In today’s briefing:
- Ono Pharmaceutical (4528 JP): Deciphera Acquisition Will Not Bring Immediate Respite
- Are the Lows “In” For This Pullback?; Market Dynamics Remain Bullish; Key Supports Holding
- Hansoh Pharmaceutical (3692.HK) – Growth Would Remain Strong in 2024, but Ameile Is Facing Headwinds
- Novartis AG: Positive Expectations for Scemblix & 5 Other Major Developments
Ono Pharmaceutical (4528 JP): Deciphera Acquisition Will Not Bring Immediate Respite
- Ono Pharmaceutical (4528 JP) is acquiring Deciphera Pharmaceuticals (DCPH US) for $25.60/share in cash through a tender offer. The total equity value of the acquisition is approximately $2.4B.
- Ono is expected to reap the benefit of Deciphera acquisition earliest from FY27. In the short-run, the company’s major problem of loss of revenue will not be addressed.
- Ono needs to stretch its balance sheet to fund Deciphera acquisition. The acquisition will be earnings dilutive for Ono. Pricey valuation of the deal is another deterrent.
Are the Lows “In” For This Pullback?; Market Dynamics Remain Bullish; Key Supports Holding
- While we are not yet out of the woods, we continue to see evidence that suggests the lows may be “in” for this pullback.
- Last week (4/23/24 Compass) we discussed the possibility that further downside was limited on the S&P 500 due to a multitude of reasons
- We view the latest pullback to 100-day MA on SPX as healthy/normal within the ongoing bull market. Pullbacks to the 100-day provided ideal entry points throughout the 2021 bull market
Hansoh Pharmaceutical (3692.HK) – Growth Would Remain Strong in 2024, but Ameile Is Facing Headwinds
- Hansoh’s performance in 2023 beat expectations, which was mainly driven by collaboration revenue. Revenue proportion of innovative drug business made breakthrough and has become the major performance driver.
- Ameile’s future revenue growth is critical to Hansoh, but it faces increasing competition. EGFR/c-MET BsAb represents the future trend. If HS-20117 is successful, then the story of EGFR would continue.
- In 2024, Hansoh is expected to receive an upfront payment of US$185 million from GSK. According to the management, revenue is expected to have double digit growth this year.
Novartis AG: Positive Expectations for Scemblix & 5 Other Major Developments
- In Q1 2024, Novartis delivered robust growth, reflecting in a double-digit sales growth and core margin expansion.
- Sales were up by 11% in constant currency, and core operating income was up by 22%.
- The core margin reached 38.4%, inching steadily towards the set goal of over 40% by 2027.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
