Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Bottom-Up

Karuna Therapeutics Inc / Equity Bottom-Up

<ul>
<li>In December 2023, American multinational pharmaceutical company Bristol Myers Squibb has agreed to acquire Karuna Therapeutics for $330 per share in cash, implying a total equity value of $14B.</li>
<li>The special meeting of Karuna’s shareholders to be held on March 12, 2023, to consider and vote on various proposals necessary to approve upcoming M&amp;A deal.</li>
<li>I expect the bidding battle among big pharma to acquire Karuna Therapeutics and its valuable pipeline of transformative medicines to treat schizophrenia and psychosis in Alzheimer’s disease.</li>
</ul>


In December 2023, American multinational pharmaceutical company Bristol Myers Squibb has agreed to acquire Karuna Therapeutics for $330 per share in cash, implying a total equity value of $14B.
The special meeting of Karuna’s shareholders to be held on March 12, 2023, to consider and vote on various proposals necessary to approve upcoming M&amp;A deal.
I expect the bidding battle among big pharma to acquire Karuna Therapeutics and its valuable pipeline of transformative medicines to treat schizophrenia and psychosis in Alzheimer’s disease.


Karuna Therapeutics: Is The Bidding Battle Underway?

Global Healthcare Analyst

Tina Banerjee

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bristol-myers-squibb-co" target="_blank" data-smartkarma-citation="entities:1133:1" rel="noopener">Bristol Myers Squibb Co (BMY US)</a> is acquiring <a href="https://www.smartkarma.com/entities/karuna-therapeutics-inc" target="_blank" data-smartkarma-citation="entities:28720:1" rel="noopener">Karuna Therapeutics Inc (KRTX US)</a> for $330/share in cash for equity value of ~$14B. The transaction is expected to close in 1H24. </li>
<li>Karuna’s lead asset, KarXT has FDA action date of September 26, 2024 for the treatment of schizophrenia in adults. KarXT has peak annual sales potential of $6–7B.</li>
<li>Considering strong clinical efficacy and favorable risk profile of KarXT, the deal seems to be fairly valued. Current market price of Karuna shares of $318.41 represents absolute spread of ~3.6%.</li>
</ul>



Bristol Myers Squibb Co (BMY US) is acquiring Karuna Therapeutics Inc (KRTX US) for $330/share in cash for equity value of ~$14B. The transaction is expected to close in 1H24. 
Karuna’s lead asset, KarXT has FDA action date of September 26, 2024 for the treatment of schizophrenia in adults. KarXT has peak annual sales potential of $6–7B.
Considering strong clinical efficacy and favorable risk profile of KarXT, the deal seems to be fairly valued. Current market price of Karuna shares of $318.41 represents absolute spread of ~3.6%.


Karuna Therapeutics (KRTX US): BMS Acquisition Offers Decent Short-Term Trading Opportunity

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On 15 January, Orion Corp announced that its subsidiary PAN Orion Corp will purchase a 25.7% stake in Legochem Biosciences for 549 billion won. </li>
<li>LegoChem Bio specializes in antibody-drug conjugate (ADC) technology. Legochem Bio signed a total of 13 technology transfer contracts amounting to 8.7 trillion won in the past 9 years. </li>
<li>Most investors in Orion Corp would rather have the company focus on its core confectionery/snack business, rather than expand into high risk/high reward biotech business.</li>
</ul>


On 15 January, Orion Corp announced that its subsidiary PAN Orion Corp will purchase a 25.7% stake in Legochem Biosciences for 549 billion won. 
LegoChem Bio specializes in antibody-drug conjugate (ADC) technology. Legochem Bio signed a total of 13 technology transfer contracts amounting to 8.7 trillion won in the past 9 years. 
Most investors in Orion Corp would rather have the company focus on its core confectionery/snack business, rather than expand into high risk/high reward biotech business.


Orion Corp: Concerns About Diversification into LegoChem Bioscience

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>AbbVie Inc. managed to exceed Wall Street's revenue and earnings expectations, reinforcing a positive trajectory for long-term growth.</li><li>The recently reported results exemplify this strength, with adjusted earnings per share reaching $2.95, surpassing the guidance midpoint by $0.14.</li><li>The ex-HUMIRA growth platform stands out as a powerhouse, achieving remarkable revenue growth of over 12% in the quarter.</li></ul>

AbbVie Inc. managed to exceed Wall Street's revenue and earnings expectations, reinforcing a positive trajectory for long-term growth.The recently reported results exemplify this strength, with adjusted earnings per share reaching $2.95, surpassing the guidance midpoint by $0.14.The ex-HUMIRA growth platform stands out as a powerhouse, achieving remarkable revenue growth of over 12% in the quarter.

AbbVie Inc.: Is The Strengthening Neuroscience Pipeline The Key To Future Success? - Major Drivers

<ul><li>AbbVie managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.</li><li>Skyrizi and Rinvoq are exhibiting exceptional growth in immunology, with sales for both treatments increasing over the previous year.</li><li>Skyrizi and Rinvoq are now approved across ten significant indications and are projecting combined revenue growth this year.</li></ul>

AbbVie managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.Skyrizi and Rinvoq are exhibiting exceptional growth in immunology, with sales for both treatments increasing over the previous year.Skyrizi and Rinvoq are now approved across ten significant indications and are projecting combined revenue growth this year.

AbbVie Inc.: Interesting Advancements In Several Preclinical & Early-stage Clinical Assets – Key Drivers

United States

AbbVie Inc. researches and develops pharmaceutical products. The Company produces pharmaceutical drugs for specialty therapeutic areas such as immunology, chronic kidney disease, hepatitis C, women's health, oncology, and neuroscience. AbbVie also offers treatments for diseases including multiple sclerosis, parkinson's, and alzheimer's disease.

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AbbVie (ABBV UN)

Karuna Therapeutics: Is The Bidding Battle Underway?

I see a strong wave of M&A activity in neuropsychiatry space and think the risk/reward of owning KRTX shares is favorable despite the substantial...

Andrei Zakharov

Karuna Therapeutics (KRTX US): BMS Acquisition Offers Decent Short-Term Trading Opportunity

BMS is acquiring Karuna Therapeutics for $330/share in cash, with the deal expected to close in 1H24. Current market price of Karuna shares...

Tina Banerjee

Orion Corp: Concerns About Diversification into LegoChem Bioscience

Orion Corp's investment in LegoChem Bio raises concerns about diversification into risky biotech business. Investors would rather have Orion Corp...

Douglas Kim

AbbVie Inc.: Is The Strengthening Neuroscience Pipeline The Key To Future Success? - Major Drivers

AbbVie Inc. managed to exceed Wall Street's revenue and earnings expectations, reinforcing a positive trajectory for long-term growth. The...

Baptista Research

AbbVie Inc.: Interesting Advancements In Several Preclinical & Early-stage Clinical Assets – Key Drivers

AbbVie managed to surpass the revenue expectations as well as the earnings expectations of Wall Street. Skyrizi and Rinvoq are exhibiting...

Baptista Research

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Karuna Therapeutics: Is The Bidding Battle Underway?

I see a strong wave of M&A activity in neuropsychiatry space and think the risk/reward of owning KRTX shares is favorable despite the substantial...

Andrei Zakharov

Karuna Therapeutics (KRTX US): BMS Acquisition Offers Decent Short-Term Trading Opportunity

​BMS is acquiring Karuna Therapeutics for $330/share in cash, with the deal expected to close in 1H24. Current market price of Karuna shares...

Tina Banerjee

Orion Corp: Concerns About Diversification into LegoChem Bioscience

Orion Corp's investment in LegoChem Bio raises concerns about diversification into risky biotech business. Investors would rather have Orion Corp...

Douglas Kim

AbbVie Inc.: Is The Strengthening Neuroscience Pipeline The Key To Future Success? - Major Drivers

AbbVie Inc. managed to exceed Wall Street's revenue and earnings expectations, reinforcing a positive trajectory for long-term growth. The...

Baptista Research

AbbVie Inc.: Interesting Advancements In Several Preclinical & Early-stage Clinical Assets – Key Drivers

AbbVie managed to surpass the revenue expectations as well as the earnings expectations of Wall Street. Skyrizi and Rinvoq are exhibiting...

Baptista Research

BMS is acquiring Karuna Therapeutics for $330/share in cash, with the deal expected to close in 1H24. Current market price of Karuna shares...