Daily Brief Health Care: Global Health (Medanta), IDEXX Laboratories, Shenzhen Edge Medical, Oryzon Genomics and more

• Global Health (Medanta) (MEDANTA IN) reported double-digit growth in revenue, EBITDA, and net profit during Q3 and 9MFY23, driven by increasing footfalls, rising ARPOB, and faster-than-expected ramp-up of new hospitals.
• The company plans to add 1,000–1,500 beds in next 2–3 years, with ~70% of the planned bed addition being at existing hospitals, thereby entailing lower capex per bed.
• Recently, Medanta has announced a new asset light partnership to launch a 300-bed hospital in Indore under operations and management arrangement. The hospital is expected to commence operation in FY27.  

• IDEXX had a strong finish to the year, reflected in the company’s all-around beat in the last quarter.
• Its revenues increased organically, driven by organic gains in CAG Diagnostic and strong growth in its water and software businesses.
• Organic revenue growth in the quarter was supported by solid organic growth across its major business segments and growth in diagnostic imaging and veterinary software revenues.

• MP1000 has strong technical strength, setting it apart from Toumai. SP1000’s advantages are more obvious and the competitive landscape is also better than multi-port surgical robots, indicating corner overtaking opportunity.
• With favorable policy support, Shenzhen Edge Medical (SEM HK) is embracing a golden opportunity. But the commercialization outlook of surgical robots in China is actually not optimistic.
• As a later-comer in surgical robots industry, without the synergy from parent company, Edge’s future sales performance could be even weaker. So, its valuation should be lower than Medbot.

FY23 is shaping up to be a busy clinical year for Oryzon with readouts and trial initiations expected across its lead assets. The next major clinical milestone for iadademstat in oncology is the initiation of the Phase Ib FRIDA study in second-line FLT3+ relapsed/refractory (r/r) acute myeloid leukaemia (AML) patients with the trial expected to start imminently. Oryzon’s lead central nervous system (CNS) clinical asset, vafidemstat, is being assessed for the treatment of borderline personality disorder (BPD) in the Phase IIb PORTICO study. Interim data readouts are expected from the trial in Q123, which we view as the next major upcoming catalyst for investor attention. Our valuation of Oryzon remains largely unchanged at €869.0m or €15.6 per share (previously €846.7m or €15.5/share).