In today’s briefing:
- China Healthcare Weekly (Apr.28) – Four Stages of China Biotech, The Real Foothold of R&D, Kelun
- Siloam International Hospitals (SILO IJ) – Ramped Up and Reaping the Rewards
- Astellas Pharma (4503 JP): FY23 Result and FY24 Guidance Meet Expectation; New Drugs Hold Key
- AstraZeneca PLC: Overcoming The Challenges Of Pricing Clawbacks – Key Drivers
- Exact Sciences Corporation: Collaboration With VieCure & Other Drivers
- McKesson Corporation: Growing Prescription Technology Solutions and Third-Party Logistics – Key Drivers
China Healthcare Weekly (Apr.28) – Four Stages of China Biotech, The Real Foothold of R&D, Kelun
- The real foothold of a pharmaceutical company lies in “Development” rather than “Research”. After the clinical development has reached the first-class level, what remains is the vision of the leaders.
- For China biotech, we think they would go through four stages- Stage 1 (2015 – 2019), Stage 2 (2019 – present), Stage 3 (2026-2028) and Stage 4 (starting from 2030).
- If without Merck’s deal, Kelun’s profit improvement was mainly due to effective cost control. If Kelun could maintain double-digit revenue growth, with net profit margin around 10%, it’s already good.
Siloam International Hospitals (SILO IJ) – Ramped Up and Reaping the Rewards
- Siloam International Hospitals (SILO IJ) booked a very strong set of 1Q2023 results, despite a seasonally slower period, with all of its ramping-up hospitals now generating positive EBITDA.
- The company saw marked improvement in its patient metric in 1Q2023, both for inpatients and outpatients plus an improving payee mix with more corporate and insurance payments.
- Siloam put through price increases in 1Q2023, which will positively impact the next few quarters. It will also focus more on diagnostics this year as a new area for growth.
Astellas Pharma (4503 JP): FY23 Result and FY24 Guidance Meet Expectation; New Drugs Hold Key
- Astellas Pharma (4503 JP) recorded 17% growth in revenue to ¥1,519B in FY23, driven by 24% growth of Xtandi. Core operating profit grew 17% and core net profit increased 18%.
- The company has guided for flat revenue and core operating profit for FY24, mainly due to negative impact of Fx.
- Astellas expects to obtain FDA approval for fezolinetant for vasomotor symptoms associated with menopause in May 2023. The company will file for marketing approval for zolbetuximab in Q1FY24.
AstraZeneca PLC: Overcoming The Challenges Of Pricing Clawbacks – Key Drivers
- AstraZeneca achieved mixed results in the last quarter with total revenues surpassing Wall Street expectations but it missed out on meeting the earnings expectations of analysts.
- The company had a total revenue of $44.4 billion in 2022, a 25% increase at CER, while core EPS was $6.66, a 33% increase from 2021 levels.
- Looking ahead to 2023, AstraZeneca remains confident that the strength of its underlying portfolio will allow it to outgrow revenue decreases from its COVID-19 medicines.
Exact Sciences Corporation: Collaboration With VieCure & Other Drivers
- Exact Sciences Corporation delivered strong results in the quarter, with fourth quarter revenue increased by 17%, or 28%, excluding COVID testing, to $553 million.
- The company delivered an all-around beat in the quarter as 10,000 new healthcare professionals ordered Cologuard, bringing the total to over 302,000.
- Besides that, Precision Oncology’s revenue fell 4% to $143 million, excluding the loss of the company’s prostate business and a $2 million forex headwind increase of 1%.
McKesson Corporation: Growing Prescription Technology Solutions and Third-Party Logistics – Key Drivers
- McKesson Corporation delivered a mixed set of results for the last quarter with revenues below expectations but it did manage an earnings beat.
- Revenues in the Prescription Technology Solutions sector were $1.1 billion, up 9% yearly, due to higher prescription volumes, quicker growth in the company’s third-party logistics business, and higher technology service revenues.
- In the last quarter, McKesson also made significant progress in developing its oncology and biopharma ecosystems.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
