Daily Brief Health Care: Vcanbio Cell & Gene Engineering, Binex Co Ltd, Edwards Lifesciences, Waters Corp, Sareum Holdings, Bristol Myers Squibb Co and more

• The CSI Medical Index represents the top 50 largest and most-liquid stocks involved in medical devices, medical care, medical informatization, and other medical themes in China.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in June 2025.
• We expect up to three ADDs and three DELs in June 2025 based on the latest available data (where 90% of the reference period is complete).

• HLB Life Science (067630 KS) was added to the Investment Attention Issue list on 21 March and traded limit down. Then came the announcement of the KOSDAQ 150 Index deletion.
• As the highest ranked non-constituent from the Healthcare sector at the December rebalance, Binex (053030 KS) will be added to the KOSDAQ 150 Index at the close on 25 March.
• Historically, intra-review inclusions have moved higher between announcement and implementation and there has been reversion post the index inclusion.

• Edwards Lifesciences Corporation recently reported its financial results for the fourth quarter and the full year of 2024, providing an insight into its strategic performance and outlook.
• The company, solely focused on structural heart solutions after divesting its Critical Care segment in the third quarter of 2024, recorded robust financial performance, consistent with its expectations and strategic focus.
• For the full year 2024, Edwards Lifesciences reported a 9% increase in sales, reaching $5.4 billion.

• Waters Corporation reported strong fourth quarter and full-year financial results for 2024, reflecting a positive growth trajectory within the life sciences sector.
• The company achieved a 6.4% reported sales growth in the fourth quarter, 8% on a constant currency basis, and attained high single-digit growth in instruments and recurring revenues.
• Earnings per share (EPS) showcased robust growth with a 13% increase to $4.10 on a non GAAP basis, showcasing the firm’s resilience amidst challenging economic conditions.

Sareum Holdings has announced the acquisition of the licence for SRA737, a checkpoint kinase 1 (CHK1) inhibitor, in which the company had previously held a 27.5% economic interest. Following this acquisition, Sareum will be eligible for 63.5% of all future returns from the programme. SRA737 is a clinical-stage asset, having completed two Phase I/II trials with encouraging headline data, and we believe that this deal will provide Sareum with greater control over its development pathway and future plans. The company has also announced an equity raise for gross proceeds of £1.07m, against an issue of 8.56m shares, to an institutional investor. We expect this to provide greater flexibility to Sareum as it advances its pipeline, in particular lead asset SDC-1801, which is approaching Phase II studies, in autoimmune disorders.

• Bristol-Myers Squibb’s (BMS) fourth quarter 2024 earnings call reveals a mixed outlook for the company.
• Positively, there were strong performances in certain areas of the company, reflecting a solid execution of its growth strategy.
• The growth portfolio delivered a double-digit increase, driven by key brands like Breyanzi, Camzyos, Reblozyl, and Opdualag.

• The licence for SRA737 became available following the programme’s return from a US-based biopharma company.
• As from December 2024, the licence reverted to the CRT Pioneer Fund (CPF).
• Sareum has now acquired this licence, and the economic terms have been renegotiated, so Sareum will receive a net 63.5% of all future revenues, up from 27.5%.