Daily BriefsHealthcare

Daily Brief Health Care: Shockwave Medical Inc, Zhangzhou Pientzehuang Pharmaceutical Co., Ltd., Kaken Pharmaceutical, S&P 500, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

  • Shockwave Medical Inc (SWAV US): Recovery from COVID Drove Q2 Sales; 2022 Revenue Guidance Raised
  • Zhangzhou Pientzehuang Pharmaceutical (600436CH) 22H1- 2022 Is Stressful but Shares Will Bounce Back
  • Kaken Pharmaceutical (4521 JP): Falling Revenue of Top-Selling Drugs Limit Near-Term Growth Prospect
  • S&P 500, Nasdaq 100 Testing Key Resistance Levels; Pause Likely; Buying Biotech
  • Voting Rights that Fulfill Fiduciary Duty Are a Key for Tense Corporate Management Practices

Shockwave Medical Inc (SWAV US): Recovery from COVID Drove Q2 Sales; 2022 Revenue Guidance Raised

By Tina Banerjee

  • Shockwave Medical Inc (SWAV US) had a solid Q2 across the board, with total revenue surging 116% y/y, driven by a 139% y/y jump in coronary products (73% of revenue).
  • The company raised 2022 revenue guidance to $465–475 million (+96–100% y/y). Revenue guidance was raised for the second time this year.
  • Shockwave shares gained 28% since I published bullish insight on the company on June 7. I believe further stream is still left.

Zhangzhou Pientzehuang Pharmaceutical (600436CH) 22H1- 2022 Is Stressful but Shares Will Bounce Back

By Xinyao (Criss) Wang

  • Due to the lockdown/pandemic, Pientzehuang Pharmaceutical’s 2022H1 performance slowed down. Considering the economic downturn and people’s cutting back spending on non-rigid consumption, the full-year revenue growth could be around 10%-20%.
  • The Company’s key challenge lies in revenue growth. However, it is not easy to increase sales largely due to the scarcity of raw materials, which limits the expansion of production.
  • Pien Tze Huang is overvalued. Share price could continue to fall,but it will bounce back due to its high moat. 2022 is a good time for bottom fishing this stock.

Kaken Pharmaceutical (4521 JP): Falling Revenue of Top-Selling Drugs Limit Near-Term Growth Prospect

By Tina Banerjee

  • Kaken Pharmaceutical (4521 JP) is reporting declining revenue from its three largest selling products, due to NHI price revision. These products together contribute more than 60% of total revenue.
  • The company’s newly launched products are growing at a rapid pace. However, the fastest growing product Ecclock contribute just 2% of total revenue.
  • Kaken guided for just 1% y/y revenue growth and 12% y/y decline in operating profit in FY23. Due to pipeline expansion, R&D expenses are likely to remain elevated.

S&P 500, Nasdaq 100 Testing Key Resistance Levels; Pause Likely; Buying Biotech

By Joe Jasper

  • The weight of the evidence suggests that the lows for this bear market have likely already been established, but that does not mean it will be smooth sailing from here.
  • The SPX and NDX are both testing important resistance levels (4165-4180 and the YTD downtrend, respectively), making this a logical spot for the indexes to stall and potentially pull back.
  • Ultimately, we would expect to see support near their 50-day MAs as the market goes through a bottoming process. We remain neutral overall.

Voting Rights that Fulfill Fiduciary Duty Are a Key for Tense Corporate Management Practices

By Aki Matsumoto

  • As discussed in my previous article, when the % of foreign shareholders increases, companies tend not to bring up the continuation of takeover defense measures at shareholder meetings.
  • The threshold level, so to speak, of the % of foreign shareholders that determines whether or not to continue takeover defense measures is estimated to be in the 30% range.
  • If other domestic institutional investors follow, threshold level will be lowered and lead to a more tense corporate management, which will have a positive effect on the board of directors.

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