Daily Brief Health Care: Rigaku Holdings, Shenzhen Mindray Bio-Medical Electronics, Sichuan Biokin Pharmaceutical Co Ltd, Perrigo, Soligenix , Evaxion Biotech A/S, Nurexone Biologic, BrainStorm Cell Therapeutics I and more

• Rigaku Holdings (268A JP) is Japan’s leading manufacturer of X-ray analysis, measurement and testing instruments. It is seeking to raise up to US$760 million.
• In Rigaku Holdings (268A JP) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
• The bear case rests on weakening forward growth indicators, China revenue risk, rising cash conversion cycles, mid-tier FCF margin and large post-IPO share overhang. 

• Rigaku Holdings (268A JP) is looking to raise US$762m in its Japan IPO.
• Rigaku engages in developing, manufacturing, sales and servicing scientific instruments specializing in X-ray technologies.
• In our earlier notes, we looked at the firm’s past performance. In this note, we undertake a peer comparison.

• Shenzhen Mindray Bio-Medical Electronics (300760 CH) reported double-digit growth in revenue and net profit in 1H24.
• In-Vitro diagnostics and medical imaging systems segments drive performance, while patient monitoring and life support lagged.
• International market continues to show strength, while China lingers for now.

• Biokin’s traditional chemical drug and TCM businesses would continue to shrink and their valuation contribution can be negligible. The collaboration agreement for BL-B01D1 with BMS changes the outlook of Biokin.
• The clinical data of BL-B01D1 look good so far, but the R&D failure risk of BL-B01D1 is not low. It is uncertain if BL-B01D1 would finally be druggable.
• Biokin is overvalued and there is big bubble in valuation. If BL-B01D1 fails in R&D or its clinical data fail to meet high expectation, Biokin’s market value will plummet.

• PRGO has resolved 90% of its challenges and is on track to address the remaining issues soon
• Predicted rise in earning power by 2025 could boost estimates and valuation, with potential for $3.5 EPS and $45 price target
• New CEO has shown progress in addressing issues, setting new expectations, and implementing cost-cutting measures, making PRGO an attractive investment opportunity with limited downside risk

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.

• On October 2, 2024, two travelers in Hamburg, Germany were hospitalized due to displaying symptoms consistent with Marburg virus.
• The two travelers had recently arrived from Rwanda, a country that is currently experiencing an outbreak of the disease, and one of them had reportedly come into contact with someone later confirmed to be infected with Marburg virus.
• Rwanda has had a total of 26 confirmed cases of Marburg virus, with eight deaths.

• EVAX is a clinical stage company that has proprietary AI models designed to more efficiently and more accurately target much-needed treatments.
• The company has two streams of possible revenue: from the treatments themselves and from the licensing of the AI technology.
• The company announced that its Phase 2 trial of its personalized cancer vaccine improved its response rate significantly from Phase I-both improving the chances for FDA approval and validating the AI approach to medicine.

• NurExone (OTC-NRXBF) is a clinical stage biotech company that is developing a breakthrough treatment for spinal cord injuries that has the potential to dramatically improve lives.
• The technology involved also has the potential to more efficiently get other treatments to the needed area.
• The company has conducted preclinical testing that has shown dramatic results and has been awarded an important FDA designation.

• BrainStorm Cell Therapeutics Inc. (Nasdaq: BCLI) develops NurOwn® stem cell therapy for NDDs – BCLI’s first target is ALS (MND/Lou Gehrig’s).
• We have stress tested our valuation vs. current global and market events as well as and BCLI’s reverse stock split (R/S) 30 Sept 2024 (to maintain Nasdaq listing).
• Whilst there are pros and cons – our risk adjusted WACC has increased and NPV reduced, our conservative base case expected dilution assumptions have improved with R/S and Nasdaq compliance and our base case return has risen to 8.5x, up 0.5x.