In today’s briefing:
- Sihuan Pharmaceutical (460 HK): Buybacks, Now A Spin-Off
- Brookfield Refinances Grifols’ Debt
- Canbas Co Ltd (4575 JP): Q1 FY06/25 flash update
- CTSO: CytoSorbents reports 3rd quarter financial results. The company also submitted its Medical Device License (MDL) marketing application to Health Canada.
- GENOVA (9341 JP): 1H FY03/25 flash update
- INAB: Upcoming Presentations at SNO & ASH
- Kringle Pharma Inc (4884 JP): Full-year FY09/24 flash update
- Medinet Co Ltd (2370 JP): Full-year FY09/24 flash update
- Medpeer Inc (6095 JP): Full-year FY09/24 flash update
- Neuren Pharmaceuticals (NEU AU): Substantial Buyback Plan Announced; Daybue Sales Accelerate in US
Sihuan Pharmaceutical (460 HK): Buybacks, Now A Spin-Off
- On the 6th October, Sihuan Pharmaceutical Hldgs (460 HK) announced a HK$500mn, 12-month buyback programme. Shares jumped 31% on the news, but have since given all that gain back.
- Sihuan Pharma has now announced an intention to spin-off non-wholly-owned subsidiary Xuanzhu Biopharm on the HKEx.
- Concurrent with the spin-off news. Sihuan Pharma acquired 6.9% in Xuanzhu Biopharm for RMB596mn, implying a full value of ~RMB8.5bn (~HK$9.2bn). This compares to Sihuan Pharma’s market cap of HK$6.6bn.
Brookfield Refinances Grifols’ Debt
- Brookfield has secured an €11 billion loan to refinance Grifols’ €9.2 billion net debt, paving the way for a potential takeover and significant control over Grifols’ operations.
- Grifols’ Q3 results reveal 12% revenue growth, strong free cash flow, and lower net debt, with 2024 targets reaffirmed for 7%+ revenue growth, €1.8 billion EBITDA, and 4.5x leverage.
- The narrowing discount between Grifols’ A and B shares signals market optimism, reflecting confidence in a takeover. This would be my preferred strategy of playing this situation.
Canbas Co Ltd (4575 JP): Q1 FY06/25 flash update
- CanBas reported no operating revenue in Q1 FY06/24, with an operating loss of JPY251mn and increased R&D expenses.
- Total assets rose by JPY1.3bn due to fundraising, while liabilities saw a JPY9mn decrease in accounts payable.
- The company anticipates JPY5.5bn costs for potential Phase 3 trials in Europe, with development period and costs under review.
CTSO: CytoSorbents reports 3rd quarter financial results. The company also submitted its Medical Device License (MDL) marketing application to Health Canada.
- CytoSorbents is commercializing its E.U. approved CytoSorb blood purification technology to treat life-threatening conditions in the intensive care unit and cardiac surgery.
- For the first nine months of 2024, product sales increased 11.4%.
- The company also seeks U.S. and Canadian approval of a second product, DrugSorb-ATR, to reduce perioperative bleeding risk in patients on blood thinners during cardiac surgery.
GENOVA (9341 JP): 1H FY03/25 flash update
- Consolidated revenue increased by 29.2% YoY to JPY5.1bn, with operating profit growing 25.6% YoY to JPY1.2bn.
- Medical Platform business revenue rose 17.3% YoY to JPY3.2bn, with average monthly page views up 47.1% YoY.
- Smart Clinic business revenue surged 70.7% YoY to JPY1.7bn, driven by new software service NOMOCa AI chat.
INAB: Upcoming Presentations at SNO & ASH
- IN8Bio is a clinical-stage, oncology-focused biotechnology company using ?d T cells against solid and hematological tumors.
- Its pipeline is built on the DeltEx platform & drug-resistant immunotherapy (DRI) technology which have produced clinical candidates targeting leukemia & GBM.
- INB-100 is evaluating leukemia in a Ph1 study, while INB-200 & INB-400 are Ph1 and Ph2 assets evaluating GBM.
Kringle Pharma Inc (4884 JP): Full-year FY09/24 flash update
- FY09/24 results: Revenue JPY80mn (+15.6% YoY), operating loss JPY818mn, net loss JPY756mn, SG&A expenses JPY898mn.
- FY09/25 forecast: Revenue JPY272mn (+239.8% YoY), SG&A expenses JPY1.6bn, operating loss JPY1.4bn, net loss JPY1.4bn.
- Current assets JPY2.8bn, liabilities JPY649mn, net assets JPY2.1bn; capital increases from stock acquisition rights.
Medinet Co Ltd (2370 JP): Full-year FY09/24 flash update
- Sales increased by 16.2% YoY to JPY769mn, driven by growth in Specified Cell Products and CDMO Businesses.
- The company forecasts FY09/25 sales of JPY930mn (+21.0% YoY), with an operating loss of JPY1.5bn.
- The cell processing business forecasts sales of JPY930mn (+21.1% YoY) and an operating loss of JPY439mn.
Medpeer Inc (6095 JP): Full-year FY09/24 flash update
- FY09/24 sales were JPY14.9bn (+2.8% YoY), with operating profit at JPY1.3bn (+15.3% YoY), exceeding forecasts.
- The Preventative Healthcare Platform exited, transferring operations to subsidiaries of Advantage Risk Management, effective September 30, 2024.
- FY09/25 forecast predicts sales of JPY12.4bn (-17.0% YoY) and net income of JPY500mn (-66.3% YoY).
Neuren Pharmaceuticals (NEU AU): Substantial Buyback Plan Announced; Daybue Sales Accelerate in US
- Neuren Pharmaceuticals (NEU AU) announced a share buy-back program worth up to A$50M (~3M shares, representing 2.4% of total shares on issue). The 12-month buyback will commence on December 2.
- As of September 30, 2024, Neuren has a cash balance of A$210M and the company’s R&D expenses for 1H24 were A$18M. Interest income more than covers Neuren’s corporate expenses.
- The buyback announcement follows Neuren’s recent entitlement of one-off income from the sale of partner’s Priority Review Voucher and Daybue’s record high sales in 3Q24.
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