Daily Brief Health Care: QuantumPharm, Medtide, Telix Pharmaceuticals, Jiangsu Hengrui Medicine, Longeveron , Grifols , Sotera Health Company, Adaptimmune Therapeutics and more

• QuantumPharm (QUP HK) raised US$126m 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.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• Medtide (1268709D CH) is looking to raise at least US$100m in its upcoming HK IPO. The deal will be run by Morgan Stanley and Citic Securities.
• Medtide is the third largest peptide-focused contract research, development and manufacturing organization (CRDMO) worldwide in terms of sales revenue in 2023, according to F&S. 
• Its full-cycle services range from early-stage discovery, pre-clinical research and clinical development to commercial-stage production.

• Telix Pharmaceuticals (TLX AU) is looking to raise around US$190m in its US ADS listing. The bookrunners on the deal are Jefferies, Morgan Stanley, Truist Securities, and William Blair.
• TLX is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutic and diagnostic radiopharmaceuticals.
• In this note, we talk about the updates since our last note and current deal dynamics.

• Around RMB5 billion generic drugs would be included in VBP in 2024/2025 (e.g. sevoflurane/Ioversol/butorphanol tartrate). So, the assumption that all the negative effects of VBP have cleared up isn’t correct.
• Hengrui’s innovative drugs would lose growth momentum after they reach peak sales. It’s difficult for Hengrui to maintain its scale expansion or achieve the over 20% YoY revenue growth.
• Hengrui’s PE would fall below 30 (or even below 20) in the future, which means its valuation would start to enter a downward trend. Current high valuation cannot be justified.

• Longeveron is focusing on using its primary treatment, Lomecel-B, to fight a rare pediatric heart birth defect that devastates families.
• The company announced the completion of an encouraging meeting with investigators involved in the ongoing trial of Lomecel-B for the treatment of HLHS.
• Additionally, the LGVN announced it has signed its first contract for the use of its state-of-the-art manufacturing facility.

• Grifols facing controversy over high debt, aggressive accounting practices, and financial sustainability doubts
• Despite challenges, Grifols is a major player in blood plasma-derived therapies market and has improved margins
• Company generated over EUR700m in free cash flow in 2020, expected to return to positive cash flow in 2025 with decreased costs and slowed growth investments; recent asset sale to reduce debt and new CEO joining to work towards stable financial future

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.

• SHC is a provider of medical device and pharmaceutical sterilization services with potential for significant upside
• Operates in a duopoly market with high barriers to entry and strong customer retention
• Stock is currently undervalued, providing investors with a timely opportunity to capitalize on the company’s potential

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.

• Adaptimmune Therapeutics plc (NASDAQ: ADAP) is a biopharmaceutical company focused on designing, developing, and delivering innovative cell therapies.
• The company’s unique T-cell receptor (TCR) platform engineers T-cells to target and destroy cancers across multiple solid tumor types.
• The company was founded in 2008 and is headquartered in Abingdon, United Kingdom, and Philadelphia, PA.