In today’s briefing:
- Gap in Response to Disclosures in English Compared to the Growing Presence of Overseas Investors
- Hanmi Pharm (128940 KS): Core Products Continue to Drive Sales; Pipeline Progress Raises Hope
- Pre-IPO Malo Medical Management – Profit Model Is Not Mature; Future Expansion Is Worrying
- Hologic Inc.: Decoding the Reasons Behind the Double-Digit Molecular Growth! – Major Drivers
- Basilea Pharmaceutica – FDA accepts New Drug Application for ceftobiprole
- OSE Immunotherapeutics – Maintaining momentum after an active H123
- Regeneron Pharmaceuticals Inc: Can The Acquisition Of Decibel Therapeutics Be A Game Changer? – Major Drivers
- Cue Health Up For Sale: Tarsadia Pushes for Desperate Sale Amid Stock Plummet!
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Gap in Response to Disclosures in English Compared to the Growing Presence of Overseas Investors
- Overseas investors feel that the disclosure of English documents by Japanese companies is slow-paced and the majority of overseas investors are not satisfied with the English disclosure.
- Without sufficient disclosures in English, it is impossible to conduct a detailed analysis of the portfolio company. This also casts a shadow over engagement.
- Given the narrowing coverage of sell-side analysts, companies should proactively disclose English-language materials at the earliest possible time. For long-term investors, English-language disclosures such as annual securities reports are also useful.
Hanmi Pharm (128940 KS): Core Products Continue to Drive Sales; Pipeline Progress Raises Hope
- With 1H23 revenue of KRW704 billion, Hanmi Pharm (128940 KS) is on track on surpass its 2022 revenue of KRW1.33 trillion to reach a new high in 2023.
- Hanmi is developing epeglenatide as personalized obesity drug for South Korean market. With the spectacular success of obesity drugs in the U.S., epeglenatide seems to be have great market potential.
- Outlicensing partner Merck is conducting phase 2b trial on efinopegdutide for NASH, with result expected in 2025. Efinopegdutide obtained fast track designation from FDA, which should accelerate its commercialization.
Pre-IPO Malo Medical Management – Profit Model Is Not Mature; Future Expansion Is Worrying
- Malo’s revenue had good growth, but revenue scale is still small. At the current gross margin level, it would be difficult to generate decent profits considering the large SG&A expenses.
- Dental care expansion is difficult. Malo would face the challenging such as lack of high-quality dentists and centralized procurement. Both would drag down profits and cash flow.
- We are not optimistic about Malo’s share price performance after IPO. This industry’s profit mode is not mature. Most of chain dental services providers are still in cash-burning expansion stage.
Hologic Inc.: Decoding the Reasons Behind the Double-Digit Molecular Growth! – Major Drivers
- Hologic, Inc. exceeded analyst expectations in terms of revenue as well as earnings.
- Non-GAAP earnings per share were $0.93 and the total revenue was $984 million.
- In Mammography, Hologic delivered more gantries in Q3 than in Q1 and significantly fewer than in Q2.
Basilea Pharmaceutica – FDA accepts New Drug Application for ceftobiprole
Basilea has announced that the US FDA has accepted its New Drug Application (NDA) for ceftobiprole. The FDA has set a Prescription Drug User Fee Act (PDUFA) goal date of 3 April 2024, meaning that Basilea will have a regulatory decision for its lead antibiotic asset in the US in early-Q224, consistent with prior guidance. Supported by three separate Phase III clinical trials, the company is seeking approval for three indications: Staphylococcus aureus bacteraemia (SAB), acute bacterial skin and skin structure infections (ABSSSI) and community-acquired bacterial pneumonia (CABP). With the bacterial infection market in the US representing a sizeable opportunity, we believe the decision from the FDA could represent a significant catalyst for Basilea.
OSE Immunotherapeutics – Maintaining momentum after an active H123
OSE Immunotherapeutics (OSE) has announced its H123 results, providing an operational and a financial update. Highlights from the period included positive recommendations for a confirmatory pivotal Phase III trial for lead asset Tedopi in non-small cell lung cancer (NSCLC), which is on track to commence in 2024. OSE also claimed full rights to its most advanced immuno-inflammation asset, Lusvertikimab (previously being developed in partnership with Servier). Post period, the company reported a positive safety review for Lusvertikimab from the ongoing Phase II trial in ulcerative colitis (UC). Patient enrolment is expected to be completed in Q423, with top-line results in the next few months. OSE also recently announced a €200,000 grant from the French government and Region Pays de la Loire to weave RNA therapeutics into its preclinical R&D engine, representing a new opportunity for the company. At end-June 2023, OSE had a pro-forma gross cash position of €33.6m, which we estimate will provide a runway through to Q424 (H123 cash burn of €11.7m). We value OSE at €311.3m or €14.4 per share, with Tedopi as the primary contributor to this valuation.
Regeneron Pharmaceuticals Inc: Can The Acquisition Of Decibel Therapeutics Be A Game Changer? – Major Drivers
- Regeneron delivered an all-around beat in the previous quarter, demonstrating progress toward their long-term objective of business growth and revenue diversification.
- Total revenues saw an 11% increase compared to the previous year’s quarter, primarily driven by collaboration revenues with Sanofi and net product sales of Libtayo, which exhibited impressive growth of 39% and 49%, respectively.
- Notably, non-EYLEA revenue contributions accounted for 41% of total revenues, marking a significant proportion, the highest in the last decade, excluding contributions from COVID-19 antibodies.
Cue Health Up For Sale: Tarsadia Pushes for Desperate Sale Amid Stock Plummet!
- This is a special one-time report on Cue Health, a company once lauded for its promise in the diagnostics sector.
- Amidst diminishing fortunes, the company is under the scrutiny of significant shareholder, Tarsadia Investments.
- This report aims to dissect the various valuation scenarios underpinning Cue Health, providing a lucid understanding of its investment potential amidst the unfolding drama.