Daily Brief Health Care: Peptron, Grifols , Jeisys Medical, VIOL , Medtide, SIGA Technologies, LogicMark , Achieve Life Sciences , Zimmer Biomet Holdings, Bio Techne Corp and more

• Peptron’s lack of single-stock futures means no risk-free arbitrage but also less speculative selling, making the 25% discount an attractive outright position opportunity.
• The low capital increase rate may stabilize the stock price, and more forfeited shares could lower the cost of securing subscription rights during the trading window.
• Consider buying rights during the trading period or targeting forfeited shares. Conservatively estimate the final offering price range to set a profitable cost for securing rights.

• Since mid-July, share-price spreads have generally widened across our European liquid universe of ordinary and preferred shares (9 have tightened, 8 widened, 2 remained at same level).
• Recommended trades long preferred / short ordinary shares: Atlas Copco, Grifols SA (GRF SM) (see section on the company), Media-for-Europe, Sixt.
• Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal.

• Jeisys Medical announced that it has decided to exchange shares with Syracus Subco, its largest shareholder. The stock exchange ratio between Syracus Subco and Jeisys Medical is 1 to 1.3575606. 
• The exchange date is 23 October. Through this stock exchange, Archimed Group (owner of Syracus Subco) seeks to delist Jeisys Medical (287410 KS).
• Jeisys Medical also announced that it plans to cancel 1,075,838 common shares, representing 1.4% of its outstanding shares. 

• Archimed, via its Korean entity Syracuse Subco, now holds 91.35% of Jeisys Medical (287410 KS) following the second tender offer. Jeisys shares will be delisted in the next couple months.
• Jeisys Medical (287410 KS) is a KOSDAQ 150 Index (KOSDQ150 INDEX) constituent and there will be a replacement for the stock in the index.
• Recent ad hoc replacements to the KOSDAQ 150 Index (KOSDQ150 INDEX) have traded well and that warrants positioning for this event.

• Medtide relies heavily on limited number of customers to contribute performance. If there is any significant reduction in demand by its major customers, Medtide’s performance growth would be materially/adversely affected.
• Due to geopolitical conflicts, pharmaceutical companies are becoming more cautious about their reliance on China CXO. So, the development of Medtide’s overseas business would become more uncertain in this context.
• Medtide’s business scale is still small and its position in the global peptide CXO industry is not as strong as described. Valuation of Medtide should be lower than peers.

Although the topline results of PALM 007 (studying SIGA’s tecovirimat in the treatment of mpox) did not meet the statistical significance for the full population (primary endpoint), we are encouraged by the clinically meaningful benefit reported over placebo in early-treated patients and in those with severe disease. The data highlight an opportunity to establish an effective regime for these key populations, given the lack of effective treatment options and the overall importance of early treatment in infectious diseases. PALM 007 was not a registrational study, and SIGA’s priorities in mpox are the four remaining ongoing studies targeting this indication, which may potentially support a mpox label in the US. Currently, tecovirimat is approved for mpox treatment in the EU and UK.

• LGMK has expanded its product portfolio with recently launched Freedom Alert Plus, Freedom Alert Mini & Aster.
• Incorporating both predictive and preventive tools as it innovates, new product features include advanced fall detection, geofencing for memory care, connected cloud & caretaker app support, sensors and AI / ML (machine learning), among others.
• By leveraging enhanced sensors, algorithms and ML technology to analyze movement patterns + other relevant data, LGMK technology can detect pattern changes that might indicate potential for falls (predictive technology), as well as provide health communications such as medicine reminders (preventative technology).

• Achieve Life Sciences is developing cytisinicline for use as a smoking cessation treatment in the United States and rest of world.
• Topline results from ORCA-2 were reported in April 2022 and for ORCA-3 in May 2023.
• Results exceeded expectations on safety & efficacy parameters.

• Zimmer Biomet Holdings, Inc.’s most recent quarterly performance reflects a steadied progress in its growth trajectory and continuous strategic advancements, though it faced specific challenges during the period.
• The company reported a year-over-year revenue growth of 5.6% on a constant currency basis for the second quarter of 2024.
• This marks Zimmer Biomet’s tenth consecutive quarter of mid-single-digit or higher growth.

• Bio-Techne Corporation recently held its earnings call for the fourth quarter of fiscal year 2024, during which the company announced in-line financial results with modest organic revenue growth of 1% year-over-year.
• This growth came amidst market stabilization and strategic execution by the company despite a complex external environment that included reduced biotech funding and significant budget recalibrations from large pharmaceutical entities and academia.
• 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.