In today’s briefing:
- 2023 High Conviction Update: Revolution Medicines, RVMD/EQRx Deal Adds $1B+ Of Capital
- Eisai Co (4523 JP): Better-Than-Expected Q1FY24 Result; Reaffirmed FY24 Guidance
- China Healthcare Weekly (Aug.4) – TCM Rally Ends, P/E Ratio Becomes Ineffective, IRay Technology
- Mettler-Toledo International Inc.: 5 Facts About Strong Service Growth You Need to Know! – Financial Forecasts
2023 High Conviction Update: Revolution Medicines, RVMD/EQRx Deal Adds $1B+ Of Capital
- Sanofi, a French multinational healthcare company, terminated the SHP2 inhibitor RMC-4630 development and commercialization agreement in 2022. The company did not disclose any specific reasons.
- However, Revolution Medicines regained all global rights granted to Sanofi, and management reiterated that RMC-4630 is a potentially important RAS oral inhibitor in the company’s pipeline.
- A US-based oncology company completed a public equity offering in March and raised ~$324M of net proceeds. Moreover, Revolution Medicines acquired EQRx and secured access to $1B+ of capital.
Eisai Co (4523 JP): Better-Than-Expected Q1FY24 Result; Reaffirmed FY24 Guidance
- Eisai Co Ltd (4523 JP) reported 7% YoY revenue growth in Q1FY24, due to the growth of anticancer agent Lenvima mainly in the U.S. and insomnia treatment Dayvigo in Japan.
- The company has reiterated FY24 guidance, which calls for 4% YoY revenue decline, 25% YoY growth in operating profit, and 31% YoY decline in net profit.
- On July 6, 2023, Eisai received full FDA approval for Leqembi (lecanemab) injection for the treatment of Alzheimer’s disease. Leqembi is progressing steadily toward treating 10K U.S. patients in FY24.
China Healthcare Weekly (Aug.4) – TCM Rally Ends, P/E Ratio Becomes Ineffective, IRay Technology
- The rally of TCM companies has probably come to an end. But we think there would be good trading opportunities in 23Q4. Things could become challenging again in 24Q1.
- If P/E is used when calculating the valuation of innovative pharmaceutical companies, unreasonable situations may arise. Sales profit rather than net profit could be a better choice for P/E.
- Although iRay’s current P/E has fallen in reasonable range, due to concerns about its long-term growth prospects, valuation could further decline in long term. So, just short-term trade is recommended.
Mettler-Toledo International Inc.: 5 Facts About Strong Service Growth You Need to Know! – Financial Forecasts
- Mettler-Toledo International delivered a mixed result in the recent quarter, with revenues below market expectations but managed to surpass the analyst consensus regarding earnings.
- The sales growth included strong growth in the company’s service business as well as solid performance across its industrial product classes.
- In China, market demand deteriorated due to growing uncertainty around the pace of limited government stimulus and economic growth.
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