Daily Brief Health Care: QuantumPharm, Agilent Technologies, OSE Immuno, Veeva Systems Inc Class A and more

• QuantumPharm (QUP HK) is looking to raise US$144m from its Hong Kong IPO.
• QuantumPharm is a R&D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&D solutions.
• In our previous notes, we looked at the firm’s past performance and PHIP updates. In this note, we share our thoughts on valuations. 

• Agilent Technologies was found to have declining earnings in Quarter 2 of 2024.
• Despite a drop in revenue, orders grew compared to the previous seven quarters, and earnings per share did surpass expectations.
• The company faced a difficult market environment but showed signs of future recovery at a slower pace than initially predicted.

OSE Immunotherapeutic’s FY24 has started off with a series of major wins, significantly bolstering the company’s clinical pipeline and liquidity. We believe the partnership with AbbVie (announced in February) for OSE-230, targeting chronic inflammation, the €8.4m public funding for Tedopi secured in April and the recent expansion of its R&D agreement with Boehringer Ingelheim (BI) are all positive endorsements of OSE’s discovery platform. Moreover, we expect the c €91m in non-dilutive inflows from these announced deals to extend OSE’s cash runway into 2027 (previously 2026), an important consideration given the still tight biotech funding environment. While some optimism from these announcements is already reflected in the share price (up 88% ytd), our revised valuation for OSE (€19/share) indicates potential for further upside with the upcoming milestones, including the Phase III initiation for lead asset Tedopi and Phase II readouts for Lusvertikimab, both anticipated imminently.

• Veeva Systems had a solid start to the year with first-quarter results that exceeded the company’s guidance.
• The total revenue during the quarter reached $650 million, and the non-GAAP operating income was $261 million.
• Despite facing macroeconomic headwinds, the company managed to execute well and deliver customer success.