Daily Brief Health Care: Japan Eyewear Holdings , Innova Captab, Blueprint Medicines, Bio-Rad Laboratories A, SAI Life Sciences, Genomma Lab Internacional Sab, Tasly Pharmaceutical Group, CompuGroup Medical SE & Co KgaA, Scilex Holding , Talkspace and more

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• Reently-Listed Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), and Intermestic (262A JP) were added to the TOPIX index at the end of November 2024.
• Our long-term pre-event candidate Japan Eyewear Holdings (5889 JP) has applied for a Section Transfer to the Prime Market which means there could be TOPIX Inclusion in the near future.

• Innova Captab (1605221D IN)’s New Jammu facility to be commercialized by Q3 FY25, expanding capacity and product range.
• Strong order pipeline, diversified segments (CDMO, branded generics), and high-margin segments to drive profitability.
• Aiming for 25-30% revenue CAGR and 4-5% margin expansion in upcoming years.

• Blueprint Medicines Corporation, during its third quarter of 2024 financial results presentation, highlighted both promising developments and ongoing challenges.
• The company reported robust revenue growth, primarily driven by the performance of AYVAKIT, which achieved $128.2 million in net product revenue, marking a 137% year-over-year increase.
• This strong performance led the company to raise its annual revenue guidance to between $475 million and $480 million, positioning AYVAKIT on track for substantial long-term revenue, potentially exceeding $2 billion.

• Bio-Rad Laboratories, Inc. presented a mixed set of results for the third quarter of 2024, reflecting ongoing challenges and some positive developments across its business segments.
• The company reported net sales of $650 million, a 2.8% increase from the previous year on a reported basis, attributed largely to its Clinical Diagnostics segment.
• On a currency-neutral basis, sales increased by 3.4% year-over-year, driven primarily by a 6.4% increase in the Clinical Diagnostics group led by strong demand for quality control products, especially in the Asia Pacific region.

• The IPO of SAI Life Sciences, a contract research, development, and manufacturing organization,  is scheduled to open on December 11. The IPO consists of fresh issue as well as OFS.
• Out of the fresh issue of proceeds, the company intends to use INR7.2B for repayment/prepayment of outstanding borrowings. As of September 30, 2024, total outstanding borrowing stands at INR7.6B.
• We have high conviction on the growth prospect of SAI Life Sciences. Considering FY25 annualized post-IPO EPS of INR2.69, the company seeks a P/E valuation of 186.9–203.8x. 

• After a stunning YTD performance (up 90.68% as of 12/9/24 vs MEXBOL 9.05% down), we continue to see solid upside ahead.
• Market conditions for most of the company’s segments are expected to remain mostly favorable, with FX remaining a neutral-to-positive factor amid its MXN-denominated costs.
• From a valuation perspective, the company used to trade at higher levels —even in the double-digit EV/EBITDA range— some years ago.

• Based on the new announcement released by CR Sanjiu, due diligence, auditing, evaluation, valuation and verification of material assets reorganization are in progress. Approvals by the SASAC/SAMR haven’t been obtained.
• Sanjiu is now facing performance headwinds due to VBP. So, Sanjiu needs new/stable performance increments to alleviate future performance pressure, and completing the acquisition of Tasly becomes even more urgent.
• China Resources excels in M&As and has strong internal business integration capabilities.We’re optimistic about the future synergies after the merger. Valuation for Tasly is expected to reach P/E of 30.

• CVC announced a voluntary public tender offer for CompuGroup Medical at €22 per share, a 33.5% premium, valuing the company at €1.13 billion equity value and 7.8x EV/EBITDA.
• The offer highlights CompuGroup’s strong position in healthcare IT, with 75% recurring revenues and growth potential in Ambulatory and Hospital Information Systems supported by digitization trends and AI innovations.
• The Gotthardts retain their 50.1%. CompuGroup’s board welcomes the strategic partnership and intends to recommend the offer, with plans to delist after completion in H1 2025. Spread is 1.36%/4.60% (gross/annualised).

• SCLX is filling a much-needed area of the health care sector, that of developing non-opioid pain relief products.
• The company already has commercialized products that are proven to improve patients’ lives.
• The company announced a deal with a developer of a Phase 2 drug with a large market potential to be the exclusive developer and have the right to commercialize the treatment targeting obesity and Alzheimer’s disease.

• Talkspace offers an asymmetric risk/reward opportunity in the defensive healthcare sector due to increasing demand for mental health care
• The company has a strong balance sheet with significant net cash balance, recent profitability, and is expected to grow revenue by 20% annually
• With limited downside risk and potential for substantial upside, particularly in their B2B business, Talkspace presents an enticing investment opportunity with minimal direct-to-consumer exposure

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.