In today’s briefing:
- (Mostly) Asia M&A, May 2023: Allkem / Livent, InvoCare, Golden Eagle, Yita Coal, Shinsei Bank
- D. Western Therapeutics Institute (DWTI) (4576 JP) – 1Q Follow-Up
- The Starting Point Is to Set “Sustainable Expansion of Corporate Value” As a Management Goal
(Mostly) Asia M&A, May 2023: Allkem / Livent, InvoCare, Golden Eagle, Yita Coal, Shinsei Bank
- For the month of May, 8 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$15bn.
- The average premium for the new deals announced (or first discussed) in May was 32%.
- This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.
D. Western Therapeutics Institute (DWTI) (4576 JP) – 1Q Follow-Up
- According to “Ophthalmology Drugs Global Market Report 2021: COVID 19 Impact and Recovery to 2030” issued by the Business Research Company in Feb-2021, the global ophthalmology drugs market is expected to grow from $22.03 billion in 2020 to $32.64 billion in 2025 (+8.2% CAGR).
- M&A in this segment has become active in recent years, with global eye care leader Alcon (SIX/NYSE:ALC) acquiring DWTI’s closest rival in the US, Aerie Pharmaceuticals, Inc. in Nov-2022, adding Rhopressa® (similar to DWTI’s GLANATEC®) among others, and Aerie’s development pipeline.
- Over time with progress in execution of the development pipeline, and as part of growth strategy to diversify revenue streams, DWTI’s basic business model of drug discovery and early out-licensing has evolved to include 1) from 2015, in-licensing of later stage development products, 2) from 2018, collaborative drug creation applying DWTI’s technical expertise to assist in joint R&D of products of other firms, and 3) from 2018, extending development of original in-house products beyond early out-licensing as far as proof of concept (PoC) through Phase IIb.
The Starting Point Is to Set “Sustainable Expansion of Corporate Value” As a Management Goal
- The concern that companies are only striving to develop formal systems and not improving the substance of their corporate governance is shared by the Council of Experts.
- A solution to avoid formal system development would be to increase the independence of the board to a level that cannot be cleared by a little matching of numbers.
- For effective engagement, management must be aware of the goal of “sustainable growth and expansion of corporate value” in order to communicate in the same language.
Before it’s here, it’s on Smartkarma
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