Daily Brief Health Care: Eoflow, Hogy Medical, Elevance Health , Cigna Group/, Mckesson Corp, Paradigm Biopharmaceuticals, Teleflex Inc and more

• Medtronic Plc (MDT US) aims to acquire Eoflow (294090 KS) through share purchase agreements (SPA), a share subscription agreement (SSA) and a public tender offer at KRW30,000.
• The shares are trading wide to terms due to key risks – regulatory approvals and the minimum acceptance condition (Medtronic owns 53.02% of the post-SSA outstanding shares).
• The regulatory approvals should be forthcoming due to minimum competition issues. The minimum acceptance condition requires a minority acceptance rate of 15.7%, which is achievable due to an attractive offer.

• Hogy Medical (3593 JP) reported mixed FY23 result. Revenue and operating profit were ahead of guidance while net profit missed guidance mainly due to a one-off loss of ¥464M. 
• For FY24, Hogy guided for 5% revenue growth. However, operating, and net profits are expected to decline 23% and 19%, respectively, due to rising costs and exchange rate fluctuations.
• While Hogy will continue cost cutting and improving productivity, the company is not expected to fully offset the cost pressure. Hence near-term outlook for the company remains bleak.

• Elevance Health, Inc. has been active in the M&A market with the divestiture of its life disability business and a “new markets” acquisition.
• However, evidence suggests that success is not guaranteed, according to the company.
• The company’s stock has been downgraded to a moderate buy.

• The last quarter was an all-around beat for Cigna with revenues and earnings well above Wall Street expectations.
• Evernorth, including pharmacy benefit services, Specialty Pharmacy, and Evernorth Care, retained, expanded, and won new relationships.
• Cigna Healthcare’s health benefits platform achieved revenue and customer growth, with solid performance across U.S. commercial, U.S. government, and international health businesses.

• McKesson managed an all-around beat in the last quarter, closing out a solid fiscal 2023 with full-year revenues of $277 billion and adjusted earnings per diluted share of $25.94.
• The core Pharmaceutical Distribution business supported growth in the U.S.
• Pharmaceutical segment, and they divested their European operations to streamline their portfolio.

Paradigm is focused on the development of injectable pentosan polysulfate (iPPS) for the treatment of osteoarthritis (OA). While the company has several active human clinical trials, it is also assessing iPPS in a canine model due to the similarities in disease biology. Furthermore, since dogs have a shorter lifespan than humans, the full progression of the condition can be assessed over a condensed period. Management believes that this could be advantageous in evaluating the disease-modifying OA drug (DMOAD) status of iPPS, a key goal for Paradigm. The latest data show that iPPS demonstrates durable effects on pain, function and cartilage volume in the canine OA model at the three-year human equivalent time point (canine 26 weeks). These positive results add to a growing data package to support iPPS as a potential DMOAD. Paradigm intends to present this to the FDA and EMA in H2 CY23, and the outcome of these discussions could represent a significant catalyst for the company, in our view.

• Teleflex had a strong start to 2023 with an all-around beat.
• For the first quarter, the revenues of Teleflex were $710.9 million, a year-over-year increase.
• Teleflex continues to benefit from its diversified portfolio and viewed strength across its largest product categories, including OnControl, balloon pumps, and complex catheters.