In today’s briefing:
- KOSDAQ150 Rebalance in December 2023 Highlighted by Locals
- Livzon Reloads Diagnostic Spin-Off
- Keymed Biosciences (2162.HK) – Looking Forward to the Next Leap in Valuation
- Aspira Women’s Health, Inc. – Reports 3Q23 Results
- Basilea Pharmaceutica – Incremental acquisition to arsenal; new guidance
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KOSDAQ150 Rebalance in December 2023 Highlighted by Locals
- This article discusses the potential inclusions and exclusions of KOSDAQ150 rebalance in December 2023 (especially those that are highlighted by the locals).
- The potential inclusion candidates include Lunit, Shinsung Delta Tech, and JNTC. The eight potential inclusion candidates are up on average 122% YTD, sharply outperforming KOSDAQ in the same period.
- Stocks that are expected to be excluded in the KOSDAQ150 index include Aju IB Investment, HFR, Danal, and Sangsangin.
Livzon Reloads Diagnostic Spin-Off
- Back in late 2020, Livzon Pharmaceutical Group (1513 HK) proposed spinning off 39.4%-held Livzon Diagnostics on Chinext. After numerous filings with the regulators … crickets.
- Livzon has now proposed listing Livzon Diagnostics on the National Equities Exchange and Quotations with an intention of transitioning listed shares to the Beijing Stock Exchange (BSE).
- The CSRC recently introduced a raft of initiatives to spur investor interest in the BSE. After all-but-abandoning the prior listing, Livzon looks to be cashing in on this recent excitement.
Keymed Biosciences (2162.HK) – Looking Forward to the Next Leap in Valuation
- Abrocitinib/Upadacitinib/Dupilumab will all exert great pressure on the future commercialization space of CM310 in China. If Keymed doesn’t run head-to-head trials with dupilumab, CM310’s internationalization outlook would be gloomy.
- Compared with IL-4 that has been almost occupied by dupilumab, Keymed has more opportunity on TSLP. Even with Keymed-AstraZeneca deal, our valuation of CMG901 is cautious based on our analysis.
- The current valuation of Keymed is not cheap. The next big catalyst to share price is a new license-out deal with MNC on CM310/CM326, marking the beginning of qualitative changes.
Aspira Women’s Health, Inc. – Reports 3Q23 Results
- Aspira Women’s Health reported 3Q23 financial results, mostly in line with our estimates.
- Revenue of $2.2 million was below our estimate, but good expense control is in place and is expected to continue.
- Our estimates for 2023 and 2024 remain in line with our prior estimates.
Basilea Pharmaceutica – Incremental acquisition to arsenal; new guidance
Basilea has bolstered its drug pipeline with the in-licensing of fosmanogepix, a broad-spectrum antifungal candidate, from Amplyx Pharmaceuticals (a Pfizer affiliate). Fosmanogepix is a clinical-stage, potentially first-in-class broad-spectrum antifungal treatment and Basilea plans to initiate Phase III trials in mid-2024. Deal consideration includes $37m in upfront payments and milestones of up to $496m ($110m to Pfizer, and $396m from previous agreements), of which the majority relates to regulatory and commercial milestone events, and tiered single-digit royalties. We view this as a favourable transaction for Basilea and note that it is in line with the company’s previously disclosed plans to expand its late-stage product pipeline. In our view, fosmanogepix represents a promising near-term commercial opportunity as the legacy portfolio matures, provided that the data continue to be supportive. As part of this new update, management has also provided revised full-year 2023 financial guidance. We will update our model and valuation to reflect this deal. Our 2023 and 2024 estimates are under review.