In today’s briefing:
- Volpara Health/Lunit: Bosom Buddies
- Volpara Health (VHT AU): Lunit’s Binding A$1.15 Offer
- [Zai LAB (ZLAB US, SELL, TP US$20) TP Change]: Two Positive News Drove up 2024 Growth Target
- Astellas Pharma (4503 JP): Some Recent Positive Developments That Will Yield Benefit in Long-Run
- Closing RAIN
Volpara Health/Lunit: Bosom Buddies
- Volpara Health (VHT AU), which makes software enabling the early detection of breast cancer, has announced it has entered into a Scheme Implementation Deed with South Korea’s Lunit (328130 KS).
- Lunit is offering Volpara shareholders A$1.15/share, in cash, a 47.4% premium to last close. Cornerstone investors with 25.92% of shares out are supportive. As is Volpara’s board.
- The Scheme Meeting is expected to be held in 2Q24. The transaction requires NZ’s OIO approval.
Volpara Health (VHT AU): Lunit’s Binding A$1.15 Offer
- Volpara Health Technologies (VHT AU) has entered a scheme implementation deed with Lunit (328130 KS) at A$1.15 per share, a 48.4% premium to the undisturbed price of A$0.775 (13 December).
- The offer is subject to several conditions, such as shareholder and OIO approval. Irrevocables and directors represent 33.30% of outstanding shares.
- Barring a competing offer, this is a done deal, as the offer is attractive. At the last close and for the end of May payment, the gross/annualised spread is 5.0%/11.6%.
[Zai LAB (ZLAB US, SELL, TP US$20) TP Change]: Two Positive News Drove up 2024 Growth Target
- Local news reported two positive developments for Zai Lab’s FcRn inhibitor Efgartigimod: (1) Rival CSPC/HarbourBio withdrew BLA for competing drug Batoclimab (HBM9161), (2) Efgartigimod was included in 2024 NDRL;
- We raise Zai Lab’s 2024 top line by 8.8% but keep non-GAAP operating loss largely unchanged；
- We raise TP by US$2 to US$20 and maintain SELL.
Astellas Pharma (4503 JP): Some Recent Positive Developments That Will Yield Benefit in Long-Run
- Astellas Pharma (4503 JP) has been reporting a couple of positive developments over the last one month. These are right steps toward achieving sustainable and accelerated growth in long-term.
- Astellas received European Commission approval for Veoza for the treatment of moderate to severe vasomotor symptoms associated with menopause. This potential blockbuster drug has already been launched in the U.S.
- Astellas is acquiring Propella Therapeutics for $175 million. Propella’s clinical-stage lead candidate can be a challenger to the current standard-of-care in prostate cancer treatment.
Closing RAIN
- Rain Oncology (RAIN) is being bought out for $1.16 + CVR worth up to $0.17/share.
- This seems like a worse deal than the $1.25 + CVR Tang was offering, but ok, I will take it.
- Usually these CVR’s should be valued at a large discount to their upper value, so I see no reason to hang around in this one so closing this one for a 15% gain at $1.
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