In today’s briefing:
- China TCM (570.HK) Update – Behind The Share Price Plunge and Prospects for Privatization Progress
- Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (May and June 2024)
- ABL Bio Capital Raise of 140 Billion Won
- Samsung Biologics (207940 KS): Gaining Momentum on New Approval and Contract Wins; Hold Shares
- Fresenius Medical Care AG & Co.: How Are They Executing Portfolio Optimization through Divestitures? – Major Growth Drivers
- Elanco Animal Health Incorporated: Will The Accelerated Global Rollout of Zenrelia Boost Its Top-Line? – Major Growth Drivers
- Ionis Pharmaceuticals Inc.: Expanding Pipeline with Promising Drug Candidates! – Major Growth Drivers
- Globus Medical Inc.: How Are Their Strategic Acquisitions and Partnerships Catalyzing Growth? – Major Growth Drivers
- DENTSPLY SIRONA Inc.: Facing Economic Headwinds with a Strategic Focus on Orthodontics and Imaging! – Major Growth Drivers
China TCM (570.HK) Update – Behind The Share Price Plunge and Prospects for Privatization Progress
- The slow progress of privatization is related to recent high-level changes in CNPGC. Decisions on SOE deals with “strategic purpose” require careful considerations, not based on “one leader’s personal preferences”.
- Based on public information, we cannot find convincing reason to prove that CNPGC has changed its mind.There’re rumors that China TCM’s privatization is still considered important project on the agenda.
- China TCM’s has strong fundamentals to support valuation. If there is no announcement, the privatization process is expected to proceed as usual, and we continue to wait for the voting.
Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (May and June 2024)
- In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in May and June 2024.
- On average, the share buyback announcements for the 13 companies that announced share buybacks in Korea represented 1.7% of outstanding shares.
- Major companies that have announced share buybacks in Korea in the past two months include Celltrion Inc (068270 KS), SK IE Technology (361610 KS), and NCSOFT Corp (036570 KS).
ABL Bio Capital Raise of 140 Billion Won
- On 2 July, ABL Bio (298380 KS) announced a capital raise worth 140 billion won.
- The capital raise involves 5.77 million new shares (10.7% of outstanding shares post capital raise) at 24,229 won per share (current price is 24,150 won).
- The proceeds from the capital raise will be used to develop next-generation ADCs (Antibody Drug Conjugates), including bispecific antibody ADCs.
Samsung Biologics (207940 KS): Gaining Momentum on New Approval and Contract Wins; Hold Shares
- Samsung Biologics (207940 KS) has signed the largest ever single CMO contract worth KRW1.46T ($1.1B) with an undisclosed U.S.-based pharmaceutical company. The contract value represents ~40% of 2023 standalone revenue.
- Within the first half of the year, Samsung Biologics has secured order worth of KRW2.6T, compared with order win of KRW3.5T in full-year 2023.
- Samsung Bioepis has received FDA approval for Stelara biosimilar Pyzchiva, which is expected to marketed in early 2025. So far, the FDA has approved two other biosimilars of Stelara.
Fresenius Medical Care AG & Co.: How Are They Executing Portfolio Optimization through Divestitures? – Major Growth Drivers
- Fresenius Medical Care, in its recent financial results, highlighted its commitment to continuing transformation and improvement across its segments.
- Initiatives to streamline organizational structures, enhance clinic utilization, and advance strategic growth areas, notably in value-based care, were emphasized.
- The company’s focus on optimizing manufacturing and supply chain processes is a critical element in its strategy to achieve margin improvements by 2025.
Elanco Animal Health Incorporated: Will The Accelerated Global Rollout of Zenrelia Boost Its Top-Line? – Major Growth Drivers
- Elanco Animal Health Incorporated has demonstrated a strong start to 2024 with positive developments in multiple areas of its business, despite facing some challenges.
- The company has achieved encouraging financial and operational results, underscored by success in its strategic initiatives aimed at enhancement and innovation.
- Starting with the financials, Elanco surpassed its revenue, adjusted EBITDA, and adjusted EPS guidance for Q1 2024, indicating robust underlying business performance.
Ionis Pharmaceuticals Inc.: Expanding Pipeline with Promising Drug Candidates! – Major Growth Drivers
- Ionis Pharmaceuticals commenced the year 2024 with notable strides, particularly through the launch of WAINUA in the U.S. This product, among others in the pipeline, is expected to lead the company towards a more independent operation in drug commercialization.
- The company’s executives displayed confidence in the potential of upcoming products like olezarsen and donidalorsen to transform their respective therapeutic areas and achieve market penetration based on strong clinical results.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Globus Medical Inc.: How Are Their Strategic Acquisitions and Partnerships Catalyzing Growth? – Major Growth Drivers
- Globus Medical recently disclosed its financial results for the first quarter of 2024, showcasing significant growth and strategic advancements post the integration with NuVasive.
- The company reported a remarkable 119% increase in sales, reaching $607 million, and a 36% rise in non-GAAP EPS to $0.72.
- This period marks the first quarter of the combined field organizations of Globus and NuVasive, underscoring a robust integration process aimed at streamlining operations and escalating market reach.
DENTSPLY SIRONA Inc.: Facing Economic Headwinds with a Strategic Focus on Orthodontics and Imaging! – Major Growth Drivers
- DENTSPLY SIRONA reported its results for the first quarter of 2024, shedding light on both the advancements and ongoing challenges within its diverse portfolio.
- The company’s organic sales saw a slight decrease, declining by 1.9%, affected largely by lower sales in its Connected Technology Solutions (CTS) and Essential Dental Solutions (EDS) segments, although this was partially offset by growth in Orthodontic & Implant Solutions and Wellspect HealthCare.
- CTS notably faced headwinds due to unfavorable macroeconomic conditions and competitive pressures, particularly in imaging equipment.
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