In today’s briefing:
- Takeda Strengthens Rare Disease Portfolio Through Tie-Ups with Gene Therapy Developers
- BGH Returns with an A$8.00 Off-Market Takeover Bid for Virtus
- Medlive Technology (2192.HK) – The Logic Has Shaken
- Buy Global LargeCap Pharma: LLY, AZN, NOVO.B-DK, ROG-CH, BMY, BAYN-DE, UCB-BE, IPN-FR, 4528-JP, TEVA
Takeda Strengthens Rare Disease Portfolio Through Tie-Ups with Gene Therapy Developers
- Takeda Pharmaceutical (4502 JP) has been aggressively expanding its rare disease portfolio following recent hiccups in its development pipeline through Tie-Ups with different gene therapy developers.
- Rare diseases biz is the second largest business segment for Takeda generating about 17.1% of total revenues for the company.
- Takeda’s share price started plunging after suspending a phase 2 study of TAK-994 in October 2021 and price started moving up since January and we think there is further upside.
BGH Returns with an A$8.00 Off-Market Takeover Bid for Virtus
- BGH announced an unconditional off-market takeover offer at A$8.00 cash per share along with intention for on-market purchases equal to, below, or higher than the offer price.
- CapVest’s scheme transaction while superior has virtually no chance of getting up. CapVest’s off-market transaction is less appealing due to the uncertain outcome of the ATO ruling.
- The last close price of A$8.15 is higher than both BGH and CapVest’s off-market offers which suggest both would need to raise their bid.
Medlive Technology (2192.HK) – The Logic Has Shaken
- The revenue YoY growth, net profit YoY growth and net profit margin reached a new low in 2021. The performance of Medlive cannot meet the market’s expectations of high growth.
- The medical knowledge solutions is the cornerstone business and vital to the attractiveness of platform for users. However, this business is not strong enough to make the outlook certain.
- In the fierce competition, more efforts are needed on how to convert physician resources into business value continuously. Due to unreliable logic, we are conservative about Medlive at current stage.
Buy Global LargeCap Pharma: LLY, AZN, NOVO.B-DK, ROG-CH, BMY, BAYN-DE, UCB-BE, IPN-FR, 4528-JP, TEVA
- US cap-weighted Health Care (ETF: XLV-US) remains in a 4.5-month RS uptrend relative to the S&P 500, and we have the Sector on watch for a potential upgrade to overweight.
- The VanEck Pharmaceutical ETF (PPH-US) recently broke out topside a 9-month base and RS displays a bullish reversal. Zooming-out, we can see a 6+ year base breakout.
- Buy: Eli Lilly (LLY-US), Astrazeneca (AZN-US), Novo Nordisk (NOVO.B-DK), Roche (ROG-CH), Bristol-Myers Squibb (BMY-US), Bayer AG (BAYN-DE), UCB S.A. (UCB-BE), Ipsen SA (IPN-FR), ONO Pharmaceutical (4528-JP), and Teva Pharmaceutical (TEVA-US)
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