Health Care: Nissui Pharmaceutical, PureTech Health, Scivita Medical Technology, Intco Medical Technology Co., Ltd-A, FirstService Corp, Sun Pharmaceutical Industries and more

• Nissui Pharmaceutical (4550 JP) has been cheap for years. Years and years and years. 
• It has traded at negative Enterprise Value for almost all of the past year. 
• Now Shimadzu Corp (7701 JP) is taking it over and heavily indebted parent Nippon Suisan Kaisha (1332 JP) is letting it go.

• PureTech Health (PRTC LN) has highly differentiated wholly owned pipeline of seven therapeutic candidates and four lymphatic and inflammation platforms. It also has strategic investments in six founded entities.
• KarXT, lead candidate of founded entity Karuna Therapeutics Inc (KRTX US), is progressing toward commercialization, thereby entailing milestone and royalty opportunities for PureTech. 
• PureTech’s lead candidate LYT-100 is in three late-stage clinical trials for three indications addressing large patient population. LYT-100 also has potential to address to other underserved diseases.

• Scivita is a China-based medical device company with a focus on single-use endoscope. The company is looking to raise up to USD100 m via a Hong Kong listing.
• In this note, we look at the company’s background, the industry dynamics and the company’s products.
• We think the company has a decent investor backing and management team but the intense competition is the main issue.

• Due to the reduction of glove selling price, lower demand, significant cost hike and inflation, it is expected that Intco would continue to face declining performance and margins. 
• Under current circumstances, supply exceeds demand. The overcapacity could lead to substantial asset impairment. So, it would take some time before the industry clearing is finished or reach new balance.
• Intco’s weak performance would continue. Its share price is likely to remain depressed for some time.So, it may not be wise to bottom fishing that early even with low valuation.

• Distillate Capital Partners LLC was formed in 2017 and is based in Chicago, IL. The firm is 100% employee-owned, and DCP’s partners each have invested significantly in the firm’s investment strategies.
• Distillate’s U.S. FSV returned -3.60% net of fees versus -4.60% for the benchmark.
• Distillate’s Intl. FSV strategy returned -6.19% net of fees.
• Distillate’s U.S. SQV’s 2022 Q1 total return after fees was -4.49%.

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