASRT reported first quarter revenue of $42.5 million compared to our estimate of $37.8 million

MariMed reported first-quarter revenue of $34.4 million, which exceeded our estimate of $32.5 million and consensus of $32.9 million.
This is a 9.90% Y/Y increase and a 3.91% decline Q/Q. 1Q is typically a seasonally softer quarter for cannabis companies.
With new stores opening in Massachusetts, Illinois, and Ohio, plus Maryland moving to adult-use sales in July, revenue should ramp up through 2023.

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