Daily Brief Health Care: Shanghai Henlius Biotech , Pacific Smiles, Alteogen Inc, Recce Ltd, Monogram Orthopaedics , Teladoc Health, Inc., Tg Therapeutics and more

• Shanghai Henlius Biotech (2696 HK) announced that the share alternative pre-condition was satisfied. However, the share alternative offer remains at Shanghai Fosun Pharmaceutical (Group) (2196 HK)’s discretion. 
• Loyal Valley Capital (LVC), a pre-IPO investor, emerged as a substantial shareholder on 10 July, the deadline for submitting letters of interest for the share alternative offer.
• The likely scenario is that the offer succeeds as the co-founders enter rollover arrangements, and a share alternative is introduced, which is taken by QIA and LVC. 

• After what appeared indecisiveness from Genesis Capital, Crescent Capital’s National Dental Care snuck in on the 29th April and entered into a Scheme with Pacific Smiles (PSQ AU) at A$1.90/share. 
• The Scheme Meeting is the 1st August with expected implementation on the 19th August. The IE (Deloitte) reckoned terms are fair & reasonable. All good right? Not quite.
• The Takeovers Panel has concluded Genesis Capital, with 19.9% of shares out, is free to vote. Assuming Genesis votes against the Scheme, Crescent Capital’s Offer is effectively dead.

• Shanghai Fosun Pharmaceutical (Group) (2196 HK)‘s (SFP) “Merger by Absorption” HK$24.60/share cash Offer for H-shares not held in Shanghai Henlius Biotech (2696 HK), tentatively includes a scrip alternative.
• The first hurdle for the share option – valid letters of interest from those shareholders wishing to rollover – was secured yesterday. SCP still has the discretion on providing scrip.
• But if SFP had any lingering doubts whether to offer scrip, that was answered earlier this week with the emergence of a substantial shareholder who is typically a pre-IPO investor.

• Alteogen Inc (196170 KS) received approval for first product, Tergase, a recombinant human hyaluronidase liquid product, in Korea. Tergase increases penetration during intramuscular or subcutaneous injection and local anesthesia.
• With excellent safety profile compared to existing animal-derived hyaluronidase products, Tergase stands to emerge as a promising alternative in the global hyaluronidase market estimated to be $1B in near future.
• Alteogen’s subsidiary, Altos Biologics submitted marketing authorization approval to the European Medicines Agency for Eylea biosimilar. Approval is expected by next year.

We highlight the opportunity of topical RECCE® 327 (R327) to address diabetic foot infections (DFIs), which is the leading cause of limb morbidity in diabetic patients and an area of unmet need as currently available topical drugs have limited effectiveness. Recce is planning to initiate a Phase III registration-enabling study in H2 CY24 in Indonesia. We anticipate that positive results from the trial could lead to Recce’s earliest R327 commercialisation opportunity, through a launch in South-East Asia in the DFI indication in H2 CY26. The company announced an A$10m equity financing that is expected to extend its runway into FY26. We now obtain an rNPV valuation of A$688.5m (or A$3.07 per share), versus A$661.3m (or A$3.27 per share) previously. The reduced value per share is due to the anticipated increase in share count post-financing.

• Monogram Orthopaedics Inc. is an overvalued, pre-revenue stock trading at 10x cash with financial concerns, heavily shorted and planning to issue more shares, potentially leading to a stock price crash.
• The stock saw an 80% increase following a press release mentioning Nvidia, but the spike is expected to be short-lived.
• MGRM lacks significant institutional investors and its largest shareholders include a supplier, board members, and a hospital that licensed technology to the company. With $13.6 million in cash, the company may need to raise equity soon.

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.

• Teladoc Health recently reported its first quarter results for 2024, which provide insights into the company’s financial health and strategic directions during its transition period.
• The company is actively seeking a new CEO while focusing on strengthening its market leadership in total care solutions and improving both top and bottom line performance.
• During the first quarter, Teladoc Health surpassed both revenue and adjusted EBITDA expectations set by the company.

• TG Therapeutics focuses on developing treatments for B-cell mediated diseases, including their flagship product Briumvi for Multiple Sclerosis
• The company has a pipeline of other products such as Umbralisib, TG-1701, and TG-1801 in development
• Briumvi is an anti-CD20 monoclonal antibody targeted at specific types of MS, showcasing the company’s commitment to addressing unmet medical needs in the field

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.