In today’s briefing:
- ResApp (RAP AU): Low-End Pfizer Offer As Cough Trial Fails
- ResApp’s Confirmatory Study Fails, Resulting in Pfizer’s Lower A$0.146 Offer
- Ping An Healthcare and Technology (1833.HK) – Untenable Business Model Worsen the Logic and Outlook
ResApp (RAP AU): Low-End Pfizer Offer As Cough Trial Fails
- Disappointingly, the sensitivity and specificity of ResApp Health (RAP AU)‘s cough trial were significantly lower than its March pilot study.
- As such, the Scheme Consideration from Pfizer Inc (PFE US) will be A$0.146/share, which is still a 62.2% premium to the undisturbed price.
- Trading super wide to terms after short-term punters kicked out.
ResApp’s Confirmatory Study Fails, Resulting in Pfizer’s Lower A$0.146 Offer
- Disappointingly, Resapp Health (RAP AU)‘s confirmatory data readout condition was not satisfied, resulting in Pfizer Inc (PFE US)’s lower unconfirmed data offer price of A$0.146 per share.
- The revised SID provides no obvious way for Pfizer to pull its offer. The still material premium to undisturbed price and open shareholder register suggests that the scheme will pass.
- The scheme meeting will be held in early to mid-August. At the last close of A$0.125, the gross spread to the unconfirmed data offer price of A$0.146 is 16.8%.
Ping An Healthcare and Technology (1833.HK) – Untenable Business Model Worsen the Logic and Outlook
- Just as we analyzed before, things get worse for PAGD. The loss expanded and gross margin declined. The gap between PAGD and its peers (JD Health, Alibaba Health) is widening.
- PAGD’s Achilles’ heel is its business model/profit model is untenable. The new HMO services system would not help turn things around because China’s national condition is different from the US.
- Being on the wrong track, PAGD’s financial performance is expected to further weaken. We are conservative about PAGD’s outlook. Any brief upwards movement is just dead cat bounce.
Before it’s here, it’s on Smartkarma
