Daily Brief Health Care: Haemonetics Corp, QuidelOrtho , China Shineway Pharmaceutical, Perrigo, Merit Medical Systems, Glaukos Corp, BB Biotech AG, Mira Pharmaceuticals and more

• Haemonetics Corporation’s first quarter fiscal year 2025 results reveal mixed outcomes in a challenging market scenario.
• The company reported a revenue of $336 million, which represents an 8% increase on a reported basis and a 3% organic growth.
• Despite the revenue growth, the adjusted earnings per diluted share decreased by 3% to $1.02, reflecting some strain from operational challenges and the dynamic market conditions.

• QuidelOrtho’s second quarter 2024 financial results were guided by substantial review and restructuring as the new CEO, Brian Blaser, begins to imprint his strategy on the company’s operations.
• The company reported $637 million in revenue and an adjusted EBITDA of $90 million.
• These figures align with the company’s expectations, indicating stable performance across its diverse geographical and operational spectrum.

• Shineway’s revenue experienced negative growth in 24H1 as expected, but net profit performance beat expectations (up 27.5% YoY). However, if excluding those one-time gains, net profit was down 14% YoY.
• In 24H2, Shineway’s performance is expected to pick up, and YoY revenue growth 2024 full-year would return to positive (e.g. 5-10% YoY). The only concern is TCM formula granule VBP.
• China Shineway Pharmaceutical (2877 HK)’s overall financial position is healthy.  However, even with large cash balance, the current dividend is not satisfactory, which has more room to improve.

• Perrigo Company plc’s recent earnings for Q2 2024 revealed both strengths and challenges within its portfolio of products and strategic initiatives.
• Under the leadership of CEO Patrick Lockwood-Taylor, the company has made significant progress in restructuring its operations and cost management, which is reflected in select financial strengths and strategic positioning evident in the quarterly outcomes.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Merit Medical Systems Inc. showcased robust fiscal progress in its second-quarter 2024 earnings.
• The company witnessed total revenue growth of 5.6% on a GAAP basis and 6.6% on a constant currency basis, amounting to $338 million, exceeding the forecasted performance.
• This growth was fueled by strong organic expansion and modest contributions from acquired products, with particularly notable performance in the Cardiovascular and Endoscopy segments.

• Glaukos Corporation’s second quarter earnings for 2024 revealed a 19% increase in consolidated net sales which amounted to $95.7 million, reflecting consistent growth across both U.S. and international markets, particularly in the glaucoma division.
• The company has upwardly revised its full-year net sales guidance for 2024 to $370 million – $376 million, indicating optimistic projections based on current performance.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

BB Biotech (BION) invests in innovative, rapidly expanding biotech companies. BION’s portfolio company Wave Life Sciences (Wave) recently announced a significant milestone in the field of genetic medicine: the first successful therapeutic RNA editing in humans. This news lifted Wave’s share price by c 60%. It follows recent positive developments in three of BION’s largest holdings, Alnylam, Intra-Cellular Therapies and Agios, which all saw substantial improvements in their longer-term revenue prospects after positive Phase III readouts. Wave’s news adds to the recent positive momentum in BION’s NAV, which rose by 5.2% in the year ended 30 September 2024, after several years of annual declines, although this return lagged the Nasdaq Biotech Index’s 12.3% rise. Yet the company’s share price declined by 8.1% over this period and the share price discount to NAV is currently over 15%, in stark contrast to an average NAV premium of c 10% over the past 10 years. With interest rates falling and the outlook for the biotech sector potentially brightening accordingly, as we argued in our August 2024 update, this may represent an opportunity for investors to acquire access to the exciting opportunities offered by this industry at what may be an uncommonly wide discount.

• MIRA Pharmaceuticals(MIRA) Company Sponsored Research Report