In today’s briefing:
- China Traditional Chinese Medicine (570 HK): Never a Dull Moment as Profit Warning Lands
- Eoflow: Rights Offering of 82 Billion Won and [Medtronic & Eoflow – Don’t You Forget About Me]
- TCM (570 HK): Profit Warning Is No Biggie
- Gilead Sciences: Innovations in Oncology & Cellular Therapy Along With Anti-Viral Focus! – Major Drivers
- Viatris Inc.: Unlocking The Dry Eye Disease Market With Tyrvaya! – Major Drivers
- Royalty Pharma: Expanding Clinical and Regulatory Event Horizons! – Major Drivers
- NRBO: Data from Part 1 of Phase 1 Trial of DA-1726 in 3Q24
China Traditional Chinese Medicine (570 HK): Never a Dull Moment as Profit Warning Lands
- China Traditional Chinese Medicine (570 HK) profit warning notes that the 1H24 net profit would decrease by 60%-70% YoY due to pricing pressure, higher impairment losses and remedial taxes.
- The profit warning could pose a risk to the scheme, as the consortium can withdraw if there is an adverse material change in China TCM’s profits or prospects.
- If there were a danger of triggering the MAC clause, the consortium would not have made the regulatory submissions. The flip side is that the warning helps the shareholders vote.
Eoflow: Rights Offering of 82 Billion Won and [Medtronic & Eoflow – Don’t You Forget About Me]
- After the market close on 21 August, Eoflow (294090 KS) announced a rights offering capital raise of 9.1 million new shares, representing share dilution of 23%.
- Based on the expected rights offering issue price of 9,040 won, the company is expected to raise 82.2 billion won in this capital raise.
- Eoflow has monthly cash burn rate of about 3.3 billion won. If the rights offering is successful, it would have adequate capital resources for about a couple of years.
TCM (570 HK): Profit Warning Is No Biggie
- China Traditional Chinese Medicine (570 HK) flagged a 60-70% drop in its 1H24E net profit versus 1H23, due to reduced sales/profit of TCM concentrate, bad debt provisions, and remedial taxes.
- MAC triggers? No – Sinopharm won’t exercise such right, even if one was ostensibly triggered. I’d be surprised if Sinopharm wasn’t fully aware of TCM’s underlying operations.
- Get involved on any dips today. Trading wide at a 11.7%/38.7% gross/annualised spread, assuming Dec-end payment.
Gilead Sciences: Innovations in Oncology & Cellular Therapy Along With Anti-Viral Focus! – Major Drivers
- Gilead Sciences Inc. showcased a solid performance for the second quarter of 2024, marked by robust commercial execution and growth across key therapeutic areas such as HIV, liver diseases, and oncology.
- Notably, Biktarvy, an HIV treatment, observed an 8% year-over-year growth, while Trodelvy in oncology saw a 23% increase, and cell therapy revenues increased by 11%.
- Additionally, the company reported disciplined management of operating expenses which significantly contributed to bottom-line growth.
Viatris Inc.: Unlocking The Dry Eye Disease Market With Tyrvaya! – Major Drivers
- Viatris has delivered a solid performance in the second quarter of 2024, marking the fifth consecutive quarter of operational revenue growth.
- Under the leadership of CEO Scott Smith, the company, which was formed from the merging of Mylan and Upjohn, a division of Pfizer, has effectively integrated two global entities and streamlined its operations through strategic divestitures.
- This strategic realignment has evidently positioned Viatris at a pivotal point for future growth, focusing strongly on expanding its innovative products alongside its stable base business.
Royalty Pharma: Expanding Clinical and Regulatory Event Horizons! – Major Drivers
- Royalty Pharma experienced a strong second quarter for the 2024 fiscal year, outperforming earlier guidance with a 12% increase in portfolio receipts which include royalty and other income.
- The company’s robust performance can be attributed to an 11% growth in royalty receipts, indicating solid recurring cash flow from their extensive and high-quality portfolio of more than 35 commercial products.
- 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.
NRBO: Data from Part 1 of Phase 1 Trial of DA-1726 in 3Q24
- On August 14, 2024, NeuroBo Pharmaceuticals, Inc. (NRBO) announced financial results for the second quarter of 2024 and provided a business update.
- The company recently completed enrollment in the single ascending dose (SAD) Part 1 portion of the Phase 1 trial of DA-1726 and we anticipate topline results in the third quarter of 2024.
- The multiple ascending dose (MAD) Part 2 portion of the Phase 1 trial is enrolling and topline results are expected in the first quarter of 2025.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
