Daily Brief Health Care: Eoflow, Medikit Co Ltd, Orthofix International Nv, Huaxia Eye Hospital Group, MariMed, InMed Pharmaceuticals , Oryzon Genomics and more

• Eoflow (294090 KS) filed a 117-page appeal against the amended preliminary injunction (PI), sparking a 16% share price rally. Insulet Corp (PODD US) is required to respond by 14 December.
• Eoflow argues that the Massachusetts District Court committed legal errors. However, Eoflow’s arguments are rehashed from those that the district court has already dismissed with balanced counterarguments. 
• The appeal is Eoflow’s last roll of the dice. Eoflow’s appeal brief worryingly notes that the PI profoundly imperils both the Medtronic transaction and its status as a going concern.

• Japanese medical products maker Medikit Co Ltd (7749 JP) Tuesday announced a buyback of ~12% of its shares from the founder’s company.
• The stock is extraordinarily illiquid. 12mo ADV is <US$40k/day. But Medikit runs 40% gross margins, 20% EBIT margins, and trades at an EV/revenue ratio of ~0.8x. It’s cash-rich, and cheap.
• But it’s an interesting situation. The buyback (and its reason) combined with the shareholder structure allow me to idly speculate this is an MBO candidate.

• In November, Orthofix International Nv (OFIX US) named Massimo Calafiore as incoming President and CEO. Mr. Calafiore has extensive knowledge in orthopedics and spine, and M&A integration expertise.
• Orthofix has performed well and operated smoothly following management transition. In 3Q23, revenue increased 61% YoY on a reported basis and 1% YoY on a pro forma basis to $184M.
• The company expects to deliver much higher adjusted profits next year and to exit 2024 cash-flow positive from an estimated $100 million outflow for 2023.

• Against the backdrop of China’s reopen after the pandemic is under control, the performance comparison of the four major ophthalmic hospitals in the A-share market has attracted investors’ attention.
• Aier Eye Hospital is already going downhill. Bright Eye Hospital leads Huaxia Eye Hospital in national layout/growth rate. He Eye Hospital has a big gap compared to the rest three.
• The “weaknesses” of Huaxia and He Eye Hospital in business layout isn’t obvious currently.But in good times, the impact of businesses with strong consumption attributes on performance would be amplified.

• MariMed has begun manufacturing and processing cannabis products in its new kitchen in Mount Vernon, Illinois.
• As often happens in cannabis, there were construction and regulatory delays, but the company expects to have its award-winning edibles in Illinois stores in time for the holidays.
• Illinois is the sixth-most populated state with 12.7 million residents.

• Unveiling INM-089 targeting AMD. InMed is expanding its rare cannabinoid cannabinol (CBN)-based ocular disease treatment pipeline with INM-089, targeting age- related macular degeneration (AMD).
• INM-089, a CBN analog, is InMed’s second ocular pharmaceutical program, with the company currently engaged in pre-clinical studies of INM-088, investigating its effects in the treatment of glaucoma.
• InMed’s ocular programs target leading causes of severe eyesight loss and blindness.

Oryzon has announced the receipt of a $0.5m grant from the Amyotrophic Lateral Sclerosis (ALS) Association to support the regulatory clinical development of the company’s histone deacetylase 6 (HDAC6) inhibitor, ORY-4001, as a potential treatment for ALS. We view this as a favourable advancement that enables the company to expand its preclinical pipeline. This news of this funding grant follows on the heels of Oryzon’s recently announced €45m convertible financing arrangement. Oryzon plans to progress ORY-4001 through various investigational new drug (IND)-enabling studies and we anticipate updates from the company as the data become available. The most significant upcoming catalyst for Oryzon is top-line readouts for the Phase IIb PORTICO trial for lead clinical asset vafidemstat for the treatment of borderline personality disorder, expected in Q124.