In today’s briefing:
- Immix Biopharma – NXC-201 gains orphan drug designation in ALA
- Paramount Bed Holdings (7817 JP): In-Line Q1 Result; FY24 Guidance Reaffirmed
- Public Opinion Is Slowly Catching Up, but the Change Has Only Just Begun
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Immix Biopharma – NXC-201 gains orphan drug designation in ALA
Immix has announced that the FDA has granted orphan drug designation (ODD) to CAR-T asset NXC-201 for amyloid light chain amyloidosis (ALA). This occurred approximately a month after the announced ODD for multiple myeloma (MM), the other indication that Immix is pursuing with NXC-201. The benefits of ODD include seven years of US market exclusivity post approval, tax credits for qualified clinical trials and exemption from the Prescription Drug User Fee (c $3m for a new drug). ODD is issued to drugs/biologics intended for the safe and effective treatment, diagnosis or prevention of rare diseases/conditions that affect fewer than 200k people in the US. Achieving ODD in both MM and ALA marks an important development for the progress of NXC-201, which has shown encouraging signs on both the clinical and regulatory fronts. We believe that the next readout (expected in September 2023) from the ongoing NEXICART-1 trial could be a significant catalyst for the company.
Paramount Bed Holdings (7817 JP): In-Line Q1 Result; FY24 Guidance Reaffirmed
- In Q1FY24, Paramount Bed Holdings Co Lt (7817 JP) reported 7% YoY revenue growth to ¥24B, due to solid performance in the medical care and the nursing care businesses.
- Due to higher SG&A expenses, operating profit grew just 2% YoY to ¥3.3B. Net profit rose 7% YoY to ¥2.9B, mainly due to 13% YoY increase in foreign exchange gains.
- Paramount has reiterated FY24 guidance, which calls for 6% YoY revenue growth, 4% YoY operating profit growth, and 6% YoY growth in net profit.
Public Opinion Is Slowly Catching Up, but the Change Has Only Just Begun
- Activist investors’ proposals were consistently based on increasing shareholder returns. The change in the environment, in which % of foreign shareholders increased while cross-held shares decreased, had a major impact.
- Regarding the selection of directors, discussion on contents of Skill Matrix should be more active, as it’s suspected that top management is selecting candidates who are aligned with their wishes.
- The voting standards of domestic institutional investors are iridescent and still dependent on public opinion for each proposal. The change in public opinion has only just begun.