In today’s briefing:
- EOFlow Tender Offer: Preconditions for Closure, Cancellation Risk, & Targetable Allocation
- Jiangxi Rimag IPO Preview: Empowering The Future of Medical Imaging Services in China
- Classys (214150 KS): Strong 1Q23 Result Lifted by Overseas Performance and Consumables Sales
- ResMed Inc.: On Track to Meet Global Demand for Connected CPAP and APAP Devices – Key Drivers
- DexCom Inc.: Launch of G6 Glucose Monitoring System & Other Drivers
- Eli Lilly and Company: Can Rezvoglar Destroy Sanofi’s Insulin Market Share? – Key Drivers
- IQVIA Holdings Inc.: Major Partnership With CENTOGENE & Other Drivers
- Merck & Co. Inc.: Acquisition of Prometheus Biosciences & Other Drivers
- AbbVie Inc.: Is The CytomX Collaboration Failure A Big Setback? – Key Drivers
EOFlow Tender Offer: Preconditions for Closure, Cancellation Risk, & Targetable Allocation
- The likelihood of the merger review not being approved appears to be low. Additionally, the purchase of only 3.8M additional shares is required, leading to a negligible cancellation risk.
- It is particularly noteworthy that the offering price of ₩30,000, targeting minority shareholders, may be adjusted upward depending on future share price increases.
- While there is a potential allocation risk, as Medtronic aims to delist the company, they are unlikely to lower the target quantity in the tender offer to a risky level.
Jiangxi Rimag IPO Preview: Empowering The Future of Medical Imaging Services in China
- Jiangxi Rimag Group (JIR HK), a China-based medical imaging center operator and provider of Rimag cloud services, filed for a Hong Kong IPO.
- Jiangxi Rimag Group (JIR HK) was backed by Goldman Sachs, leading VC firms in Asia, Baidu Inc., JD Health, and American healthcare investment firm OrbiMed.
- China’s medical imaging industry is experiencing a remarkable transformation, driven by rapid technological advancements, evolving healthcare needs, and supportive government policies.
Classys (214150 KS): Strong 1Q23 Result Lifted by Overseas Performance and Consumables Sales
- Classys (214150 KS) reported solid performance in 1Q23, with double-digit revenue growth, driven by expansion of domestic consumables sales for Shrink Universe and growth in overseas device and consumables sales.
- Operating profit increased 19% YoY to KRW 19.9 billion, leading to 380 basis point margin expansion to 51%. Net profit increased 46% YoY to KRW 18.8 billion.
- Classys continues to strengthen its competitiveness through product line and geography expansion. The company has reiterated 2023 revenue guidance of KRW170 billion, representing year-over-year increase of 20%.
ResMed Inc.: On Track to Meet Global Demand for Connected CPAP and APAP Devices – Key Drivers
- ResMed delivered a strong set of financial results in the last quarter and managed an all-around beat.
- While they are still addressing some supply chain challenges with the AirSense 11 platform, they are on track to meet the global demand for connected CPAP and APAP devices by the end of 2023.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
DexCom Inc.: Launch of G6 Glucose Monitoring System & Other Drivers
- DexCom had a strong quarter and managed an all-around beat with strong organic revenue growth of 19% compared to last year.
- The company’s momentum in global CGM adoption remains high, driven by the growing recognition of the unique experience DexCom provides.
- The launch of their G7 system has been met with enthusiasm, supported by a successful Super Bowl commercial that generated significant engagement and awareness.
Eli Lilly and Company: Can Rezvoglar Destroy Sanofi’s Insulin Market Share? – Key Drivers
- Eli Lilly is off to a mixed start in 2023, with volume-driven revenue growth led by its incretin portfolio, Verzenio and Jardiance.
- The new product category delivered $574 million in sales, while the new product and growth product categories together contributed 20 percentage points to volume increase.
- We give Eli Lilly and Company a ‘Hold’ rating with a revised target price.
IQVIA Holdings Inc.: Major Partnership With CENTOGENE & Other Drivers
- The last quarter proved to be yet another successful period for IQVIA as they delivered an all-around beat.
- With an 11% organic growth in revenue, IQVIA demonstrated the strength and diversification of their short- and long-cycle businesses, enabling them to navigate the macroeconomic dynamics effectively.
- The demand environment for the industry remained robust, with global clinical trial activity showing resilience and positive prospects for their commercial business.
Merck & Co. Inc.: Acquisition of Prometheus Biosciences & Other Drivers
- Merck & Co. made a strong start to the year, with an all-around beat and a good underlying performance across its major growth pillars.
- Excluding the impact of LAGEVRIO and foreign exchange, the company produced 15% underlying growth.
- In the United States, KEYTRUDA increased in all major tumor types and continues to gain popularity in earlier-stage malignancies.
AbbVie Inc.: Is The CytomX Collaboration Failure A Big Setback? – Key Drivers
- AbbVie delivered a decent result in the first quarter of the year with revenues above Wall Street expectations and earnings in line with the analyst consensus.
- Skyrizi and Rinvoq continued to perform well in the first quarter and are still on track to produce more than $11 billion in combined sales this year.
- Growth rates for both products in the first quarter are in line with the company’s estimation for the entire year.
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