In today’s briefing:
- Raffles Medical (RFMD SP): Loo Sees A Bargain
- Emcure Pharmaceuticals Pre-IPO – Refiling Updates and Valuations
- Eisai Co Ltd (4523 JP): New Competition Is Coming for Alzheimer’s Disease Drug; No Immediate Threat
- Pre-IPO UGenix Biotech – Future Growth Potential Is Highly Uncertain
- Roivant Sciences Ltd.: Focus on Immunological Innovations Through Immunovant & Other Pipeline Expansion! – Major Drivers
- Stevanato Group S.p.A.: Leveraging Market Trends in Biologics and Self-Administration! – Major Drivers
- Apellis Pharmaceuticals Inc.: Strategic Marketing and Direct-to-Consumer (DTC) Campaigns Changing The Game! – Major Drivers
- Vanda Pharmaceuticals: Can It Attract Acquisition Interest After Future Pak’s Offer Withdrawal? – Major Drivers
- Medpace Holdings Inc.: Will The Improved Bookings Environment Last? – Major Drivers
- Natera Inc.: Why We Are Neutral Despite These 5 Massive Growth Drivers! – Financial Forecasts
Raffles Medical (RFMD SP): Loo Sees A Bargain
- Shares of integrated private healthcare provider Raffles Medical Group (RFMD SP) are currently languishing around a three low. RMG does look attractive compared to regional healthcare plays.
- FY23 numbers did no favours – top/bottom line y-o-y contraction of 14.1% and 37.1% respectively. Yet its emerging China ops show promise.
- Of interest is Loo Choon Yong, RMG’s founder and major shareholder, who continues adding to his stake, and now holds 54.944%, up from 53.033% at the beginning of the year.
Emcure Pharmaceuticals Pre-IPO – Refiling Updates and Valuations
- Emcure Pharmaceuticals is looking to raise around US$240m in its upcoming India IPO.
- Emcure Pharmaceuticals (EP) is an Indian Pharmaceutical company engaged in the developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.
- We have looked at the company’s past performance, in our earlier note. In this note, we talk about the RHP updates and take a quick look at valuations.
Eisai Co Ltd (4523 JP): New Competition Is Coming for Alzheimer’s Disease Drug; No Immediate Threat
- On July 2, Eli Lilly & Co (LLY US) has received FDA approval for its Alzheimer’s disease drug Kisunla, which will compete head-on-head with Eisai Co Ltd (4523 JP)‘s Leqembi.
- Efficacy and indications of both the drugs are similar. Price comparison is tricky. However, Kisunla can be stopped when amyloid plaques are removed, which is not the case for Leqembi.
- Eisai is not expected to face immediate competition and should comfortably meet Leqembi FY25 revenue target of ¥56.5B, including ¥43.5B from the U.S. Recently, Leqembi has been launched in China.
Pre-IPO UGenix Biotech – Future Growth Potential Is Highly Uncertain
- Although UGenix is a genetic technology company focusing on prenatal testing/precision oncology, it was the large-scale COVID-19 testing demand that made UGenix’s overall revenue grow rapidly, which, however, is unsustainable.
- NIPT market size is far less than expected. The clinical need for NGS has not developed as rigid demand. Restrictions on companion diagnosis pricing indicate market space would be compressed.
- The business of both prenatal testing and precision oncology are not easy. Due to uncertain commercialization outlook/profitability and other negative factors, UGenix’s stock price after IPO could underperform.
Roivant Sciences Ltd.: Focus on Immunological Innovations Through Immunovant & Other Pipeline Expansion! – Major Drivers
- Roivant’s latest financial and business developments indicate both potential and challenges.
- The company reported a series of product updates and financial adjustments aimed at fostering growth and efficiency.
- Notably, Roivant’s executive team highlighted fiscal responsibility through renegotiations of Dermavant’s obligations, which are projected to reduce costs significantly.
Stevanato Group S.p.A.: Leveraging Market Trends in Biologics and Self-Administration! – Major Drivers
- Stevanato Group’s first quarter 202rb performance underlined some critical challenges while also highlighting its robust positioning within the pharmaceutical supply sector.
- In a period marred by the ripples of the pandemic induced stockpiling, Stevanato Group’s revenue saw a slight decrement of 1% year-over-year, totaling EUR 236 million.
- This decline predominantly stemmed from the accelerated industry-wide destocking processes, particularly impacting their EZ-fill vials segment.
Apellis Pharmaceuticals Inc.: Strategic Marketing and Direct-to-Consumer (DTC) Campaigns Changing The Game! – Major Drivers
- Apellis Pharmaceuticals experienced a strong start to the first quarter of 2024, showing significant growth particularly through its product SYFOVRE, which demonstrated impressive market uptake and robust sales growth.
- SYFOVRE generated $137 million in net sales for the quarter, marking a 20% increase from the previous quarter.
- This increase predominantly stemmed from accelerated demand as the product solidified its position in the market.
Vanda Pharmaceuticals: Can It Attract Acquisition Interest After Future Pak’s Offer Withdrawal? – Major Drivers
- Vanda Pharmaceuticals Inc., in its Q1 2024 results, showcased a mixed performance amidst its transition phase collaborating its existing products along with recent acquisitions.
- The financial results reveal a decline in total revenues by 24% year-over-year to $47.5 million, primarily due to the impact of generic competition on its product HETLIOZ.
- Despite this, there was a slight sequential increase in total revenues from the previous quarter, suggesting some stabilization in their financial outcomes.
Medpace Holdings Inc.: Will The Improved Bookings Environment Last? – Major Drivers
- Medpace’s financial results for the first quarter of 2023 highlight a mixed scenario, reflecting both the opportunities and challenges inherent in the clinical contract research organization (CRO) industry.
- The company reported that revenues reached $511 million for the quarter, marking a significant 17.7% increase on a year-over year basis.
- This positive trajectory can be attributed to healthy demand for Medpace’s clinical research services, as demonstrated by the growth in ending backlog which stood at approximately $2.9 billion—an increase of 18.2% compared to the previous year.
Natera Inc.: Why We Are Neutral Despite These 5 Massive Growth Drivers! – Financial Forecasts
- Natera, Inc., during its Q1 2024 discussion, presented results that indicate robust financial and operational achievements alongside a renewed forward outlook reflecting the company’s strong position in the genomic diagnostics market.
- The company noted a significant increase in its revenue and volume growth across its diversified operational segments, which include oncology, organ health, and women’s health.
- Notably, Natera, Inc. achieved a major corporate milestone by reaching cash flow breakeven in Q1, significantly ahead of schedule.
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