Daily Brief Health Care: Euroapi , United Therapeutics, Exact Sciences, Actinogen Medical, Medtronic Plc, TYK Medicines, InMed Pharmaceuticals , Classys and more

Key points

• EAPI is trading at a significant decrease of €5.10 per share, down from previous levels of €12.00-€13.00 before a downward revision of guidance
• The company is undergoing a strategic review after firing the CEO and facing multiple guidance changes, causing investors to lose faith in the management team
• EAPI was previously highlighted as a minimally levered spinout with potential for growth in CDMO work, but customer concentration with Sanofi as a major revenue contributor has been a factor in its discounted value compared to peers like SFZN

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• This is our first report on biotech major, United Therapeutics Corporation (UTC).
• The company posted solid financial results for the fourth quarter of 2023, marking the third consecutive quarter of record revenue, and the second consecutive year of record income.
• The company achieved over 20% growth in both quarterly and annual revenue for the fourth quarter and the full year.

• Exact Sciences Corporation showcased substantial growth and improved profitability throughout 2023.
• With a 24% increase in core revenue amounting to $2.5 billion and an uplifted adjusted EBITDA amounting to $362 million, the firm grew robustly.
• This success is largely credited to the advancement of its mission to eradicate cancer via the facilitation of innovative screening and precision oncology under major brands like Cologuard, Oncotype DX, and PreventionGenetics.

Having shown cognitive activity in prior trials, Actinogen began its XanaMIA Phase IIb study of lead candidate Xanamem in patients with cognitive impairment (CI) associated with mild-to-moderate Alzheimer’s disease (AD). The study will assess c 220 biomarker-positive AD patients, with interim results expected in H1 CY25. Actinogen recently reported results from a human positron emission tomography (PET) imaging study, which affirm the drug’s mechanism of action (MoA) in healthy subjects and patients with AD, by showing that Xanamem exhibited high target enzyme occupancy designed to impede cortisol production, as well as favourable safety and tolerability. Our risk-adjusted net present value (rNPV) remains essentially unchanged at A$528m.

• Medtronic delivered a solid quarter with its mid-single-digit revenue growth exceeding expectations.
• The fiscal ’24 third quarter earnings were underpinned by strength across multiple businesses like Core Spine, Cardiac Surgery, Structural Heart and Cardiac Pacing, along with robust growth witnessed across various international markets.
• Innovation-driven core technologies such as robotics, AI and closed-loop systems acted as significant growth propellers, with five AI products already FDA approved.

• Among core/key products, TY-302 and TY-2136b have to face fierce competition, with R&D progress lagging behind competing products.TY-9591 for brain metastases from NSCLC could be a breakthrough point for TYK.
• There would be a long time for the first product to generate revenue, but TYK is cash shortage.So, the survival risk is high. Such companies are less attractive to investors.
• Valuation of TYK after six rounds of financing was RMB3.08 billion. However, considering the weak sentiment and concerns on pipeline, valuation of TYK after IPO could fall below this level.

• BayMedica’s VP, Sales & Marketing, Jerry. P. Griffin joined us on The Water Tower Hour.
• Those interested can listen to the podcast on Apple Podcasts, Google Podcasts, Spotify, or our website.
• BayMedica is the commercial business arm of rare cannabinoids-based drug developer InMed Pharmaceuticals.

• Classys (214150 KS) achieved its highest performance ever in 2023. Revenue grew 27% YoY to KRW180 billion, 6% higher than the forecast of KRW170 billion announced early last year.
• As demand for equipment increased rapidly in major countries, overseas sales last year exceeded KRW100 billion for the first time, and specially in Brazil, annual sales exceeded KRW40 billion.
• With a positive outlook, Classys is expected to maintain growth trajectory. The company expects 2024 annual revenue of KRW225 billion, up 25% YoY.